Which of the Following Is Incorrect

question 151

Multiple Choice

Which of the following is incorrect?

• A) Alimony is a deduction for AGI.
• B) The expenses associated with royalty property are a deduction from AGI.
• C) Contributions to a traditional IRA are a deduction for AGI.
• D) Property taxes on taxpayer's personal residence are a deduction from AGI
• E) All of the above are correct.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to evaluate the profitability of an investment.

Aversion To Ambiguity

A preference to avoid options for which the probability of outcomes is unknown, indicating a dislike for uncertain situations.

Gambler's Fallacy

The mistaken belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.

False Consensus

The cognitive bias that leads people to overestimate the extent to which their beliefs, values, opinions, or habits are normal and typical of those of others.