Cole, a newly licensed CPA, opened an office in year 20XX as a sole practitioner engaged in the practice of public accountancy. Cole reports on the cash basis for income tax purposes and is 46 years old. Listed below are Cole's year 20XX business and nonbusiness transactions, as well as possible tax treatments. For each of Cole's transactions (Items 1 through 20), select the appropriate tax treatment. A tax treatment may be selected once, more than once, or not at all Transactions 1. Fees received for jury duty. 2. Interest income on mortgage loan receivable. 3. Penalty paid to bank on early withdrawal of savings. 4. Write-offs of uncollectible accounts receivable from accounting practice 5. Cost of attending review course in preparation for the Uniform CPA Examination DB 6. Fee for the biennial permit to practice as a CPA 7. Costs of attending CPE courses in fulfillment of state board requirements. 8. Contribution to a qualified Keogh retirement plan 9. Loss sustained from nonbusiness bad debt. 10. Loss sustained on sale of "Small Business Corporation' (Section 1244) stock D 8. Contribution to a qualified Keogh retirement plan, Click to select 9. Loss sustained from nonbusiness bad debt. 10. Loss sustained on sale of "Small Business Corporation (Section 1244) stock. 11. Taxes paid on land owned by Cole and rented out as a parking lot. 12. Interest paid on installment purchases of household furniture. 13. Alimony paid to former spouse who reports the alimony as taxable income, 14. Personal medical expenses charged on credit card in December 20XX but not paid until January of the following year 15. Personal casualty loss sustained in a federally declared disaster area. 16. State inheritance tax paid on bequest received 17. Foreign income tax withheld at source on dividend received 18. Computation of self-employment tax 19. One half of self-employment tax paid with 20XX return filed in April of the following year 20. Insurance premiums paid on Cole's life. 3