Your Friend Scotty Informs You That He Received a "Tax-Free

question 58

Multiple Choice

Your friend Scotty informs you that he received a "tax-free" reimbursement in 2016 of some medical expenses he paid in 2015.Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?

• A)Scotty itemized deductions in 2015.
• B)Scotty did not itemize deductions in 2015.
• C)Scotty itemized deductions in 2016.
• D)Scotty did not itemize deductions in 2016.
• E)Scotty itemized deductions in 2016 but not in 2015.

---

Definitions:

Consumer Behavior

Actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.

Marketing

Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Offering

A product, service, or combination thereof that a company presents to its customers.

Place Utility

Availability of a product in a location convenient for customers.