Quiz 1 y Quiz 2 correjido - Quiz 1 correjido Grade Details...

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 Court
U.S. Tax Court
CORRECT
U.S. Court of Federal Claims
All 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