The tax concept and economic concept of income are in agreement on which of the following:
a. The fair rental value of an owner-occupied home should be included in income.
b. The increase in value of assets held for the entire year should be included in income for the year.
c. Rent income for 2015 collected in 2014 is income for 2014.
d. All of these.
e. None of these.
Answer: c Rent income for 2015 collected in 2014 is income for 2014.