Your Friend Scotty Informs You That He Received a "Tax­free

question 65

Multiple Choice

Your friend Scotty informs you that he received a "tax­free" reimbursement in 2014 of some medical expenses he paid in 2013.Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?

• A)Scotty itemized deductions in 2013.
• B)Scotty did not itemize deductions in 2013.
• C)Scotty itemized deductions in 2014.
• D)Scotty did not itemize deductions in 2014.
• E)Scotty itemized deductions in 2014 but not in 2013.

---

Definitions:

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty or reliability.

Threat

An influence technique that is a communication taking the general form, “If you don’t do X (which I want), then I will do Y (which you don’t want).” See also Promise.

Reactance

Resistance to persuasion attempts that occurs when the persuasion attempt threatens the independence or freedom of the target.

Boomerang Effect

A phenomenon where an attempt to change behavior results in the opposite effect, particularly in persuasive communication.