In Preparing His 2011 Federal Income Tax Return,Sam,who Is Not

question 104

Multiple Choice

In preparing his 2011 Federal income tax return,Sam,who is not married and using single filing status,incorrectly claimed alimony payments of $12,000 as an itemized deduction (rather than as a deduction for AGI) .Sam's AGI is $60,000 and itemized deductions (which consist of the alimony,property taxes,and mortgage interest) are $20,000.Which of the following statements is correct?

• A) The error will result in taxable income being overstated.
• B) The error will result in taxable income being understated.
• C) The error could result in either taxable income being overstated or understated.
• D) The error will have no effect on taxable income.
• E) None of the above.

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Definitions:

Supportive Communication Style

A way of exchanging information that is nurturing, encourages open and honest dialogue, builds trust, and fosters a positive environment.

Excess Zone

refers to a state or situation where there is more of something than is necessary, desirable, or manageable.

Communication Style

Refers to the ways in which individuals express themselves and interact with others, being influenced by cultural, societal, and personal preferences.

Weaknesses

Refers to the areas or aspects where an individual or entity may lack strength or proficiency.