2 McDaddy, a member, prepared a personal tax return for Ferguson for the year 2004 which was filed electronically on April 15, 2005. In September 2005, the 2004 return was audited and the examination resulted in the disallowance of Deduction A. The examination concluded on November 1, 20x5. In March of 2016, McDaddy is in the process of preparing a personal tax return for Ferguson for the year 2005 and Ferguson wants McDaddy to include Deduction A in the tax return. Which of the following statements is true regarding McDaddy's responsibilities as it relates to taking the previously disallowed Deduction A on Ferguson's 20X5 tax return McDaddy is bound by the disallowance of Deduction A on the 2004 tax return and is not allowed to sign a return for 20X5 that contains Deduction A If the disallowance of Deduction A was caused by a lack of documentation, McDaddy may recommend taking Deduction A and can sign the return Since the taxing authority will always rule in the same manner regarding Deduction A as it relates to Ferguson, McDaddy is bound by the disallowance of Deduction A on the 2004 tax return and is not allowed to sign a return for 2005 that contains Deduction A None of the above. Question 7 There which of the following statements is true