Which one of the following statements is true?

On December $31$ of every year a taxpayer must estimate the increase or decrease in value of every asset the taxpayer owns so that the taxpayer can include any increases in value in income and any decreases in value as deductions in determining the taxpayer's tax liability for the year

For income tax purposes, a taxpayer pays tax on any unrealized income for the year.

If a taxpayer experiences a realization event, the taxpayer should undertake a tax analysis of the situation in order to determine the taxpayer's proper tax liability associated with the realization event.

If a taxpayer sells an asset, the taxpayer need only undertake a tax analysis with respect to the transaction if the transaction results in a loss rather than a gain.

On April $15$ of every year a taxpayer must estimate the increase or decrease in value of every asset the taxpayer owns so that the taxpayer can include any increases in value in income and any decreases in value as deductions in determining the taxpayer's tax liability for the preceding year.