Bob Brain Files a Single Tax Return and Decides to Itemize

question 38

Multiple Choice

Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,900 of salary, $2,550 long-term capital gain, and $1,950 interest income. Bob's expenses for the year consist of $900 in investment advice feesand $205 in tax return preparation fees. What is Bob's investment expense deduction?

• A)$0.
• B)900.
• C)205.
• D)1,105.
• E)None of the choices are correct.

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Definitions:

Labour Costs

The total expenditure incurred by employers for the payment of wages, benefits, and taxes associated with the employment of labor.

Constraints

Limitations or restrictions that affect the planning, process, or outcome of a project or operation.

Optimum

The most favorable condition or level for growth, reproduction, or efficiency.

Minimize

The act of making something as small or as insignificant as possible.