Helen receives stock worth $1,000 from her grandfather as a graduation gift in the current year (her grandfather paid $100 for the stock many years ago). During the current year, she receives a $100 cash dividend on the stock. Helen is not taxed on the value of the stock received in the current year, but she must include the $100 cash dividend in her current-year gross income. Which of the following form(s) the basis for this treatment?
I.Capital recovery conceptII.Legislative grace conceptIII.All-inclusive income conceptIV.Constructive receipt doctrine?
A. Statements II and III are correct.
B. Statements I and IV are correct.
C. Statements II, III, and IV are correct.
D. Statements II and IV are correct.
E. Only statement I is correct.
Answer: A
You might also like to view...
Explain what amount is recorded in the Additional Paid-in Capital account when stock is issued
What types of contracts commonly have agreements to arbitrate?
What will be an ideal response?
Where a stipulation in restraint of trade is part of the sale of a business, it may be valid if the restraint is within reasonable limitations to protect the business's goodwill
a. True b. False Indicate whether the statement is true or false
Nguyen Imports, Inc, accuses Ogilvie, an accountant, of committing defalcation. This is
a. embezzlement. b. general misconduct. c. professional negligence. d. misrepresentation of professional expertise.