Richard Is a Sales Person for Publix Company

question 60

Multiple Choice

Richard is a sales person for Publix Company. Every month Richard fills out an expense account report, documenting all his expenses and submits it for reimbursement. During the current year, Richard submitted documentation and receives $12,500 of reimbursements. All his claims are reimbursed. How will these expenses and reimbursements affect Richard's income tax calculation?
i.Expense amounts are deductible from AGI.II.Reimbursed amounts are excluded from gross income.
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• 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:

Carry A Big Stick

A phrase associated with Theodore Roosevelt's foreign policy, which emphasizes negotiating peacefully while simultaneously displaying military power.

Independence Of Panama

The separation of Panama from Colombia in 1903, facilitated by the United States to secure the construction of the Panama Canal.

Roosevelt Corollary

An extension of the Monroe Doctrine articulated by President Theodore Roosevelt in 1904, stating that the U.S. could intervene in the domestic affairs of its neighbors if those neighbors proved unable to maintain order on their own.

Monroe Doctrine

A principle of US foreign policy originating in the early 19th century that opposes European colonialism in the Americas, viewing any new attempts at colonization as hostile acts toward the US.