Thomas Changes Jobs During 2018 and Moves from Philadelphia to El

question 29

Multiple Choice

Thomas changes jobs during 2018 and moves from Philadelphia to El Paso. Which of the following expenses relating to the move can Thomas deduct?
I.Prior to the move, Thomas flies to El Paso to find an apartment.
II.The cost of meals while driving his household goods to El Paso.
​

• 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:

Foreign Exchange

The trading of currencies on the forex market, allowing for the conversion of one currency into another.

Capital Account Balance

A part of a country's balance of payments that records all transactions involving the purchase or sale of assets.

Current Account Balance

The current account balance is a country's trade balance plus net income and direct payments between it and other countries, indicating a nation's foreign trade and financial status.

Statistical Discrepancy

The difference between the sum of the components of GDP calculated on the income side and the expenditure side, due to measurement errors and data omissions.