Question

The net recognized built-in gain for any year is the least of:

a. taxable income for the year
b. built-in gains at the beginning of the recognition period
c. built-in gains at the time of recognition
d. all of the above

Answer 1

The American colonies distinguished between internal and external taxation, the purposes of taxation, and the types of representation in Parliament. They believed in the need for actual representation and contested revenue-raising taxes without their consent.

Step-by-step explanation:

The question you're asking relates to the distinctions made by the American colonies regarding British parliamentary actions during the period leading up to the American Revolution. The colonies drew a firm line between internal and external taxation by Parliament, understanding internal taxes as those applied to goods and transactions within the colonies, and external taxes as customs duties at ports. They also strongly contested the legitimacy of taxes to regulate trade versus those designed to raise revenue, arguing that the latter were unjust without colonial representation in Parliament. Lastly, the issue of actual vs. virtual representation in Parliament was a fundamental grievance. Colonists felt actual representation, meaning having actual delegates from the colonies in Parliament, was essential, and rejected the notion that members of Parliament, who had never been to the colonies, could represent colonial interests (the idea of virtual representation).