1)Mr. Fritz is a commissioned real estate client of yours. He has just bought and sold a piece of land in a ''quick flip'' transaction. What kind of income might this be to him: employment, business, property or capital gain? 

2)Does the Act require that the ''profit'' from a business be calculated in accordance with generally accepted accounting principles? 

3)Donald Corleone owns an illegal gambling house. He has made significant ''profits'' on this activity, but has not reported the income since he believes it is not taxable. Is he correct? 

4)Opco Ltd. took advantage of a program offered by the government and hired two employees whose wages were partially offset by a government subsidy. The owner felt that since he was really just getting some of his tax dollars back through this subsidy, the amount received would not be taxable. What do you think? 

5)As long as an expenditure was made for the purpose of earning income from a business or ITA: 18 property then it is deductible. Is this statement true? Comment. 6)Subsection 18. lists those items that are prohibited from being deducted because of the nature of the expenditure. If an expense passes those tests, will it be?