Identify the Rule That States That Income Has Been Realized

question 155

Multiple Choice

Identify the rule that states that income has been realized when a taxpayer receives the income and there are no restrictions on the taxpayer's use of the income (e.g., no obligation to repay the amount) :

• A) Claim of right
• B) Constructive receipt
• C) Return of capital principle
• D) Wherewithal to pay
• E) None of the above

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Definitions:

Anemia

A deficiency of hemoglobin or red blood cells.

Red Blood Cells

Cells in the blood that carry oxygen from the lungs to the body's tissues and carbon dioxide back to the lungs.

Spongy Bone

Also known as cancellous or trabecular bone, it is less dense than compact bone, containing large spaces that give it a porous appearance.

Osteoblasts

Cells in the body responsible for the synthesis and mineralization of bone during both initial bone formation and later bone remodeling.