By Donating $1,000 to the Salvation Army,Caroline Reduces Her Taxable

question 330

Multiple Choice

By donating $1,000 to the Salvation Army,Caroline reduces her taxable income.To Caroline,the reduction in her taxable income is

• A) a marginal benefit.
• B) an opportunity cost.
• C) an incentive.
• D) a marginal cost.
• E) the margin.

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Definitions:

Endorsement

Approval, support, or recommendation of a product, service, or concept, often by a public figure or organization.

Negotiated

Refers to the process by which parties discuss and reach a mutual agreement on the terms and conditions of a deal or contract.

Joint Payees

Individuals or entities who are named together on a financial instrument and to whom the amount specified is payable jointly.

Payable

The status of an obligation that is due to be paid.