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(TCO 9) Which of the following is NOT a realization event for tax purposes?
Chad found $500 in the street.
Justin traded a baseball card worth $100 for stock certificates.
John sold his a bond worth $10,000.
Jacob sold 100 shares of Google stock. (General Feedback:
Chapter 6, page 129. Realization occurs when the earnings process for goods and services is complete, regardless of when payment is received.)
Comments:
Question 2. Question : (TCO 9) In which of these cases is the realization principle applied differently for tax purposes if the taxpayer is cash basis rather than accrual basis?
The taxpayer receives January salary income in December.
The taxpayer pays January’s water bill in December.