Joanne,a Single Individual,has $2,000 in State Taxes Withheld from Her

question 3

Multiple Choice

Joanne,a single individual,has $2,000 in state taxes withheld from her salary in 2013.Her total itemized deductions are $6,150.She claims the $2,000 as an itemized deduction on her 2013 tax return.In 2014 she receives a state income tax refund of $700.Under the tax benefit rule she has to report income in 2014 of

• A)$2,000
• B)$ 700.
• C)$ 50.
• D)$ -0-.
• E)$ -0-, but Joanne must file an amended 2013 tax and reduce her itemized deductions by $700.

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Definitions:

Huge Market

A significantly large sector of the economy with high demand for products or services, often leading to ample business opportunities.

Contracted Price

The specific amount agreed upon by parties for goods or services in a contract.

Buyer's Right to Cover

The right of a purchaser to buy goods from another source if the original seller fails to fulfill the contract.

UCC

Uniform Commercial Code; a comprehensive set of laws governing all commercial transactions in the United States.