Which of the Following Statements Regarding Exclusions And/or Deferrals Is

question 30

Multiple Choice

Which of the following statements regarding exclusions and/or deferrals is false?

• A)Exclusions are favorable because taxpayers never pay tax on income that is excluded.
• B)Interest income from municipal bonds is excluded from gross income.
• C)Deferrals are income items taxpayers realize in one year but include in gross income in a subsequent year.
• D)An income item need not be realized in order to qualify as an exclusion item.

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Damage to the brain resulting from external mechanical forces, diseases, or conditions, which can impact cognitive, physical, or emotional functioning.

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A severe decline in liver function resulting in the organ's inability to perform its vital tasks, such as detoxifying harmful substances and aiding in metabolism.

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Irrational, false, or misinterpreted thoughts or beliefs that can lead to negative emotions and behaviors.

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A communication style characterized by openly expressing one’s thoughts and feelings in a way that is respectful and direct.