Income that arises from contributions of assets without having to give approximately equal value in return are referred to as non-reciprocal transfers. Which of the following is not an example of a non-reciprocal transfer?
A) a contribution made by the owner to the entity.
B) a cash donation to a charity.
C) a cash donation for the purposes of future research.
D) donations of furniture to a charity.

Question

Quizplus · Accepted Answer

A contribution made by the owner to the entity is not a non-reciprocal transfer because the owner is receiving ownership in the entity in return for the contribution.

Income That Arises from Contributions of Assets Without Having to Give