Which of the Following Statements Is/are Correct

question 62

Multiple Choice

Which of the following statements is/are correct?
I.Maria receives a necklace worth $300 from her employer in recognition of her production unit's safety record at the company's annual meeting. Maria is not taxed on the $300.
II.Reggie opens a savings account at Mid Financial Savings and Loan. For opening the account he receives a microwave worth $200. On December 31, his account is credited for $300 of interest income. Reggie must report $500 of income.
III.Manu receives a salary of $80,000 as CEO of Camp's Cooking Crockery. Manu owns 60% of Camp's, which is organized as an S corporation. Camp's taxable income for the current year is $300,000 and Camp's pays $100,000 of dividends. Manu must recognize $360,000 of income.
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• A)Statements I, II, and III are correct.
• B)Only statements I, and II are correct.
• C)Only statements II and III are correct
• D)No statement is correct.

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Definitions:

Secured Party

An individual or entity that has an interest, usually a collateral interest, in the personal property of a debtor.

Attach

In legal terms, to seize a person's property to satisfy a court-ordered debt, or the process of becoming legally enforceable or applicable.

Financing Statement

A document, usually a multicopy form, filed in a public office serving as constructive notice to the world that a creditor claims a security interest in collateral that belongs to a certain named debtor.

State Statute

Laws enacted by the legislative bodies of individual states that govern within the state's boundaries, differing from federal statutes which apply across the United States.