Which of the Following Is a True Statement

question 12

Multiple Choice

Which of the following is a true statement?

• A)Taxpayers may only deduct interest on up to $1,500,000 of acquisition indebtedness
• B)Taxpayers may deduct interest on up to $1,000,000 of home-equity debt
• C)The deduction for investment interest expense is not subject to limitation
• D)A taxpayer who incurs acquisition indebtedness in 2018 may only deduct interest on up to $750,000 of acquisition indebtedness
• E)None of the choices are correct.

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Definitions:

Express Contract

A contract in which all the terms are clearly set forth in either written or spoken words.

Bilateral Contract

An agreement in which both parties make promises to perform certain acts or refrain from performing certain acts.

Plain-Meaning Rule

A rule of interpretation which states that words in a contract should be given their ordinary meaning.

Unambiguous

Clear and precise with only one possible interpretation or meaning.