Glenna Put Money in Savings Accounts in 50 Different Banks

question 27

Multiple Choice

Glenna put money in savings accounts in 50 different banks. She knows a bank is not required to report to the IRS any interest it pays her that totals less than $10. Because the banks do not report the payments to the IRS, Glenna does not report the interest received as taxable income. Which of the following is (are) true?
I.Glenna's actions are tax evasion because she intentionally misrepresented facts on a tax return to avoid paying tax.
II.Glenna's actions are tax avoidance because the IRS will never know about the interest income.
III.Glenna's actions are tax evasion because she took steps to conceal the income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Statements I and III are correct.
• D)Statements II and III are correct.
• E)Statements I, II, and III are correct.

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Definitions:

Ghrelin Production

The process of producing ghrelin, a hormone primarily released by the stomach that stimulates appetite.

Leptin Levels

Concentrations of leptin, a hormone involved in regulating energy balance and appetite.

Basal Metabolic Rate

The number of calories required to keep your body functioning at rest, also known as BMR.

Set Point

A theory suggesting that an individual's body weight, or other physiological markers, are regulated around a specific value or range by the body's homeostatic mechanisms.