Identify the Rule That States That Income Has Been Realized

question 2

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 choices are correct.

---

Definitions:

Axes

Reference lines used in graphs and charts to show data points and support the visualization of trends, typically including horizontal (x-axis) and vertical (y-axis) lines.

Evaluating

The process of assessing or judging the value, significance, or condition of something, typically following certain criteria or standards.

Abnormal Behavior

Actions or behaviors that deviate significantly from what is considered normal or typical.

Personal Distress

A negative emotional response individuals feel when witnessing others in distress, motivating them to alleviate both their own and others' suffering.