Suppose You Want to Buy a Boat, but You Know

question 135

Multiple Choice

Suppose you want to buy a boat, but you know that interest paid on a boat loan is not tax deductible.Therefore, you take out a home equity loan, the interest on which is still tax deductible.This procedure is an example of

• A)illegal tax avoidance
• B)illegal tax evasion
• C)legal tax avoidance
• D)legal tax evasion
• E)the answer cannot be determined from the information given

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Definitions:

Blood Pressure

The pressure of circulating blood against the walls of blood vessels, often measured as an indicator of cardiovascular health.

Skin Conductance

A measure of the electrical conductance of the skin, which varies with its moisture level and is used as an indicator of psychological or physiological arousal.

Primary Control

The ability to directly influence one's environment or circumstances to bring about desired outcomes.

Job Stress

The harmful physical and emotional responses that occur when the requirements of a job do not match the capabilities, resources, or needs of the worker.