Multiple Choice INTX
Multiple Choice INTX
5. When paid for, which of the following items may involve a return on capital?
a) House and lot c) Dignity
b) Life d) Health
6. The total consideration received from the sale of goods at a gain represents
a) Return on capital c) Either a or b
b) Return of capital d) Both a and b
7. The total consideration received from the sale of goods at a loss represents
a) Return on capital c) Either a or b
b) Return of capital d) Both a and b
9. Which is not an item of gross income because of the absence of an undertaking from the taxpayer?
a) Proceeds of a life insurance policy
b) Forgiveness of indebtedness as an act of gratuity
c) Revaluation surplus on properties
d) Service fees