All of the Following Statements Are True with Regard to Personal

question 84

Multiple Choice

All of the following statements are true with regard to personal residences except:

• A)Temporarily renting property that was formerly the taxpayer's principal residence does not automatically preclude the use of Sec.121.
• B)To qualify for favorable tax treatment under Sec.121,the residence must be either the taxpayer's principal residence or a secondary residence.
• C)In the case of married taxpayers,an individual may claim the exclusion even if the individual's spouse used the exclusion within the past two years.
• D)Houseboats,house trailers,and condominium apartments may qualify as a principal residence.

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Definitions:

Production Techniques

The methods and processes used by firms to produce goods or deliver services, including all aspects from initial design to final output.

Economic Loss

A situation where revenues from business activities are less than the expenses and costs associated with sustaining the business.

Price of Labor

The wage rate or compensation that employers pay workers in exchange for their labor or services.

Dollar Votes

The concept that consumers show their preferences for products and services by how they spend their money.