Which of the Following Constitutes a Realization

question 24

Multiple Choice

Which of the following constitutes a realization?
I.Oak Ridge Coal Company's coal mine reserves were recently appraised at $5,750,000 more than the previous year's appraisal.
II.Lea's employer gives her (and all other salaried employees) a weekend in Chicago in recognition of their efforts to make this a successful year.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Annuity Contract

A legal agreement in which an individual makes a series of payments in exchange for receiving regular disbursements, either immediately or in the future.

Expected Return

The anticipated profit or loss from an investment over a specified period, based on historical data or probability-weighted projections.

Traditional IRA

An individual retirement account in the United States allowing individuals to save for retirement with tax-free growth or on a tax-deferred basis.

IRA Assets

Funds and investments held within an Individual Retirement Account (IRA), which can include stocks, bonds, mutual funds, and other financial assets.