The Taxpayer Is a Ph

question 7

Multiple Choice

The taxpayer is a Ph.D.student in accounting at City University.The student is paid $1,500 per month for teaching two classes.The total amount received for the year is $13,500.

• A)The $13,500 is excludible if the money is used to pay for tuition and books.
• B)The $13,500 is taxable compensation.
• C)The $13,500 is considered a scholarship and, therefore, is excluded.
• D)The $13,500 is excluded because the total amount received for the year is less than her standard deduction and personal exemption.
• E)None of the above.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive, measured by the area above the supply curve and below the market price.

Whitewater Rafting

A recreational outdoor activity which uses an inflatable raft to navigate through rough or whitewater rivers.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from selling it at the market price.

Cupcakes

Small, individually-sized cakes that are typically frosted and decorated, often used to celebrate events or milestones.