a. Complete the paragraph below that outlines the purpose served by a statute of limitations and how is it relevant in the case of tax controversies. A statute of limitations is a provision in the law that offers a party a defense against a suit brought by another party the expiration of a specified period of time. Therefore, the purpose of a statute of limitations is to "stale" claims. b. Select either "Yes" or "No" to identify which Federal tax areas that have statutes of limitations. Refund claims by taxpayers Collection of unpaid taxes Additional assessments by the IRS The following information applies to Emily for 2021. Her filing status is single. Salary $85,000 Interest income from bonds issued by Xerox 1,100 Alimony payments received (divorce occurred in 2014) 6,000 Contribution to traditional IRA 6,000 Gift from parents 25,000 Short-term capital gain from stock investment 2,500 Amount lost in football office pool (gambling loss) 500 Age 40 Emily has no gambling winnings this year. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Emily. Salary Gift from parents Alimony payments received Short-term capital gain from stock investment Interest income from bonds issued by Xerox Identify whether the items are deductible (fully or partially) by Emily. Amount lost in football office pool Contribution to a traditional IRA Emily's taxable income in 2021 is $ Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2019. Salary $80,000 Interest on bonds issued by City of Boston 3,000 Interest on CD issued by Wells Fargo Bank 2,000 Cash dividend received on Chevron common stock 2,200 Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy) 200,000 100,000 5,000 Inheritance received upon death of aunt Jackson (a cousin) repaid a loan Aiden made to him in 2015 (no interest was provided for) Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and charitable contributions) Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) 9,700 | 3 Age 43 Click here to access the standard deduction table to use, if required. a. Indicate whether the items are taxable or not taxable to Aiden. Cash dividend received on Chevron common stock Salary Interest on bonds issued by City of Boston Life insurance proceeds Interest on a CD issued by Wells Fargo Bank Inherita rece ed upon the death of his aunt Proceeds from repayment of a loan