Which of the Following Statements Regarding a Taxpayer's Principal Residence

question 92

Multiple Choice

Which of the following statements regarding a taxpayer's principal residence is true forthe purposes of determining whether the taxpayer is eligible to exclude gain realized on the sale of the residence?

• A)A taxpayer may have more than one principal residence at any one time.
• B)A taxpayer's principal residence may not be a houseboat.
• C)A taxpayer with more than one residence may annually elect which residence is considered to be the principal residence.
• D)None of the choices are correct.

---

Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a predetermined formula, typically involving estimated costs and activity levels.

Job Cost Sheet

A job cost sheet is a document or record that collects and summarizes the costs associated with a specific job or project, tracking materials, labor, and overhead.

Factory Overhead Account

An account that accumulates all indirect costs associated with the manufacturing process, excluding direct materials and direct labor.

Period Balance

The amount of money remaining at the end of a financial or accounting period, after all transactions have been accounted for.