To Help Joseph with His Tax Planning,he Should Carefully Track

question 67

Multiple Choice

To help Joseph with his tax planning,he should carefully track and maintain records for all of the following expenses during the tax year except

• A)all expenses for prescribed health care needs that are not covered by insurance.
• B)all job related expenses,especially those that are and are not reimbursed by his employer.
• C)state and local income taxes,real estate taxes,and personal property taxes.
• D)price appreciation,or increases from January 1 to December 31,for the 1,500 shares of stock he owns.
• E)all of the above.

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Definitions:

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods once the seller ships them.

Net Income

The total earnings of a company after subtracting all costs and expenses, including taxes and interest, from its total revenues.

Physical Inventory

A process of counting and verifying the actual items of inventory on hand, typically conducted at the end of a fiscal period.