Which of the Following Is Not a Necessary Condition for Income

question 96

Multiple Choice

Which of the following is not a necessary condition for income to be included in gross income?

• A) income must be realized
• B) income must be paid in cash
• C) income cannot be excluded by law
• D) income must be made available to a taxpayer on the cash basis
• E) All of these

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of owning assets, incurring liabilities, and conducting business.

Stockholders

Individuals or entities that own shares in a corporation, thereby having a claim to a part of its assets and earnings.

Legal Entity

An individual, company, or organization that has legal rights and obligations, including the capacity to enter legal contracts, sue, and be sued.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and use by one person does not reduce availability to others.