Explain the similarities and differences between the claim-of-right doctrine and the constructive receipt doctrine.
What will be an ideal response?
The constructive receipt doctrine applies when the taxpayer has not yet physically received an item of income. Whether the taxpayer has the income within his/her control is the determinative question. The claim-of-right doctrine applies when the taxpayer has actually received the income. The question is whether the amount is currently taxable. If a binding commitment or legal obligation to return the funds exists, then the income is not currently taxable.
You might also like to view...
Which of the following is not a characteristic of good inductive accounting theory research?
a. It must carefully specify the problem that is being examined. b. It must be based on a hypothesis that is capable of being tested. c. It must test the entire population under investigation. d. It must employ the requisite tools of statistical inference.
Pascal regularly updates and adjusts himself to the changes that occur within the organization and the industry he works for. This ability enables him to effectively prepare for the future. This denotes that Pascal ranks high in ________.
A. career self-management B. career enrichment C. career plateauing D. career counseling
The assets and liabilities of the company are $175,000 and $40,000, respectively. Equity should equal:
A) $215,000. B) $135,000. C) $175,000. D) $40,000.
List several questions you should ask yourself to help ensure that you are communicating responsibly and ethically