An Individual Taxpayer Who Is Self-Employed and an Active Investor

question 51

Multiple Choice

An individual taxpayer who is self-employed and an active investor has qualified for foreign tax credits,nonrefundable personal tax credits and general business credits.Because he knows there are differing limitations on the application of these credits,with resulting interrelated aspects,he wants to know the appropriate order for their application.The appropriate order of the application of these three classes of tax credits is as follow:

• A)(1)foreign tax credits; (2)general business credits; (3)nonrefundable personal tax credits.
• B)(1)general business credits; (2)foreign tax credits; (3)nonrefundable personal tax credits.
• C)(1)foreign tax credits; (2)nonrefundable personal tax credits; (3)general business credits.
• D)(1)nonrefundable personal tax credits; (2)foreign tax credits; (3)general business credits.

Understand the principles of agency law including the authority and liability of agents.

Comprehend the duties owed by agents to their principals and the consequences of breaching these duties.

Recognize the legal implications of agent actions, including unauthorized transactions and the disclosure of information.

Identify the circumstances under which an agency relationship terminates and the resultant rights of third parties.

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Definitions:

Speed-Reading Course

A speed-reading course is a program designed to teach techniques that increase the speed at which an individual reads without significantly compromising comprehension or retention.

Leisure Time

The time available for ease and relaxation outside of compulsory activities such as work and essential household tasks.

Using Resources

The process of employing available assets and materials to achieve desired goals and objectives.

Unattainable Point

A situation or position in economic models that cannot be reached given the current resources and technology.