Which of the Following Is a True Statement

question 58

Multiple Choice

Which of the following is a true statement?

• A) Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.
• B) To deduct expenses associated with any profit motivated activity taxpayers must maintain a high level of involvement or effort in the activity throughout the year.
• C) Business activities never require a relatively high level of involvement or effort from the taxpayer.
• D) All business expenses are deducted for AGI.
• E) All of these are true.

---

Definitions:

Japanese Importer

A business entity in Japan that purchases goods or services from abroad for sale in the Japanese market.

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world within a specific period.

Goods Deficit

A situation where a country's imports of physical goods exceed its exports, leading to a negative balance in trade for physical goods.

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting international trade, investments, and economic relations between countries.