Bernie Is a Former Executive Who Is Retired

question 75

Multiple Choice

Bernie is a former executive who is retired.This year Bernie received $250,000 in pension payments and $10,000 of social security payments.What amount must Bernie include in his gross income?

• A)$250,000
• B)$255,000
• C)$258,500
• D)$260,000
• E)Zero

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not relating directly to the entity's usual line of business.

Noncash Investing

Involves transactions that do not directly involve cash but affect the investing activities of a company; for example, acquiring assets through a trade or a note.

Financing Activity

Transactions related to a company’s financing efforts, including issuing debt, obtaining loans, or issuing shares of stock.

Cash Equivalent

Short-term, highly liquid investments that can be easily converted to a known amount of cash.