Using the Legend Provided, Classify Each Statement Accordingly

question 129

Multiple Choice

Using the legend provided, classify each statement accordingly.
-The allowable deduction for charitable contributions is subject to percentage limitations.

• A)Applies only to the income taxation of individuals
• B)Applies only to the income taxation of C corporations
• C)Applies to both the income taxation of individuals and of C corporations
• D)Applies to neither the income taxation of individuals nor of C corporations

---

Definitions:

Privity of Contract

The relationship between parties in a contract that allows them to sue each other but prevents any third party from doing so.

Novation

The act of replacing an existing contract with a new one, wherein all parties agree to make the switch.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to secure immediate capital.

Assignment

Assignment refers to the transfer of rights or property from one party to another, commonly seen in contracts and legal agreements.