Which of the Following Statements About Taxation of Social Security

question 36

Multiple Choice

Which of the following statements about taxation of Social Security retirement benefits under federal law is (are) true?
I.Social Security retirement benefits are never considered taxable income.
II.Up to 85 percent of Social Security retirement benefits may be considered taxable income,depending on the amount of other income received by the beneficiary.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Machine-Hours

A measure of production output or activity based on the hours that machinery is operational.

Plantwide Predetermined Overhead Rate

A single overhead rate calculated by dividing estimated total manufacturing overhead costs by an estimated total cost driver, applied throughout the entire plant.

Job-Order Costing System

An accounting method that tracks the costs associated with producing a specific item or providing a particular service.

Direct Labor-Hours

The total hours worked by employees that can be directly associated with the production of specific goods or services.