1. Which of the following statements about business meals is true?

A. The meal is deductible whether or not the taxpayer or their employee is present at the meal. B. No deduction is allowed for meals that are lavish or extravagant. C. The IRS denies deductions for any meal expense for which substantiating evidence is not provided. D. Meals while traveling for business are not deductible.

2. Which of the following fringe benefits is not excludable from an employees wages?

A. Qualified employee discount. B. Educational assistance expenses of $5,250 provided through an educational assistance program. C. $2,500 of group term life insurance covering the death of an employees spouse or dependent. D. Qualified transportation benefits.

3. How may taxes paid by an individual to a foreign country be treated?

A. As an other itemized deduction. B. As a credit against federal income taxes due. C. As an adjustment to gross income. D. As a nondeductible expense.

4. Which of the following statements is correct regarding the deductibility of donations made to qualifying charities by a cash-basis individual taxpayer? A. A contemporaneous written acknowledgment is required for donations of $100. B. A charitable contribution deduction is not allowed for the value of services rendered to a charity. C. A qualified appraisal for real property donations is not required to be attached to the tax return unless the property value exceeds $10,000. D. The charitable contribution deduction for long-term appreciated stock is limited to 60% of adjusted gross income.

5. Which of the following taxpayers must file a return for 2020?

A. Married taxpayers filing jointly who have income of $19,600 for the year and one child who is a dependent. B. A single taxpayer, age 67, with interest and dividend income of $12,400. C. A single taxpayer, claimed as a dependent by his parents, who earns $2,000 from a part-time job and has no unearned income. D. A taxpayer who files as a head of household with one dependent child and who earns $19,650.