Mingming and Xavier,unrelated Single Taxpayers,have Each Incurred a $1,000 Expenditure

question 47

Multiple Choice

Mingming and Xavier,unrelated single taxpayers,have each incurred a $1,000 expenditure.Before considering this expenditure,Mingming has taxable income of $500,000 and Xavier has taxable income of $32,000.Assume the expenditure qualifies as either a tax deduction or a 25% credit.Which of the following statements is correct?

• A)Mingming will prefer the credit,but Xavier will prefer the deduction.
• B)Mingming will prefer the deduction,but Xavier will prefer the credit.
• C)Both taxpayers will prefer the credit.
• D)Both taxpayers will prefer the deduction.

---

Definitions:

Malignant Melanoma

This is a serious skin cancer originating from pigment-producing cells, known for its ability to rapidly spread to other organs if not treated early.

Melanocytes

Cells that produce the pigment of the skin, melanin.

Pediculosis Capitis

Pediculosis Capitis is a common parasitic infestation of the scalp caused by head lice.

Numbness

A lack of sensation in a part of the body, often indicating damage or disease in nerves.