17. Annie is a cash-basis taxpayer, and was a stellar employee last year. In early December of 2021 her supervisor told Annie she had earned a $1,000 bonus. Annie received a letter confirming this on December 27^th, 2021 showing the amount as well as the amounts which would be withheld. She received the paper check on January 2^nd of 2022.

Which is the correct treatment? A) Assignment of income doctrine- income in 2021. B) Constructive receipt doctrine- income in 2020. C) Return of capital principle- income in 2021. D) Wherewithal to pay principle- income in 2020. E) None of these are correct.

18. In order to qualify as a tax rather than a fee or some other kind of payment, the underlying transaction should

A. Have optional payments.

B. Provide no direct benefit to society as a whole.

C. Benefit the taxpayer in a direct, tangible way.

D. None of these are true.

19) Sal wants to settle a bet at his family barbeque by definitively proving that Irelands tax structure is better than Italys. Sal may be able to best be achieve this by analyzing the _______ in each jurisdiction.

a) Effective tax rate.

b) Blended tax rate.

c) Average tax rate.

d) Marginal tax rate.

20) Which of the following situations REQUIRES the filing of an income tax return?

a) An individual with $675 in total income.

b) An individual with no income and a business loss of $100.

c) An individual with tax due of $1,000.

d) A full-time student with no income, fully supported by parent.