Identify Which of the Following Statements Is True

question 6

Multiple Choice

Identify which of the following statements is true.

• A)Capital gains earned in the United States, other than in the conduct of a U.S. trade or business, are taxed to a nonresident alien only if the alien is physically present in the United States for at least 183 days during the tax year.
• B)Aliens, who are U.S. residents, are taxed only on their U.S. income.
• C)A nonresident alien from a nontreaty country is taxed at a 35% rate on U.S. source investment income without the benefit of any deductions.
• D)All of the above are true.

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Definitions:

Unemployment Insurance

A government program that provides temporary financial assistance to unemployed workers who have lost their jobs through no fault of their own.

Nominal Rate

The interest rate before adjustments for inflation. It is the rate that is quoted by banks and other financial institutions for savings accounts, loans, and mortgages.

Inflation

A general increase in prices across an economy, leading to a decrease in the purchasing power of money.

Purchasing Power

The purchasing power of a currency, measured by the quantity of goods or services a single unit can acquire.