Which of the Following Statements About Ordinary Income and Capital

question 14

Multiple Choice

Which of the following statements about ordinary income and capital gain is false?

• A)Every item of income is ultimately characterized as either ordinary income or capital gain for federal tax purposes.
• B)Most ordinary income items are taxed at the regular individual or corporate tax rates.
• C)Individuals and corporations pay tax on their capital gains at a preferential rate.
• D)None of the above is false.

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Definitions:

Sexual Contact

Any form of touch or interaction, consensual or not, that is of a sexual nature, potentially including activities from kissing to sexual intercourse.

Hepatitis A

A highly contagious liver infection caused by the hepatitis A virus, often spread through ingestion of contaminated food or water.

Unprotected Sex

Sexual activity without the use of contraceptives or prophylactics to prevent pregnancy and/or sexually transmitted infections (STIs).

Contaminated Food

Food that has been tainted with harmful bacteria, viruses, chemicals, or other substances, posing health risks when consumed.