TCOs 1 2 3 and 5 The tax concept and economic concept of inc

TCOs 1, 2, 3, and 5) The tax concept and economic concept of income are in agreement on which of the following?

The fair rental value of an owner-occupied home should be included in income.

The increase in value of assets held for the entire year should be included in income for the year.

The decrease in value of assets held for the entire year should reduce income for the year.

All of the above

None of the above

Solution

Solution: None of the above

Explanation: The realization requirement is applicable to the taxable income, however does not apply to economic income