FURNITURE

The Internal Revenue Service in the government’s Department of the Treasury is making a new regulation about tax deductions. For rental companies, the government decided that furniture and some other kinds of goods provided by the companies is allowable against rent income tax. Imagine that you belong to a panel of government advisors to provide help in drafting the regulation. You want to specify clearly in the regulation what should be included as furniture. Because the regulation will affect thousands of rental companies, as well as tax income of the government, it is important to include only furniture in the regulation, but not other kinds of goods, which would be subject to different rate of deduction, such that the rental companies have a clear idea what to include in their list of tax deductible items. A clear categorization of furniture will thus ensure a fair and reasonable tax regulation.

Consider each of the following items, and decide whether acting in the panel of government advisors, you would classify the item in the category of furniture.

Circle ’Y’ if you think the item should be included in the category.

Circle ’N’ if you think the item should not be included in the category.

Circle ’Ø’ if you don’t know the meaning of the word.

You have to choose between ’Y’ and ’N’ even if you find it difficult to decide.

Circle ’Ø’ only when you don’t know the meaning of the word.