11) Simon lives in the UK. He received a bonus of GBP200,000 in February of 2011 for work performed in 2010. How he should report this income on form 1040?*

a) All bonus amounts to be reported in 2011 when actually paid.

b) All bonus amount to be reported in 2010 when work was performed.

3) Spread the bonus between two years and report prorated amounts in 2010 and 2011 based on 2 months in 2011 and 12 months in 2010.

4) Report GBP100,000 in 2010 and GBP100,000 in 2011 12)

12) Which of the following is NOT true about the cost of goods sold?*

a) If you make or buy goods to sell, you can deduct the cost of goods sold from your gross receipts.

b) If you are a merchant, beginning inventory is the cost of merchandise on hand at the beginning of the year that you will sell to customers.

c) If you must account for an inventory in your business, you must generally use an accrual method of accounting for your purchases and sales.

d) A personal service business is an example of a type of business that can usually deduct the cost of goods sold from gross receipts.

13) You CAN NOT use the standard mileage rate for business use of your car if:*

a) You did not claim a section 179 deduction on the car

b) You did not claim a depreciation deduction in an earlier year using MACRS

c) You you own or lease five or more cars that are used for business at the same time

d) You operate more than one car.

14) You received a gift of $150,000 from a foreign uncle. Your tax reporting responsibility is:

1) File Gift Tax return form 709

2) Report the amount of gift on form 1040 as Other Income

3) File Foreign Trust return form 3520

4) No reporting responsibilities for the gift recipient

15) Jacob is a Green Card holder. He is a single owner of LTD incorporated in India. His U.S. tax returns must include forms*

a) 1040 with Schedule C

b) 1040 and 1020

c) 1040 and 5471

d) 1040 and 1020F