Legal Methods of Reducing Your Taxes Include All of the Following

question 84

Multiple Choice

Legal methods of reducing your taxes include all of the following except

• A) organizing your records to track appropriate expenses and contributions.
• B) preparing your return early in the year so you are not rushed.
• C) seeking the advice of an accountant.
• D) overstating cash contributions to Salvation Army Christmas kettles.

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Definitions:

Price Elasticity

Measures how much the quantity demanded of a good changes in response to a change in its price.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Inelastic

Describing a situation where the demand for a good or service is relatively unaffected by changes in its price.

Essential Consumption

The purchase and use of goods and services that are considered necessary for basic living and well-being.