Question $1$

With respect to typical sales$/$use tax laws:

a$.$ Exemptions are granted for fuel$-$efficient automobiles.

b$.$ Fees paid for legal services are exempt.

c$.$ Exemptions are granted for purchases of clothing.

d$.$ Restaurant meals are exempt.

Question $2$

The POD Partnership will soon be liquidating the $20\%$ interest of partner Daniel by making a cash distribution of $$200,000$ to him under $736.$ Much of that payment is in return for Daniel$$s share of partnership goodwill. Which of the following conditions would have to be true to increase the portion of that payment that POD could claim as a current deduction?

a$.$ To maximize the partnership$$s deductions under $736,$ a$.,$ b$.,$ and c$.$ would have to be true.

b$.$ The partnership agreement is silent regarding payment of partnership goodwill.

c$.$ The partnership is an entity in which capital is not a material income$-$producing factor.

d$.$ Daniel is treated as a general partner.

Question $3$

Section $482$ is used by the U$.$S$.$ Treasury to:

a$.$ Reallocate income, deductions, etc., to a related taxpayer to minimize tax liability.

b$.$ All of these.

c$.$ Force taxpayers to use arms length transfer pricing on transactions between related parties.

d$.$ Increase information that is reported about U$.$S$.$ corporations with non$-$U$.$S$.$ owners.