Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. MC.06.097 Which of the following is not a related party for constructive ownership purposes under $ 267? a. A corporation owned more than 50%

image text in transcribed
7. MC.06.097 Which of the following is not a related party for constructive ownership purposes under $ 267? a. A corporation owned more than 50% by the taxpayer. Ob. The taxpayer's brother. c. The taxpayer's grandmother, Od. The taxpayer's aunt. Oe. None of these choices are correct. 8. MC.05.091 Tonya is a cash basis taxpayer. In 2019, she paid state income taxes of $8,000. In early 2020, she fled her 2019 state income tax return and received a $900 refund. O a. If Tonya itemized her deductions in 2019 on her Federal income tax return, she must amend her 2019 Federal income tax return and use the standard deduction, b. If Tonya itemized her deductions in 2019 on her Federal income tax return and her itemized deductions exceeded the standard deduction by at least $900, the refund will not affect her 2020 tax return. Oc. If Tonya itemized her deductions in 2019 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than $900, she must recognize $900 income in 2020 under the tax benefit rule. Od. If Tonya itemized her deductions in 2019 on her Federal income tax return, she should amend her 2019 return and reduce her itemized deductions by $900. Oe. None of these choices are correct. 9. MC.06.069 Benita incurred a business expense on December 10, 2019, which she charged on her bank credit card. She paid the credit card statement that included the charge on January 5, 2020. Which of the following is correct? a. If Benita is a cash method taxpayer, she cannot deduct the expense until 2020. b. If Benita uses the accrual method, she can choose to deduct the expense in either 2019 or 2020. c. If Benita is an accrual method taxpayer, she can deduct the expense in 2019. d. Only "If Benita is an accrual method taxpayer, she can deduct the expense in 2019" and "If Benita uses the accrual method, she can choose to deduct the expense in either 2019 or 2020" are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

14th Edition

133081605, 132575957, 9780133081602, 978-0132575959

More Books

Students also viewed these Accounting questions

Question

Why and how are people different from one another?

Answered: 1 week ago