Which of the Following Is a True Statement

question 100

Multiple Choice

Which of the following is a true statement?

• A) Traveling from a personal residence to a place of business is deducted for AGI as a moving expense.
• B) Traveling from a personal residence to a place of business is a miscellaneous itemized deduction subject to the 2 percent of AGI limitation.
• C) The standard mileage rate can be used to calculate the deduction for traveling from a personal residence to a place of business.
• D) Traveling from a personal residence to a place of business is deductible if reimbursed by an employer.
• E) Traveling from a personal residence to a place of business is nondeductible.

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Definitions:

Time Value

A concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Compound Annual

This term, when incomplete, typically refers to the compound annual growth rate (CAGR), which is a measure of the mean annual growth rate of an investment over a specified time period longer than one year.

Compounded Quarterly

The process of calculating and adding interest to the principal sum of an investment or loan on a quarterly basis, thus increasing the amount on which subsequent interest is calculated.