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1- Ron is married to Beth at the beginning of 20x1 and had a 20-year-old dependent daughter at the time. During 20x1, ron dies. Beth

1- Ron is married to Beth at the beginning of 20x1 and had a 20-year-old dependent daughter at the time. During 20x1, ron dies. Beth does not remarry in 20x2 or 20x3. Her daughter earns 3000 in 20x2 and 5000 20x3. while attending school part time in both years and is supported by beth. what is beths filing status for 20x1, 20x2 and 20x3 respectively?

a. Married filling joint, surviving spouse, head of household

b. Surviving spouse, surviving spouse, single

c. Married filing separate, surviving spouse, single

d. Married filing join, head of household, single

e. none of the answers are correct 2- which of the following taxpayers is most likely to be audited? a. Salary, interest income

b. Salary, standard deduction

c. Salary ( CEO of a corporation), loss from horse ranch.

d. retired and receiving social security benefits.

e. They are all equally likely to be audited.

.

3. The following information pertains to Stone Company:

Earnings and profits $120,000

Cash distributions to its sole shareholder, Jill $190,000

Jill's stock basis is $50,000. Which of the following statements is true regarding this cash distribution?

a. Jill has a taxable dividend of$170,000.

b. Jill's stock basis is$30,000after the distribution.

c . Jill includes the entire$190,000in income in the year of receipt.

d. Jill has a capital gain of$20,000.

e. None of the answers provided is correct.

Please give detailed explanations on why that answer is correct and for the last question show detailed calculation with explanations on how you got each number.

Thank you

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