1.Terry is a sole proprietorship. He desires to be taxed as a corporation. What does he need to do?

a) Create a new entity

b) File Form 4562

c) Make an S election

d)File Form 8832

2) All of the following income items are includible in an employee's gross income except _____.

a)severance pay for the cancellation of employment

b)the amount received for personal injuries

c)an accrued vacation

d)moving expense reimbursement

3)If Jerry incurred $750 of business-related meal expenses during the year, how much can he deduct on his Schedule C?

a)None; its a personal expense b) $375

c)$750

d)$675