Tim purchases State of Oregon general-purpose bonds at a cost of $3,400 in 2018. He receives $170 interest on the bonds in 2018, 2019, and 2020. In 2020, he sells the bonds for $3,800. Tim excludes the bond interest but includes a $400 capital gain in his 2020 gross income. Which of the following concepts or doctrines help(s) in forming the basis for this treatment?

I. Constructive receipt doctrine

II. All-inclusive income concept

Question options:

• Only statement I is correct.

• Only statement II is correct.

• Both statements are correct.

• None of the statements are correct.