Which of the Following Statements Concerning Prizes and Awards Is/are

question 45

Multiple Choice

Which of the following statements concerning prizes and awards is/are correct?
I.Most all prizes and awards are exempt from taxation.
II.Employee awards of tangible, personal property for length of service are at least partially excludable.
III.Any prize or award received can be excluded if it is given to a governmental or charitable organization.
IV.Employee awards for safety achievements are always excluded from income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Only statements II and III are correct.
• D)Only statements I and IV are correct.

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Definitions:

Copy A

This term is often associated with tax forms, where Copy A is the official part of a form sent to a tax authority, like the IRS, detailing financial information.

Form W-2

A tax form used in the United States to report wages paid to employees and the taxes withheld from them.

Wages

Compensation received by employees for services performed, usually based on hours worked or a fixed salary.

Household Workers

Employees who perform domestic service in a home, such as cleaners, maids, and gardeners.