Applying the Groetzinger facts and circumstances inquiry, the following would most likely constitute the carrying on of a trade or business

A. Hilary, an attorney, and Bill a philanthropist and writer, purchase a farm in New York state which they use as a weekend home. The farm include a renovated historic barn that on occasion they rent as a bed and breakfast

B. Hilary and Bill purchase an apple orchard, devoting all of their time to the growing, harvesting and sale of New York state apples

C. Hilary, an attorney, and Bill, a philanthropist and writer, purchase a farm in New York state which includes an apple orchard. Hilary and Bill hire Montell during the fall to oversee apple-picking which is open to the public

D. All of the above

The following are business entities recognized by the Code for tax purposes

A. Taxable entity, not-for-profit entity, charitable organization

B. Conduit entity, taxable entity, trust or estate

C. Conduit entity, not-for-profit entity, trust or estate

D. Conduit entity, taxable entity, not-for-profit entity

Genteel Corp. owns a 15-percent stock ownership in Crotchety Corp. Crotchety Corp. pays Genteel an $89,000 dividend. What is Genteel's dividends received deduction assuming Genteel's taxable income is $200,000 before the deduction

A. $62,300

B. $140,000

C. $71,200

D. $202,300

A taxpayer must seek the Commissioner's consent to change an accounting method in which of the following circumstances:

A. To change inventory valuation methods.

B. To change the cost recovery life an asset

C. To change an incorrectly computed tax liability

D. All of the above

The following is true of the procedure used to change an accounting method:

A. The application to obtain the Commissioner's consent must be made in the year preceding the year of change

B. A taxpayer need not obtain the Commissioner's consent to change an improper accounting method.

C. Whenever a change in accounting method is made or requested, the taxpayer must compute a Code Sec. 481 cumulative adjustment

D. All of the above

E. Two of the above

ASC Topic 740 would likely apply in the following situation

A. The tax rate imposed on the income of a foreign subsidiary in the foreign country is 38 percent, in the U.S. it would be subject to a tax rate of 25 percenT

B. A U.S. corporation repatriates the earnings of its foreign subsidiary on an annual basis

C. A U.S. Corporation has no foreign subsidiaries

D. A U.S. Corporation has a foreign subsidiary located in a country which imposes a tax at a rate of 10 percent, if that income were repatriated to the U.S. the corporation would pay tax on that income at the rate of 35 percent.