Identify which of the following statements is true.
A) The assignment of income doctrine requires a cash method of accounting for a transferor/shareholder to recognize income when accounts receivable are transferred by the shareholder to the corporation in a Sec. 351 exchange in which no gain is otherwise recognized.
B) The assignment of income doctrine is a legislative requirement that income be taxed to the person who earns it.
C) The assignment of income doctrine does not apply if the transferor in a Sec. 351 exchange in which no gain is otherwise recognized transfers when a sole proprietor transfers substantially all the assets and liabilities of the transferor's trade or business to a controlled corporation.
D) All of the above are false.
C) The assignment of income doctrine does not apply if the transferor in a Sec. 351 exchange in which no gain is otherwise recognized transfers when a sole proprietor transfers substantially all the assets and liabilities of the transferor's trade or business to a controlled corporation.
You might also like to view...
Customer-generated reviews are a valuable source of information for:
A) monitoring changes in governmental regulations B) studying competitor actions C) crowdsourcing D) providing feedback for online retailing
When a company calculates ________, the company looks at how much profit it expects to make from a particular customer, including each purchase he will make from the company now and in the future
A) customer lifetime value B) customer relationship management C) utility D) the exchange function E) the marketing mix
All of the following are classified as definitely determinable liabilities except
A) sales tax payable. B) estimated property tax payable. C) the current portion of long-term debt. D) unearned revenue.
Cultural values around attitudes toward ______ can seriously influence the acceptance of new production methods.
Fill in the blank(s) with the appropriate word(s).