Ophra is a cash-basis taxpayer who is employed in the entertainment industry. This year the network that employees Oprah informed her that because of her outstanding performance they are giving her a $1,000,000 bonus. Ophra asked her network to issue the bonus check to her best friend, Gayle, and they complied with this request. Identify the principle that will determine whether Ophra or her friend Gayle will be taxed on the $1,000,000 bonus.

Multiple Choice

• Wherewithal to pay

• Assignment of income doctrine

• Return of capital principle

• Constructive receipt doctrine

• Sharing the wealth principle