A sole proprietorship purchased an asset for $1,000 in 2017 and its value was $1,500 at the end of 2017 . In 2018, the sole proprietorship sold the asset for $1,400 . The sole proprietorship realized a taxable gain of $400 in 2018 but an economic loss of $100 in 2018
a. True
b. False
Indicate whether the statement is true or false
True
RATIONALE: The realization requirement was not satisfied until 2018, and thus $400 in gross income was recognized in that year. Under the economic concept of income, the asset declined in value by $100 in 2018 and thus an economic loss was incurred in that year.
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a. Disclaimer of opinion. b. Qualified opinion. c. Review report. d. Unmodified opinion with a separate emphasis-of-matter paragraph.
If the probability associated with the calculated or observed value of the test statistic (TS CAL) is greater than the level of significance (?), the null hypothesis is rejected
Indicate whether the statement is true or false