During 2013,Mark's Employer Withheld $2,000 from His Wages for State

question 41

Multiple Choice

During 2013,Mark's employer withheld $2,000 from his wages for state income tax.Mark claimed the $2,000 as an itemized deduction on his 2013 federal income tax return.His total itemized deductions for 2013 were $6,000.Mark's taxable income for 2013 was a negative $20,000 due to substantial business losses.Mark received the $2,000 as a refund from the state during 2014.What amount must Mark include in income in 2014?

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

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Definitions:

Sales Revenues

The total amount generated from selling goods or services before any expenses are subtracted.

Cash Operating Costs

The expenses a company incurs during its normal business operations that require cash payments, such as rent, utilities, and payroll.

Annual Depreciation

The portion of the cost of a fixed asset that is allocated as an expense in each accounting period during its useful life.

Simple Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the annual incremental net operating income divided by the initial investment cost.