Which of the following statements is false?

Multiple Choice

• Recognized income is realized income minus income that is excluded or deferred.

• All realized income is included in taxable income.

• If a taxpayer has interest on a municpal bond, their realized income is greater than their gross income.

• Taxable income is gross income minus all allowable deductions.

• Gross income includes all recognized income, but it may not include all realized income.