Income Earned from the Sale of an Asset for More

question 86

Multiple Choice

Income earned from the sale of an asset for more than you paid for it is classified as

• A)dividend income.
• B)business income.
• C)a capital gain.
• D)a windfall.

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Definitions:

Foreigners

Individuals or entities from one country that are located in or interacting with another country.

Liability

An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer of assets, provision of services, or other yielding of economic benefits in the future.

Asset

Any resource owned or controlled by a business or individual that is expected to produce positive economic value or future benefit.

Lower Deficit

A reduction in the amount by which a government's spending exceeds its revenue.