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:

Loan Term

The length of time over which a loan agreement is scheduled to be repaid.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined call price.

Deferred Call Provision

A clause in a bond contract that protects the bond issuer from calling (repurchasing) the bond for a specified period, providing stability to the bondholder.

Make-Whole

A provision that compensates bondholders for the loss of anticipated interest, typically in the event of an early redemption.