Select the best definition for the term. A method of accounting for income based on cash receipts and cash disbursements. An asset that is held for the purpose of producing income. A method of accounting for income based on recording the assets when the right to receive the asset is established and liabilities when the obligation to pay the obligation occurs. 1. Capital Gain 2. Allowable Capital Cost The excess of the sum of the Adjusted Cost Base of a capital asset plus any costs of disposition over the proceeds resulting from the Disposition of the asset. 3. Accrual Basis 4. Capital Loss