Michael Is in the Business of Creating Posters (Display Art)

question 73

Multiple Choice

Michael is in the business of creating posters (display art) for the movie industry. He creates a poster and sells it for a lump sum. He has:

• A) Sold a capital asset.
• B) Sold an ordinary asset.
• C) No gain or loss.
• D) An ordinary gain.
• E) b. and d.

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Definitions:

Retroactive Interference

A memory phenomenon where newly learned information interferes with the recall of previously learned information.

Encoding Specificity Principle

A principle that suggests the recall of information is improved when the contexts present at encoding and retrieval are similar.

Depth-Of-Processing Principle

A theory suggesting the depth (shallow to deep) of mental processing affects memory recall, with deeper processing leading to better recall.

Serial-Order Effect

a phenomenon observed in psychology where the position of an item in a sequence affects the likelihood of its recall.