Marta Finds a Chest Inscribed "Jack Sparrow" That Contains $750,000

question 107

Multiple Choice

Marta finds a chest inscribed "Jack Sparrow" that contains $750,000 of cash while diving among the coral reefs off Key West, Florida. The US Customs and the DEA denied knowledge of the cash, so Marta keeps it.
I.Recognition will not occur because the windfall would not be considered as "derived from capital or from labor."
II.The All-inclusive Income Concept explains the recognition of the cash as income.
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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:

Injection of Wastes

The disposal of waste by pumping it below the earth's surface into porous rock formations.

Clean Water Act

U.S. federal law aimed at reducing pollution and protecting the quality of the nation’s waters.

Environmental Impact Statement

A document that describes the effects of proposed projects on the environment, required for certain actions by government agencies.

National Environmental Policy Act

U.S. legislation aimed at ensuring that governmental activities consider environmental impacts and involve public engagement.