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Victor Receives a $2,000 Tax Credit for Childcare

Question 26

Multiple Choice

Victor receives a $2,000 tax credit for childcare. The credit was earned because of Victor's expenditures for daycare for his son while Victor worked. What concept, construct, or doctrine helps explain why Victor receives this tax credit?


A) Ability to Pay Concept.
B) Administrative Convenience Concept.
C) Arm's-Length Transaction Concept.
D) Capital Recovery Concept.
E) Pay-as-You-Go Concept.

Correct Answer:

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