Which of the following constitutes a realization?
I.Jamie prepares a will for Wilson. He pays her by painting her house.
II.Jones' cow gives birth. The calf will become a member of Jones' feeder cattle herd.
III.Oak Ridge Coal Company's coal mine reserves were recently appraised at $5,750,000 more than the previous year's appraisal.
IV.Lea's employer gives her (and all other salaried employees) a weekend in Orlando in recognition of their efforts to make this a successful year.

A)Only statement I is correct.
B)Only statement II is correct.
C)Only statements I and II are correct.
D)Only statements I and IV are correct.
E)Only statements II, III, and IV are correct.

Question

Which of the following constitutes a realization?
I.Jamie prepares a will for Wilson. He pays her by painting her house.
II.Jones' cow gives birth. The calf will become a member of Jones' feeder cattle herd.
III.Oak Ridge Coal Company's coal mine reserves were recently appraised at $5,750,000 more than the previous year's appraisal.
IV.Lea's employer gives her (and all other salaried employees) a weekend in Orlando in recognition of their efforts to make this a successful year.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Only statements I and II are correct.
D)Only statements I and IV are correct.
E)Only statements II, III, and IV are correct.

Quizplus · Accepted Answer

A realization occurs when there is an exchange of goods or services for value. In statement I, Jamie receives payment for her services by having her house painted, which is a realization. In statement IV, Lea receives a weekend trip as a form of compensation, which also constitutes a realization.

Which of the Following Constitutes a Realization