7. The principal reason a researcher uses a tax service is to

Select one:

a. provide answers to specific issues

b. provide explanations of relevant case law

c. provide citations to primary sources of authority

d. provide discussions of key issued related to specific Code sections

5. Changing which of the following factors as indicated would increase the after-tax net cash flow of a project:

Select one:

a. Delaying revenue recognition

b. Increasing the discount rate

c. Increasing the marginal tax rate

d. None increase cash flows

e. Delaying expense recognition

4. Jacko Corporation has two projects in which it can invest. Project A has a $500,000 initial cost and will return $700,000 after tax in 4 years. Project B has a $300,000 initial cost and its after-tax returns will be $150,000 in year 1 and $200,000 in year 2. Using a 7 percent discount rate for evaluation, which project(s) should Jacko invest in?

Select one:

a. Project A only

b. Neither project

c. Project B only

d. Both projects

3. An open-fact situation means that

Select one:

a. the client is requesting assistance regarding a previously filed tax return.

b. all of the client's transactions have occurred and the research focuses on finding support for the action already taken.

c. all of the client's transactions have not yet occurred so the events may be carefully planned.

d. the client's tax return has not yet been filed.

2. Which of the following is not a requirement to qualify for innocent spouse relief?

Select one:

a. It would be inequitable to hold the individual liable for the deficiency attributable to the understatement when all facts and circumstances are considered

b. The individual electing innocent spouse relief must have been abandoned by her spouse for more than 6 months.

c. The individual elects innocent spouse relief within the time period that the statute of limitation is open for collection activities.

d. The individual establishes that she did not know and had no reason to know that there was an understatement