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1. (TCO A) A revenue enhancementpayer may litigate a tax dispute without first paying the tax in the: (Points : 5)
U.S. dominion Court.
U.S. Court of Federal Claims.
U.S. Supreme Court.
U.S. Tax Court.|
2. (TCO F) A profession bad debt is deductible for tax purposes as a(n): (Points : 5)
short-term pileus loss.
ordinary business deduction.
long-term capital loss.
business happening loss.|
3. (TCO I) Under the cash method of tax accounting, tax deductions be generally taken when: (Points : 5)
payment is made.
the liability arises.
there is pelf income to absorb the expense.
None of the above|
4. (TCO A) Which of the by-line constitutes tax escapism? (Points : 5)
Arranging your affairs to keep your tax liability as low as possible under the tax law
flunk to disclose a tax liability from a undefiled transaction
Trying to maximize profits
Trying to minimize your tax liability.|
5. (TCO C) Which of the following items is not subject to federal income tax? (Points : 5)
Interest on municipal bonds
$5,000 birthday gift from a family member
Discharge of debt by bankruptcy

Life insurance proceeds
All of the above|
6. (TCO B) surface-to-air missile owes chase after $8,000. bob cancels (forgives) the debt.



The cancellation is not a gift, and Sam is neither belly-up(predicate) nor bankrupt. Which of the following statements is correct concerning the impact of this transaction? (Points : 5)
Both Bob and Sam recognize $8,000 of dutiable income.
Bob recognizes $8,000 of taxable income.
Sam recognizes $8,000 of taxable income.
Neither Bob nor Sam has any taxable income from this transaction.|
7. (TCO I) Steve, a cash basis taxpayer, owns two rental properties. establish on the following information, compute the amount that he essential include in his 2011 gross rental income.

Property #1, bail deposit on one-year lease received 2/1/11
All of deposit returned at lease decision: $500
Property #1, payment received 2/1/11...If you take to get a full essay, order it on our website: Ordercustompaper.com



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