Question

9. Antonia, a CPA in training researching the definition of income, but has not been able to find a source. She comes to you for advice as to where she should focus her research. In which of the following sources will you advise her to research for the definition of income: a United States Supreme Court Cases b. The Internal Revenue Code - which state that except as otherwise provided gross income includes all income" c. The Treasury Regulations - which state. "Anything that increases one's wealth is income" d. U.S. Constitution - which gives congress right to levy tax on income c. All of the above. 10. On October 31, 2016, Bob, a cash basis taxpayer, gave his son Dave common stock that paid a dividend every year. On November 15, 2016, the corporation declared the dividend payable on December 15, 2016, to shareholders of record as of November 22, 2016. The corporation has paid the $1.000 dividend once each year for the past ten years, during which Bob owned the stock. Dave collected the dividend on December 15, 2016. Assuming Bob and Dave are in the Tax Court's jurisdiction, who recognizes the dividend for tax purposes? Bob must include all of the dividend in his gross income. Dave must include all of the dividend in his gross income. c. Bob must report $750 of dividend income, and Dave must report $250 of dividend income. d. Bob must report $250 of dividend income, and Dave must report $750 of dividend income. None of the above is correct. e. 11. Alice owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000. On April 1, Alice sells her and subject to the mortgage for $650.000 in cash, a note for $600,000, and property with a fair market value of $120,000. What is the amount realized? a. $1,250,000 b. $1,370,000 c. $1,720,000 d. $1,820,000 12 IRC Section 61(A) defines "gross income" as: a. Except as otherwise provided..., gross income means all income from whate source derived, including but not limited to)... b. Anything that increases ones wealth. c. Income from whatever source derived, without apportionment... d. A change in net worth plus consumption e. None of the above.

Answer 1

Answer:-

Q 9)

The Option (e) All of the above is the correct choice.

The definition of income can be found in all the options a,b,c and d.

The option a United states supreme court cases defines definition of income in legal perspective
The option b Internal revenue code defines income in accordance with revenue
The option c The treasury regulations are tax regulations which are issued by internal revenue service of US defines income in perspective of taxes
The option d is US constitution which levies taxes on income defines income that is taxable and clearly states the income definition.

Hence Antonia a CPA can who is researching the definition of income can use all of the 4 sources.

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