In February of the Current Year (Assume a Non- Leap

question 347

Multiple Choice

In February of the current year (assume a non- leap year) , Ken and Kelsey received their property tax statement for last calendar- year taxes of $1,600, which they paid to the taxing authority on March 1 of the current year. They had purchased their home on May 1 last year. What amount of property tax on this statement may they claim as an itemized deduction this year?

• A) $1,600
• B) $0
• C) $1,074
• D) $800

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Definitions:

Closing Balance

The amount of money in an account at the end of a period, after all transactions have been accounted for.

Bank Account

A financial account maintained by a bank or another financial institution in which the deposits, withdrawals, and balances of a customer are recorded.

Maturity Value

The sum owed to an investor at the conclusion of a fixed-duration investment, encompassing both the original amount invested and the accrued interest.

Promissory Note

A financial instrument constituting a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.