Identify the Rule That Determines Whether a Taxpayer Must Include

question 119

Multiple Choice

Identify the rule that determines whether a taxpayer must include in income a refund of an amount deducted in a previous year:

• A) Tax refund rule
• B) Constructive receipt
• C) Return of capital principle
• D) Tax benefit rule
• E) None of the above

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Definitions:

Leadership Ethics

A subfield of ethics that deals with the moral principles and standards guiding leaders in their behavior and decision-making.

Self-Interest

The pursuit of personal gain or advantage, where individuals prioritize their own needs, desires, or benefits.

Altruism

The principle or practice of concern for the welfare of others, often manifested by selfless acts.

Utilitarianism

A moral theory that advocates for actions that maximize happiness or benefit for the greatest number of people.