Questions 1 20
The following statements are either true or false.
Select the most appropriate answer and darken
the oval under A for true and B for false.
1. An automatic 4-month extension of time to file an individual return can be obta
1. A sole proprietorship with no employees must obtain an EIN for federal tax
purposes if required to file excise, employment, alcohol, tobacco or firearms,
or qualified retirement plan.
2. Both LLC and S corporation have the advantage of pass-through tax
The basis of property must be increased by capital expenditures (property cost, ex.:
legal fees to defend title or title insurance premi, major improvement.) or decreased
by capital returns (depreciation).
Distributions out of earnings and profits (E&F) a
The 4 test under qualified child: relationship / age / principal residence / support
The 4 test under qualified relative : relationship or residence / gross income /
support / dependency.
In college, can exempt the gross income test.
The net unearned inco
1. On December 1, 2014, Jerry purchased a pork belly futures contract for
$30,000. On December 31, 2014, the last day of Jerrys tax year, the
regulated futures contract had a fair market value of $37,000. On February
13, 2015, Jerry sold the pork belly fu
Cost Allocation and Performance
Many companies are divided into departments when they become too large to be
effectively managed as single units. This division into departments is often needed
so that the responsibiliti