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.

---

Definitions:

Positive Correlation

A relationship between two variables in which both move in the same direction, meaning as one variable increases, the other also increases.

Moral Hazard

A situation in which one party is more likely to take risks because they do not bear the full consequences of their actions, often due to information asymmetry.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays a claim.

Insurance Coverage

The amount and types of risk or liability that are covered for an individual or entity by insurance services, against losses.