Tax Planning Involves the Timing of Income and Deductions

question 63

Multiple Choice

Tax planning involves the timing of income and deductions. General rules of thumb to follow when planning include
I.deferring recognition of income.
II.putting deductions into the year with highest marginal tax rate.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Interquartile Range

The difference between the 25th (Q1) and 75th (Q3) percentiles in a dataset, measuring the spread of the middle 50% of the data.

Lower Quartile

The value below which 25% of the data falls, also known as the first quartile.

Weights

Values assigned to various elements in a computation to reflect their importance.

Police Officers

Members of law enforcement agencies who are empowered to enforce the law, protect property and the lives of citizens, and prevent crime and civil disorder.