When Taxable Income Exceeds Certain Levels,exemption and Deduction Allowances

question 63

Multiple Choice

When taxable income exceeds certain levels,exemption and deduction allowances

• A)increase in proportion to increases in taxable income.
• B)are limited but may be carried over to future years.
• C)are eliminated.
• D)reach a maximum allowable amount.

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Definitions:

Enforceable

Refers to a rule, obligation, or agreement that can be legally imposed or carried out.

Illegal Contract

An agreement that is void and unenforceable by law due to its illegal subject matter or terms.

Legislation

The process of making or enacting laws.

Void

A term describing a legal document that is null and has no legal force or effect.