Quiz 1 correjido
Grade Details
1.Question:(TCO A) A taxpayer may litigate a tax dispute without first paying the tax in the:
Your Answer: U.S. District CourtU.S. Tax CourtCORRECTU.S. Court of Federal ClaimsAll of the above
Instructor
Explanation:
Chapter 2
Points
Received:
6 of 6
2.Question:(TCO F) A business bad debt is deductible for tax purposes as a(n):
Instructor
Explanation:
Chapter 6. IRC Sec. 166.
Points
Received:
6 of 6
3.Question:(TCO I) Under the cash method of tax accounting, tax deductions are generally taken when:
Points
Received:
6 of 6
4.Question:(TCO A) Which of the following does not constitute tax evasion?

Points
Received:
6 of 6
5.Question:(TCO C) Which of the following items is not subject to federal income tax?
Your Answer: Interest on U.S. Treasury bonds.Gambling winnings.Interest on loans made in the ordinary course of business.Life insurance proceeds.
CORRECT
Instructor
Explanation:
Chapter 5. Life insurance proceeds are excluded from gross income. IRC Sec. 101.
Points
Received:
6 of 6
6.Question:(TCO B) Sam owes Bob $8,000. Bob cancels (forgives) the debt. The cancellation is not a gift and Sam is neither insolvent nor bankrupt. Which of the following statements is correct concerning the impact of this transaction?
Points
Received:
6 of 6


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- Spring '11
- DOUGLASLETSCH
- Accounting, Taxation in the United States, Instructor Chapter , Quiz