Duncan purchased State of Wisconsin general-purpose bonds at a cost of $3,400 in 2012. He receives $170 interest on the bonds in 2012, 2013, and 2014. In 2014, he sells the bonds for $3,800. Duncan excludes the bond interest, but must include a $400 capital gain in his 2014 gross income. Which of the following Concepts, Constructs, and/or Doctrines help in forming the basis for this treatment? I. Capital Recovery Concept. II. Legislative Grace Concept.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.
Correct Answer:
Verified
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