Ch.5 Quie Fall 2017 ) (Protected View) FILE OOLSVEW PROTECTED VIW Be carts-fies fiorm the Iinternet can contain vinase Unless you need to edit, it's safes to stay in Profected iew Enable Editing 8. The application of Code 7872 to interest-free or below-market loans has certain tax consequences for the lender and borrower. They include a. the borrower may be allowed an itemized deduction for the interest hypothetically paid to the lender b. the lender is not required to report the hypothetical payment as interest income ntil c. the lender treats the hypothetical payment as camed income. d. loan is repaid the lender is deemed to have made a completed gift of the loan amount. 9. Several useful techniques permit an individual taxpayer to postpone income recognition. They include all the following, except a. cash investments in X, Inc. bonds. b. installment sales of property. c. deferred compensation arrangements. d. income on Treasury bills. c. all of the above pennit deferral. 10. "Substantial tax benefits await the self-sufficient (c.g., an individual who can repair his own automobile is better off from a tax perspective than someone who cannot). "Select the cotrect comment on this statement. a. The above statement is valid, since such an individual may barter his or her services for those of another and pay no tax on the services fiumished to him. The above statement is valid because the concept of taxable income would exclude the benefit derived from repairing one's own automobile. The above statement is valid because the form of benefit principle enables a taxpayer to exclude gains received in a certain forn The above statement is false-no tax benefits await the self-sufficient. b. c. d. op