In Which of the Following Will the Constructive Receipt Doctrine

question 135

Multiple Choice

In which of the following will the Constructive Receipt Doctrine require reporting income in 2013?
I.Cornell's December 2013 salary check is withheld until January 15,2014,because the employer does not have sufficient cash to cover its December payroll.
II.Donnie is an employee of Holt Corporation.The corporation regularly mails payroll checks to employees to arrive on or before the last day of each month.Donnie's check arrives in the mail at his house on December 31,2013.However,Donnie was vacationing in Cancun and did not return until January 8,2014.Donnie deposited the check into his account the next day.
III.In December 2013,Cory signs a contract to play basketball for the Rhythms.He receives a signing bonus of $2,000,000 to be paid over 5 years beginning in 2014.His regular salary of $800,000 will be paid monthly during the season that begins in 2014.

• A)Statements I, II, and III are correct.
• B)Statements II and III are correct.
• C)Statements I and II are correct.
• D)Only statement II is correct.
• E)Only statement III is correct.

Analyze the impact of dissolution on third-party relationships.

Interpret the applicable laws and acts governing partnerships.

Explain the foundation and principles of limited partnerships.

Understand the structure and formation of partnerships and limited partnerships, including the necessary formalities.

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Definitions:

Quota

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time frame.

Tariff

A tax imposed by a government on goods and services imported from other countries, intended to increase their price and make domestic products more competitive.

Most-Favored-Nation Status

A trade status granting a nation the best trading terms available to any other nation, such as lowest tariffs or highest import quotas.

Negotiated Tariff Rates

Tariff rates determined through bargaining between countries, rather than set unilaterally, often resulting in lower duties.