Which of the Following Statements Concerning Prizes and Awards Is/are

question 45

Multiple Choice

Which of the following statements concerning prizes and awards is/are correct?
I.Most all prizes and awards are exempt from taxation.
II.Employee awards of tangible, personal property for length of service are at least partially excludable.
III.Any prize or award received can be excluded if it is given to a governmental or charitable organization.
IV.Employee awards for safety achievements are always excluded from income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Only statements II and III are correct.
• D)Only statements I and IV are correct.

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Definitions:

Claims On Real Assets

Financial securities or other types of financial instruments that confer ownership or a right to a portion of the value of tangible assets.

Well-Developed Economy

A country's economic state characterized by strong industrial, service, and financial sectors, stable political systems, high standards of living, and advanced technological infrastructure.

Investment Assets

Tangible or intangible items that individuals, companies, or funds buy or invest in with the expectation of generating future income or profit.

Derivative Assets

Financial instruments whose value is derived from the performance of an underlying asset, index, or interest rate.