It is important not only to know and understand various tax laws, but also to ascertain how they apply in real-life decision-making situations. The following discussion allows you to apply your knowledge of these tax exclusions.

George, a wealthy investor, is uncertain whether he should invest in taxable or tax-exempt bonds. What tax and nontax factors should be considered?

George needs assistance understanding the different application of prepaid income under tax law and financial accounting. Explain this difference to George.