Your friend Scotty informs you that he received a "tax-free" reimbursement in 2017 of some medical expenses he paid in 2016 . Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?
a. Scotty itemized deductions in 2016.
b. Scotty did not itemize deductions in 2016.
c. Scotty itemized deductions in 2017.
d. Scotty did not itemize deductions in 2017.
e. Scotty itemized deductions in 2017 but not in 2016.
b
RATIONALE: If Scotty did not itemize in 2016, he can exclude the reimbursement from gross income in 2017 . If Scotty itemized deductions in 2016, he must report the reimbursement as gross income in 2017 to the extent he received a tax benefit from deducting medical expenses in 2016 . Whether he itemized in 2017 will have no impact on the treatment of the reimbursement.
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Answer the following statement true (T) or false (F)
Answer the following statement(s) true (T) or false (F)
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Scenario C: The Nagoya Precision Drill Company has just begun to initiate major changes in its manufacturing processes. There has been some resistance among employees to these changes, but middle management has developed some specific approaches to enlist their cooperation:1. Management will hold a series of small-group discussions in which they will explain why the changes are being made.2. A few leading workers known for their resistance to change have been appointed to serve as employee liaisons on the change leadership team.3. A vacation-time bonus will be awarded to employee groups who meet the organization's timeline for implementing the changes.4. If any employees consistently cause their work groups to fall behind schedule, they will be given the choice of either adapting to the
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