Asked by Daman Kalkat on May 31, 2024
Verified
Royalties can NOT be earned from which of the following:
A) oil wells.
B) patents.
C) coal mines.
D) stocks.
Oil Wells
These are drilling operations established to explore and extract petroleum and natural gas from underground reserves.
Patents
Legal rights granted by a government that give an inventor exclusive rights to use, make, and sell an invention for a certain period of years.
Coal Mines
Operations involved in extracting coal from the ground, often associated with environmental and safety regulations, and significant economic impact on regions.
- Learn the methodology of reporting income from royalties on tax returns and the suitable forms to apply.
Verified Answer
KJ
Krishna JayaswalJun 02, 2024
Final Answer :
D
Explanation :
Royalties are payments made for the use of intellectual property such as patents, copyrights, or trademarks. They are not earned from oil wells, coal mines, or stocks.
Learning Objectives
- Learn the methodology of reporting income from royalties on tax returns and the suitable forms to apply.