Gross Income Includes All of the Following, Except

question 71

Multiple Choice

Gross income includes all of the following, except

• A) salary or wages.
• B) interest or dividends received.
• C) employer's current contribution to 401(k).
• D) capital gains realized.

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Definitions:

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not yet been sold or liquidated.

Amortized Cost Basis

A valuation method for certain investments that smooths out returns over the life of the investment, taking into account amortization or accretion adjustments.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Other than Temporary

Refers to impairments or reductions in asset values that are not expected to be recovered in the short term.