Sheira Harvey Worked in Poland for Part of the Year

question 94

Multiple Choice

Sheira Harvey worked in Poland for part of the year and earned $50,000 while she was there.This income will not be included in her income for the year.This represents:

• A)A deduction
• B)An exclusion
• C)An exemption
• D)A tax credit
• E)An increase of income

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Definitions:

Cost Method

A method of accounting that records the investment at its original cost and recognizes income when dividends are received.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.

Consolidation

The process of combining financial statements of a parent company with those of its subsidiaries to present as one economic entity.

Ownership Percentage

The share of ownership interest a person or entity holds in a company, typically expressed as a percentage of the outstanding shares.