Steve Worked as a Tech Supervisor for a Computer Company

question 125

Multiple Choice

Steve worked as a tech supervisor for a computer company. In September of 2016, he was laid off. He was paid unemployment compensation for the rest of the year totaling $7,000. Which of the following is true?

• A)Steve will have to report all $7,000 of the unemployment compensation as income.
• B)Steve will have to report $4,600 of the unemployment compensation as income.
• C)Unemployment compensation is never taxable.
• D)As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable.
• E)None of the above is true.

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Definitions:

Revised Act

An updated or amended version of a legislative act, incorporating changes made since its original enactment.

Promissory Note

A written, legally binding document in which one party promises to pay a specified sum of money to another party under agreed terms.

Takeover Bid

An offer made to acquire some or all of shareholders' shares in a corporation with the aim of gaining control of the company.

Cumulative Dividend

A feature of preferred stock that entitles shareholders to receive dividends that were omitted in the past.