Income realization may occur as a result of
I.Relief from a liability.
II.Exchange of property.
III.Payment of the taxpayer's indebtedness by another.
IV.A barter transaction where only goods and services are exchanged.

A)Only statement I is correct.
B)Only statement II is correct.
C)Only statements I and IV are correct.
D)Only statements I, II, and IV are correct.
E)Statements I, II, III, and IV are all correct.

Question

Income realization may occur as a result of
I.Relief from a liability.
II.Exchange of property.
III.Payment of the taxpayer's indebtedness by another.
IV.A barter transaction where only goods and services are exchanged.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Only statements I and IV are correct.
D)Only statements I, II, and IV are correct.
E)Statements I, II, III, and IV are all correct.

Quizplus · Accepted Answer

Income realization can occur through various means, including relief from a liability (where the reduction in debt can be considered income), exchange of property (where the gain from the exchange can be considered income), payment of the taxpayer's indebtedness by another (which can result in income to the taxpayer), and barter transactions (where the value of goods or services received can be considered income).

Income Realization May Occur as a Result of