Figure 4-1 -Refer to Figure 4-1.Tony and Liz Have Just Inherited $25,000.Which

question 149

Multiple Choice

Figure 4-1

-Refer to Figure 4-1.Tony and Liz have just inherited $25,000.Which of the following statements is true?

• A)The $25,000 will be taxable income in the year received.
• B)The $25,000 is an exclusion for federal income taxes.
• C)They should invest this money in corporate bonds to save on taxes.
• D)The $25,000 will be taxable income in the year received, and they should invest this money in corporate bonds to save on taxes.

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Definitions:

Efficient

Being effective without wasting time, effort, or resources; achieving maximum productivity with minimum wasted effort or expense.

Voltage Drop

Decrease in voltage measured after current passes through a resistance. Also known as voltage loss. See definition for the second of Kirchhoff’s Laws.

Ohmmeter

A device used to measure electrical resistance in units called Ohms.

Resistance

In electricity, opposition to current flow measured in ohms.