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11. Which of the following is a true statement?

A. Individuals qualify for the moving expense deduction only if they change employers.

B. To satisfy the distance test, the distance from the taxpayer's old residence to the new place of work must be at least 50 miles more than the distance from the old residence to the old place of work.

C. To satisfy the business test, the taxpayer must be employed full-time for 45 of the first 52 weeks after the move.

D. The moving expense deduction is restricted to expenses associated with moving personal possessions to the new residence.

E. All of the choices are true.

12. Assume that John's marginal tax rate is 40%. If a city of Austin bond pays 6% interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds?

A. 30.00%.

B. 10.00%.

C. 6.00%.

D. 3.60%.

E. None of the choices are correct.

14. This year Ed celebrated his 25^th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $250 and a $2,000 cash bonus. What amount must Ed include in his gross income?

A. Zero if Ed offers to contribute his watch and bonus to a qualified charity.

B. $2,000.

C. $250.

D. Zero - all employee awards are excluded from gross income.

E. $2,250.

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