Which of the Following Always Generate Taxable Income

question 2

Multiple Choice

Which of the following always generate taxable income?
I.Interest free loan over $10,000 from family member.
II.Interest free loan over $10,000 from employer.
III.Interest free loan under $10,000.
IV.Interest free loan over $100,000.
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• A)Only statement I, II and IV are correct.
• B)Only statements II and III are correct.
• C)Only statements I and IV are correct.
• D)Only statement IV is correct.
• E)Only statements II and IV are correct.

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Definitions:

Inventory Column

A column in financial spreadsheets or ledgers that records the quantities and values of products a company has in stock.

Cash Payments Journal

A journal used in accounting to record all payments made by a company, including expenses and purchases.

Accounts Payable

Liabilities or amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Double Entry System

An accounting method where every transaction is recorded in at least two accounts, ensuring the accounting equation remains balanced.