Exemption amounts and itemized deductions are two types of reductions used to calculate taxable income. Which of the following are characteristics of these types of deductions?
I. Taxpayers deduct the larger of itemized deductions or the standard deduction.
II. Exemption amounts are dependent on amounts of expenditures for dependents.
III. Deductions for adjusted gross income are limited to
those incurred in a trade or business, incurred in the earning of income, and certain specifically allowed personal expenses of individuals.
a. Only statement III is correct.
b. Statements I and II are correct.
c. Statements I and III are correct.
d. Statements II and III are correct.
e. Statements I, II, and III are correct.
c
You might also like to view...
A flow chart typically shows:
a. the flow of logic, usually with yes or no responses b. the order things occur in c. rows and columns of data d. none of the above
In which of the following areas is the principle of nondiscrimination being central to the GATT evident?
A) Normal trade relations B) National treatment C) Elimination of quotas and quantitative restrictions D) All of the above
Yamakawa Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit$200.00Variable expense per unit$64.00Fixed expense per month$670,480 Required: Determine the monthly break-even in unit sales.
What will be an ideal response?
Small-item shippers will most likely prefer _______.
a. LTL carriers b. TL carriers c. both LTL and TL carriers d. neither LTL nor TL carriers