36. Form 4868, a six-month extension of time to file, allows a taxpayer to

A) avoid interest on underpayment of taxes due.

B) extend the filing date of the return as well as payment of the tax due.

C) extend the filing date of the return but the estimated amount of tax due must still be paid by the original due date of the return.

D) extend the filing date only at the discretion of the IRS.

37. Assuming a calendar tax year and the conventional 15th of the month due date, all of the following business entities must file their 2021 tax returns by the March 15, 2022 except

A) the C corporation.

B) the S corporation.

C) the partnership.

D) All of the above entities must file their 2021 tax returns by March 15, 2022.

38. Ozzie and Harriet, husband and wife, file separate returns. Ozzie and Harriet live in a community property state that considers separate property income to be separate. Ozzie's salary is $42,000 and Harriet's salary is $46,000. Harriet receives dividend income of $4,000 from stock inherited from her parents. Ozzie receives interest income of $1,000 from bonds purchased with his salary after marriage. Ozzie and Harriet receive $3,200 dividend income from stock they purchased jointly. Harriet's income would be

A) $50,000.

B) $50,100.

C) $51,100.

D) $51,600.

39. A small corporation selling goods would prefer to use the cash method to simplify its accounting records. It will be able to continue using the cash method as long as average gross receipts for its three prior years do not exceed

A) $26 million.

B) $10 million.

C) $3 million.

D) $25 million.

40. Mr. Green's books and records for 2021 reflect the following information:

Salary earned this year

$65,000

Interest on savings account (credited to her

1,000

account in 2021, withdrawn in 2022)

Interest on county bond earned and collected in 2021

2,000

What is the amount Mr. Green should include in his gross income in 2021?

A) $66,000

B) $67,000

C) $68,000

D) $65,000