This Year Norma, a Single Taxpayer, Paid $11,200 of Real

question 64

Multiple Choice

This year Norma, a single taxpayer, paid $11,200 of real estate taxes on her personal residence and $9,500 of state income taxes.Which of the following is true?

• A)Norma can deduct $11,200 of real estate taxes as an itemized deduction.
• B)Norma can deduct $9,500 of state income taxes as a for AGI deduction.
• C)Norma can deduct $10,000 of taxes as an itemized deduction.
• D)Even if Norma has no other itemized deductions, she should claim the standard deduction.
• E)None of the choices are correct.

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Definitions:

Retailer

A business or person that sells goods directly to consumers for their own use.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, recognized as an asset.

Cash Sales

Transactions where customers pay for goods or services at the time of purchase using cash.

Credit Sales

Transactions where the payment is deferred to a future date, allowing the buyer to receive goods or services before payment is made.