Phil Atkinson Recently Entered into an Agreement with Sonic to Open

question 9

Multiple Choice

Phil Atkinson recently entered into an agreement with Sonic to open seven Sonic Fast-Food Restaurant franchises. According to the agreement that Phil entered into, he has the right to open up to seven Sonic Fast-Food Restaurant franchises within the city limits of Portland, Oregon. Phil has entered into a(n) :

• A) individual franchise agreement
• B) area franchise agreement
• C) locality franchise agreement
• D) district franchise agreement
• E) neighborhood franchise agreement

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Definitions:

Schedule A

The section of the tax form 1040 used by taxpayers to itemize deductions.

Itemized Deductions

Specific expenses that taxpayers can report in order to decrease their taxable income, as opposed to taking a standard deduction.

Mortgage Interest

The interest paid on a mortgage loan, which may be deductible on U.S. federal income tax, reducing taxable income.

Prescription Medicines

Medications that can only be obtained with a doctor's written order and are eligible for certain tax exemptions when used for medical care.