Which of the following statements explain why the tax laws employ the realization principle to measure income rather than economists' concept of income? Select "True" or "False" for each of the statements provided below.

a. The realization principle requires that assets must be measured at fair market value at the beginning and end of each year. This valuation method aids in establishing adequate liquidity with which the assessed taxes can be paid. FALSE or TRUE

b. Under the realization principle, income is not recognized until there has been a transaction (a sale or exchange of goods or services), which provides an objective measure of the amount of the income. TRUE OR FALSE

c. Economists measure income by determining the fair market value of the individual's net assets at the beginning and end of the year. The need to value assets annually would make compliance with the tax law burdensome and would cause numerous controversies between the taxpayer and the IRS over valuation. FALSE OR TRUE

d. Under the realization principle, the appreciation in the market value of assets before a sale or other disposition is sufficient to warrant income recognition. In addition, the imputed savings that arise when individuals create assets for their own use (for example, feed grown for a farmer's own livestock) are income because an exchange or transaction has occurred. TRUE OR FALSE

e. Economic income includes imputed values for such items as the rental value of an owner-occupied home and the value of food a taxpayer might grow for personal consumption. As a result, the IRS, Congress, and the courts have rejected the economic concept of income as impractical. TRUE OR FALSE