For the current year, Ben and Emely file jointly and have a marginal tax bracket of 35%, although their average tax rate is 27%. Their son, age 18, has W-2 wages of $2,400 and $5,200 of interest income from a taxable bond fund. The cost of his support is $6,000. How much of the son's income will be taxed at the Estate & Trust rate?

A. $0 B. $1,000 C. $2,000 D. $3,000 E. $4,000

9) In the question above, what is the son's total tax liability?

A. $1,050 B. $810 C. $760 D. $485 E. $541 F. $800

10) Kevin , a cash basis taxpayer, has just been informed that he is being audited by the IRS. What IRS doctrine or test should concern Ian most?

I. The all-events test

II. The doctrine of constructive receipt

A. I only B. II only C. Both I and II. D. Neither I nor II.