9. A deduction for parking and other traffic violations incurred during business use of an automobile is allowed under the actual cost method but not the automatic mileage method. a. True b. False 10. Traditional but not Roth IRAs possess the advantage of tax-free accumulation of income within the plan, a. True b. False 11. Nathan owns Activity A, which produces income, and Activity B, which produces passive activity losses. From a tax planning perspective, Nathan will be better off if Activity A is passive. a. True b. False 12. Joyce owns an activity (not real estate) in which she participates for 100 hours a year, her spouse participates for 450 hours. Joyce qualifies as a material participant a. True b. False Multiple Choice Indicate the answer choice that best completes the statement or answers the question. 13. Early in the year, Marlon was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year. Reimbursement of medical expenses Marlon paid by a medical insurance policy he purchased $10,000 Damage settlement to replace his lost salary 15,000 What is the amount that Marlon must include in gross income for the current year? a. $25,000 b. $15,000. c. $12,500 d. S10,000 e. SO 9. A deduction for parking and other traffic violations incurred during business use of an automobile is allowed under the actual cost method but not the automatic mileage method. a. True b. False 10. Traditional but not Roth IRAs possess the advantage of tax-free accumulation of income within the plan, a. True b. False 11. Nathan owns Activity A, which produces income, and Activity B, which produces passive activity losses. From a tax planning perspective, Nathan will be better off if Activity A is passive. a. True b. False 12. Joyce owns an activity (not real estate) in which she participates for 100 hours a year, her spouse participates for 450 hours. Joyce qualifies as a material participant a. True b. False Multiple Choice Indicate the answer choice that best completes the statement or answers the question. 13. Early in the year, Marlon was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year. Reimbursement of medical expenses Marlon paid by a medical insurance policy he purchased $10,000 Damage settlement to replace his lost salary 15,000 What is the amount that Marlon must include in gross income for the current year? a. $25,000 b. $15,000. c. $12,500 d. S10,000 e. SO