Identify Which of the Following Statements Is False

question 55

Multiple Choice

Identify which of the following statements is false.

• A) Taxable pensions and annuities are excluded from the definition of earned income when computing the foreign- earned income exclusion.
• B) An individual meets the bona fide resident test by establishing a home in a foreign country for 330 days.
• C) Earned income is excludable from gross income only if it is foreign- source income.
• D) All of the above are false.

---

Definitions:

Valid Consideration

Valid consideration in a contract represents something of value that is given by all parties involved, serving as the reason or inducement to enter into the contract.

Adequacy Of Consideration

Refers to the fairness of the bargain in a contract, ensuring that what is exchanged holds reasonable value.

Detriment

A loss or harm suffered as a result of an action or decision.

Illusory Promise

A statement or promise that is vague or lacks commitment and does not legally bind the person making it.