Which of the Following Better Explains 'Free on Board (FOB)

question 50

Multiple Choice

Which of the following better explains 'free on board (FOB) '? 

• A) The seller must place the goods alongside the ship at the named port. 
• B) The seller must load the goods on board the vessel nominated by the buyer. 
• C) The seller must pay the costs and freight to bring the goods to the port of destination. 
• D) The seller must pay the costs and freight to bring the goods to the port of destination and procure and pay for the insurance.

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Definitions:

Net Capital Gain

The profit from the sale of an asset or investment, subtracted by any losses from sales in the same tax year.

AMT

Short for Alternative Minimum Tax, a parallel tax system designed to ensure that individuals and corporations pay at least a minimum amount of tax.

AMT Income

Income calculated for the Alternative Minimum Tax, which includes certain adjustments and preferences to regular taxable income.

Alternative Minimum Tax

A parallel tax system designed to ensure that high-income individuals, corporations, estates, and trusts pay at least a minimum amount of tax.