Identify Which of the Following Statements Is False

question 5

Multiple Choice

Identify which of the following statements is false.

• A) The foreign-earned income exclusion is $104,100 in 2018.
• B) The primary purpose for the foreign-earned income exclusion is to prevent double taxation of income.
• C) A taxpayer who is physically present in a foreign country for 330 full days out of a 12-month period satisfies the bona fide foreign resident test.
• D) All of the above are false.

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Definitions:

Unsystematic Risk

The risk associated with a specific issuer or sector, which can be mitigated through diversification.

International Securities

Financial instruments, such as stocks and bonds, that are traded on global markets and denominated in various currencies.

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification in a portfolio.