Which of the Following Is a True Statement

question 14

Multiple Choice

Which of the following is a true statement?

• A) Unreimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
• B) Fees for tax preparation are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
• C) Reimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation unless the employer's reimbursement plan qualifies as an accountable plan.
• D) Fees for investment advice are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
• E) All of the choices are true.

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Definitions:

Behavioral Economics

A field of economics that analyzes how psychological, cognitive, emotional, cultural, and social factors affect economic decisions.

Nudge

A concept in behavioral economics suggesting a way to influence people's behavior and decision making subtly without limiting their choices.

Hedonic Treadmill

A theory suggesting that people continually seek higher levels of wealth, status, or possessions but do not achieve lasting increases in happiness.

Prospect Theory

A theory in behavioral economics that explores how individuals make decisions between options involving risk with uncertain outcome probabilities.