Which of the Following Is a True Statement

question 42

Multiple Choice

Which of the following is a true statement?

• A) Meals are deductible for an employee who is forced to work during the lunch hour.
• B) If travel has both business and personal aspects, the cost of transportation is always deductible but the deductibility of lodging depends upon whether business is conducted that day.
• C) Meals, lodging, and incidental expenditures are only deductible if the taxpayer is away from home overnight while traveling.
• D) When a taxpayer travels solely for business purposes, only half of the costs of travel are deductible.
• E) None of the choices are true.

---

Definitions:

Demand Negotiable Note

A written, unconditional promise to pay a certain amount of money upon demand to the bearer or at a specified time.

Altered to Read

The modification or editing of text or documents such that the content is changed to convey a different message or information.

Holder in Due Course

A holder in due course is a party in possession of a negotiable instrument, such as a check, who has taken it under certain conditions, protecting them from prior claims and defenses.

Consumer Credit Contract

An agreement between a borrower and a lender in which the borrower receives something of value now and agrees to repay the lender at a future date, usually with interest.