$73.$ A calendar$-$year, accrual$-$basis corporation expects to have $$2,000,000$ in gross income for the current year. it implements a long$-$term bonus program for its employees. To do this, they plan to pay out $$500,000$ in bonuses to their top $20$ outstanding salespeople. The corporation immediately signs a promise to pay these bonuses to the employees. The bonuses will be paid out in equal annual increments each February for the next four years. Assuming the corporation has $$600,000$ in other deductions this year, how much will its taxable income for the current year be$?$

$$900\mathrm{.}000$

$$1,275,000$

$$1,500,000$

$$1,875,000$

$123.$ What must an S corporation do to file after March $15$ without a penalty?

Request a $6-$month extension to file before March $15$

Request a $6-$month extension to file before April $15$

File the return on or before April $15$

Request a $7-$month extension to file before March $15$

$124.$ How much is the penalty for substantial understatement of tax?

$5\%$ of understatement

$20\%$ of understatement

$25\%$ of understatement

$40\%$ of understatement

$125.$ Under which circumstance would the statute of limitations increase to six years?

Gift tax returns

Death of the taxpayer

Fraudulent omission of income

Substantial omission of income

$126.$ Which action refers to a situation where the facts have not yet occurred?

$$ Preparing a federal tax return

$$ Evaluation for an open$-$fact pattern

O Consultation for a closed$-$fact pattern$$

$$ Consultation for a completed transaction