The Chen Trust Incurred the Following Items During the Year

question 111

Multiple Choice

The Chen Trust incurred the following items during the year. $\begin{array}{lr}\text { Taxable interest received } & \$ 40,000 \\\text { Tax-exempt interest received } & 60,000 \\\text { Tax preparation fees paid } & 5,000\end{array}$ What is Chen's deduction for the tax preparation fees?

• A)$0
• B)$2,000
• C)$3,000
• D)$5,000

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Definitions:

Definition

A precise explanation of the meaning of a word or phrase, often distinguishing it from similar concepts.

Merchant

A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying goods to a particular trade.

Consideration

The value (such as money, goods, or services) that is given by one party to another in exchange for a contractual promise.

Consumer Lease

An agreement in which a consumer agrees to rent a good, service, or property for personal, family, or household use for a specified period.