Which of the Following Statements About a Tax Deficiency Is

question 25

Multiple Choice

Which of the following statements about a tax deficiency is true?

• A)If a taxpayer is assessed a deficiency,the government will charge interest on the deficiency regardless of the reason for the deficiency.
• B)Individuals who pay interest on a tax deficiency can deduct it as an itemized deduction.
• C)Individuals who pay interest on a tax deficiency can deduct it as a business expense.
• D)Statements A.and B.are both true.

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Definitions:

Elasticity

A measure of how much buyers and sellers respond to changes in market conditions, particularly price changes.

Energy

The quantitative property that must be transferred to an object in order to perform work on, or to heat, the object, existing in various forms such as kinetic, potential, thermal, and others.

Doomsday Projections

Predictions or forecasts about catastrophic future events leading to severe disruption or destruction.

Technology

The application of scientific knowledge for practical purposes, especially in industry.