Identify the Following with an E If All or Part

question 53

Short Answer

Identify the following with an E if all or part of the item could be an exclusion from gross income or D if all or part of the item could be a deduction.
-Scholarship
f. State income taxes
b. Medical expense
g. Tax exempt interest
c. Charitable contribution
h. Student loan interest
d. Life insurance proceeds
i. Social Security benefits
e. Inheritances
j. The value of food stamps

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Definitions:

Depreciable Cost

The total cost of a fixed asset that is allocated to depreciation expense over the asset's useful life, calculated as the asset's cost minus its salvage value.

Straight-Line Rate

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.

Annual Straight-Line Depreciation

A method of calculating the depreciation of an asset, spreading its cost evenly over its useful life.

Straight-Line Depreciation Rate

A method of calculating the depreciation of an asset, where the asset's cost is evenly distributed over its useful life.