For the following taxpayers, determine the choice of year-end. Select the "X" from the dropdown if the taxpayer can choose the described year end.

Item	Taxpayer	Calendar Year-End	Fiscal Year-End	Fiscal Year-End but some restrictions
1.	Individual with no separate books and records
2.	Partnership for which all the partners are calendar year-end individuals
3.	A corporation that keeps in book and records on a fiscal year ending June 30
4.	An S corporation for which all shareholders are calendar year-end individuals

Melaleuca, Inc., is an accrual-basis taxpayer with the following transactions during the calendar tax year:

Line Item Description	Amount
Accrual business income (except rent and interest)	$63,000
Accrual business expenses (except rent)	42,000
Three months' rent received on a leased building on November 1 of this year	9,000
Prepaid interest for one year received on a note on July 1 of the current year	12,000
Six months' rent paid on December 1 for business property	7,200

Calculate Melaleuca, Inc.'s, net income for this year.

Income and loss from which of the following entity(ies) is passed through and taxed on the individual's personal tax returns?

a.S corporation.

b.Partnership.

c.Sole proprietor.

d.All of these choices are correct.

Which of the following entities is likely to have the greatest flexibility in choosing a year-end other than a calendar year-end?

a.S corporation.

b.General partnership.

c.Corporation.

d.Sole proprietor.

Which of the following is an option for a minor with unearned income of $3,500?

a.Pay at the minors individual tax rate

b.Pay tax at trust and estate rates

c.Pay $0 tax since the income is unearned

d.Pay tax at the parents rate

The 3.8 percent Medicare tax on net investment income applies to:

a.interest and dividends.

b.IRA distributions.

c.tax-exempt interest income.

d.wages.

If a taxpayer did not receive a copy of their Form W-2:

a.They should request a copy from the Social Security Administration.

b.They should file a tax return and not include the income.

c.They should file a Form 1040-X which is the form used for missing information returns.

d.They should attach a Form 4852 reporting the missing Form W-2 if a copy cannot be obtained.

If a taxpayer discovers a math error on their tax return in which two lines were added incorrectly:

a.Prepare the page of the tax return that was wrong and resubmit only that page.

b.They should immediately file a Form 1040-X.

c.They should prepare a new tax return and submit that electronically.

d.Conventional wisdom is that they simply wait for the IRS to send them a notice addressing the mistake.

Ben and Jennifer get divorced in 2022. Which of the following statements is true regarding the tax consequences of the divorce?

a.They will file as married filing separately until one of them remarries.

b.Ben will be able to deduct any alimony paid to Jennifer in future years.

c.Any property divided between the two will be subject to gain or loss recognition.

d.If a QDRO is issued regarding Ben's qualified retirement plan assets, Jennifer will step into Bens shoes for the plan assets that are transferred to her and will not be taxed on the distribution if rolled over into a new qualified plan.

Rhianna is a tax resident of the U.S. and has a bank account in Switzerland with a balance equivalent to about US$14,000. Which of the following best describes Rhiannas foreign bank account reporting requirements?

a.Rhianna should complete Form 8938 only and file with her tax return.

b.Rhianna does not need to report a foreign bank account.

c.Rhianna should file FBAR only using the electronic filing system.

d.Rhianna should file both FBAR and Form 8938 and submit both with her tax return.

Yolanda is a cash-basis taxpayer with the following transactions during the year:

Line Item Description	Amount
Cash received from sales of products	$70,000
Cash paid for expenses (except rent and interest)	40,000
Rent prepaid on a leased building for 18 months beginning December 1	45,000
Prepaid interest on a bank loan, paid on December 31 for the next 3 months	5,000

Calculate Yolanda's income from her business for this calendar year.

If an amount is zero, enter "0". If required, in your computations round any division to five decimal places and round final answers to the nearest dollar.

Line Item Description	Amount
Sales income
Expenses:
Expenses (except rent and interest)
Rent
Interest
Net income