Which of the Following Is a True Statement

question 62

Multiple Choice

Which of the following is a true statement?

• A)Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax
• B)To deduct expenses associated with any profit-motivated activity, taxpayers must maintain a high level of involvement or effort in the activity throughout the year
• C)Business activities never require a relatively high level of involvement or effort from the taxpayer
• D)All business expenses are deducted for AGI
• E)All of these choices are correct.

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Definitions:

Promotion

Marketing activities intended to increase the awareness, interest, and sales of a product or service.

Compensation Increase

An adjustment or rise in the salary or wages paid to an employee.

Transfer

A move to another job within the company at essentially the same level and wage.