Which of the Following Statements Is/are Correct? I

question 68

Multiple Choice

Which of the following statements is/are correct? I. Maria receives a necklace worth $300 from her employer in recognition of her production unit's safety record at the company's annual meeting. Maria is not taxed on the $300. Reggie opens a savings account at Mid Financial Savings and Loan. For opening the II. III. account he receives a microwave worth $200. On December 31, his account is credited for $300 of interest income. Reggie must report $500 of income. Manu receives a salary of $80,000 as CEO of Camp's Cooking Crockery. Manu owns 60% of Camp's, which is organized as an S corporation. Camp's taxable income for the current year is $300,000 and Camp's pays $100,000 of dividends. Manu must recognize $360,000 of income.

• A) Statements I, II, and III are correct.
• B) Only statements I, and II are correct.
• C) Only statements II and III are correct
• D) No statement is correct.

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Definitions:

Iodine

A nonmetallic element belonging to the halogen group.

Invasive Procedure

Diagnostic methods involving entry into living tissue.

MRI

Magnetic Resonance Imaging, a non-invasive imaging technique used to view detailed internal structures of the body.

Padded Room

A room with walls covered in soft materials, designed to prevent injury and used in various therapeutic or custodial settings.