Three Weeks After Abed Died, His Brother Tony Properly Received

question 17

Multiple Choice

Three weeks after Abed died, his brother Tony properly received Abed's last paycheck from his employer. The gross amount of the check was $4,000, and a $300 deduction for state income taxes was subtracted in computing the net amount of the payment. Which of the following statements is true?

• A) The $300 is deductible on neither Tony's income tax return nor on Abed's estate tax return.
• B) The $300 is deductible both on Tony's income tax return and on Abed's estate tax return.
• C) The $300 is deductible only in computing Abed's taxable estate.
• D) The $300 is deductible only on the income tax return of Abed's estate.

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Definitions:

Financial Misrepresentation

The act of intentionally misleading stakeholders about the financial condition or performance of a business.

Anti-Fraud Measures

Strategies and tools implemented by organizations to detect, prevent, and eliminate fraud.

Information System

A network, usually within an organization, by which information is generated and circulated. This network involves computer systems as well as other mechanisms, such as payroll records, purchasing documents, and managers’ impressions and specific knowledge.

Customer Satisfaction Surveys

Tools or questionnaires used by businesses to evaluate the level of satisfaction of their customers with the company's products or services.