Match Each Statement with the Correct Term Below

question 151

Multiple Choice

Match each statement with the correct term below.
-Amortizable or deductible expense

• A)Automobile used 75% for business.
• B)Investment interest expense on loan to acquire municipal bonds.
• C)Cost of investigating a new trade or business that the taxpayer enters.
• D)Can be separated into two classifications.
• E)Expenses related to royalty income
• F)Expenditure to influence legislation.
• G)Cost of a new roof for office building.
• H)Relates to an income producing activity mainly carried on for recreation or personal enjoyment.
• I)Deductibility depends on income and amount of personal and rental use.
• J)Deductibility depends on whether the area is used exclusively for trade or business activities.

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Definitions:

Dual Banking System

A regulatory framework in which banks are chartered and supervised at both the state and federal levels.

State Banks

Financial institutions that are chartered by a state in the United States to provide banking services.

National Banks

Financial institutions that are chartered by the federal government and play a major role in the country's banking system.

Federal Deposit Insurance Corporation (FDIC)

A United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions.