${ } _ { 6 } C _ { 0 }$

question 228

Multiple Choice

${ } _ { 6 } C _ { 0 }$

• A) 1
• B) 6
• C) 180
• D) 360

Understand the computation of taxable income and how it impacts tax owed.

Describe capital gains and how they are treated in terms of taxation.

Differentiate between tax avoidance and tax evasion, including their legal implications.

Understand the concept of exclusions in the context of gross income.

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Definitions:

Nominal Rate

The nominal rate is the stated interest rate of a loan or investment, not accounting for compounding or inflation.

Compounded

The process where interest earned on a principal amount is reinvested, resulting in interest earning interest over time.

Demand Loan

A loan wherein the lender is entitled to demand full repayment at any time without notice.

Compounded Quarterly

Interest calculated on an investment or debt four times a year.