Which of the Tax Concept(s) Allow for the Deferral of Gains

question 97

Multiple Choice

Which of the tax concept(s) allow for the deferral of gains on nonrecognition transactions?
I.Capital Recovery Concept.
II.Ability to Pay Concept.
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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:

Supply

The complete quantity of a product or service that can be bought at a specific price point.

Supply Schedule

A table or graph showing the quantity of a good or service that producers are willing and able to supply at various prices.

Quantity Supplied

The inventory of products or services that is put up for sale by producers at a specified rate.

Price

The amount of money required to purchase a good or service in the market.