Which of the following is true concerning the corporate taxation of insurance premiums and the treatment of uninsured losses?
A) Both premiums and expected losses are deductible at the beginning of the year.
B) Uninsured losses are deductible only when they occur and premiums are deductible in the year paid.
C) Since payments for insured losses are 100% tax deductible, commercial insurance is economically inefficient.
D) Losses paid under the deductible amount are not tax deductible because the insured assumed the losses.
B
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An owner has been using a parcel of land for heavy industry since 1973. Subsequently, the property is zoned for commercial use. The owner's continued industrial use of the property is a/an
a. violation of the existing zoning b. deviation from the master plan c. example of zoning variance d. an illegal non-conforming use
"Capitalization" is a process used to:
A: Find the interest rate; B: Convert income into value; C: Establish the market value; D: Determine the net income.