The broadest income concept
I.considers all income received (e.g., cash, property, services, etc.) taxable.
II.implies that anything of value received may be taxable.
III.is referred to as the legislative grace concept.
IV.implies that all increases in wealth may be taxable

Question

The broadest income concept
I.considers all income received (e.g., cash, property, services, etc.) taxable.
II.implies that anything of value received may be taxable.
III.is referred to as the legislative grace concept.
IV.implies that all increases in wealth may be taxable
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Quizplus · Accepted Answer

Statement I reflects the comprehensive income concept, which means all forms of income are taxable. Statement II is correct as the broadest income concept considers any receipt of value as taxable income. Statement IV is also correct as it implies that any increase in wealth, regardless of its source, may be taxable income. However, statement III is incorrect as the legislative grace concept refers to the idea that income is only taxable if the law explicitly states it is taxable, while the broadest income concept implies that all income is taxable unless it is explicitly excluded.

The Broadest Income Concept