Kareem owns 100% of an apartment building in California but hasn't been there since he signed the purchase agreement.  His son Shaquille lives nearby and manages the property day to day taking care of all of the tenant's needs. Larry works in the management office and collects all of the rent checks and takes them to the bank.   Which of the following statements is TRUE? a.Group of answer choices Shaquille recognizes the rental income if Larry deposits the money in Shaquille's bank account. b.Kareem recognizes the rental income because he owns the building. c. Shaquille recognizes the rental income because he manages the apartment building and is responsible to the tenants. d.Larry recognizes the rental income because he has constructive receipt

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 40P
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Kareem owns 100% of an apartment building in California but hasn't been there since he signed the purchase agreement.  His son Shaquille lives nearby and manages the property day to day taking care of all of the tenant's needs. Larry works in the management office and collects all of the rent checks and takes them to the bank.  

Which of the following statements is TRUE?

a.Group of answer choices Shaquille recognizes the rental income if Larry deposits the money in Shaquille's bank account.
b.Kareem recognizes the rental income because he owns the building.
c. Shaquille recognizes the rental income because he manages the apartment building and is responsible to the tenants.
d.Larry recognizes the rental income because he has constructive receipt
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