Which of the Following Would Ordinarily Not Be Taxed in a Local

question 22

Multiple Choice

Which of the following would ordinarily not be taxed in a local property tax?

• A) land subdivided for residential construction
• B) an apartment building
• C) a shopping center
• D) a private collection of valuable paintings by Picasso and Monet

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Definitions:

Profit Test

A determination to assess the viability and profitability of a project or investment by comparing costs against potential benefits.

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific time period.