In February of the Current Year (Assume a Non-Leap Year),Ken

question 41

Multiple Choice

In February of the current year (assume a non-leap year) ,Ken and Kelsey received their property tax statement for last calendar-year taxes of $1,600,which they paid to the taxing authority on March 1 of the current year.They had purchased their home on May 1 last year.What amount of property tax on this statement may they claim as an itemized deduction this year?

• A)$0
• B)$800
• C)$1,074
• D)$1,600

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Definitions:

Price Ceiling

A legally imposed maximum price for goods or services, intended to protect consumers from high prices.

Binding Rent Control

A regulation that sets a maximum price for rented property below the market equilibrium price, leading to a shortage of available rental units.

Landlords Leaving

The phenomenon where property owners exit the rental market, which can be due to various factors including regulatory changes or shifts in market conditions.

Binding Price Ceiling

A maximum price set by the government below the equilibrium price, causing shortages.