(c) The requirement is to determine the correct statement
with regard to income in respect of a cash basis decedent.
Income in respect of a decedent is income earned by a decedent
before death that was not includible in the decedent’s final income
tax return because of the decedent’s method of accounting
(e.g., receivables of a cash basis decedent). Such income must be
included in gross income by the person who receives it and has
the same character (e.g., ordinary or capital) as it would have had
if the decedent had lived.