During 2015,Mark's Employer Withheld $2,000 from His Wages for State

question 47

Multiple Choice

During 2015,Mark's employer withheld $2,000 from his wages for state income tax.Mark claimed the $2,000 as an itemized deduction on his 2015 federal income tax return.His total itemized deductions for 2015 were $8,000.Mark's taxable income for 2015 was a negative $20,000 due to substantial business losses.Mark received the $2,000 as a refund from the state during 2016.What amount must Mark include in income in 2016?

• A)$0
• B)$1,000
• C)$2,000
• D)$6,000

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Definitions:

Proper Journal Entry

A record used in accounting to track the transfer of assets, liabilities, or equity from one account to another, ensuring each transaction is accurately captured.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, such as monthly or annually, rather than continuously.

Physical Count

A manual inventory verification process where actual items are counted to ensure accuracy of records.

Inventory System

A method for tracking the quantity, value, and location of a company's inventory, both current and sold.