Question 17 4 pts B is employed by ABC Accounting as an auditor. In order to complete the audit of a client, ABC Accounting required that the members of the audit team work overtime for one week. ABC gave each member of the audit team $40 each evening so that they could purchase dinner at a nearby restaurant and return to the audit as quickly as possible. Given this information, the cash received by the audit team would likely: Be taxable O Be 50% taxable Be taxable at capital gains rates O Not be taxable O Deductible by the employees even if the payments were not included in the employee's income Question 18 4 pts Lynn qualifies to use the Head of Household filing status. She is 64 years old and uses the standard deduction. Her taxable income for 2020 was $102,000. Her tax liability would be: None of the answer are correct $17 118 O $18,559 $18,079 $16.638 4 pts Question 19 Karl and Kim seek your advice. They ask you how much tax they would have saved if they had bought a home at the beginning of 2020. They give you the following information: Additional itemized deductions if the home had been purchased would have been $40,000. They used the standard deduction on their return. Assume Karl and Kim were in the 32% tax rate. Given this information, the amount of tax they would have saved would have been: O $12,400 O $12.800 $4,864 $5.952 $8.832 Question 20 4 pts Wis 50 years old and is single. He is employed as an engineer by X Corporation. His salary from the corporation was $110,000. W uses the standard deduction. W also races automobiles. Financial information related to his racing activity is shown below: Prize money for winning races $1,000 Gas, oil, repairs, insurance, travel expenses ($5,000) State property taxes on the racing vehicle ($400) Assume the auto racing activity is a business. W's AGI for the year would have been: O $95.600 The correct answer is not shown O $110,000 O $106,600 O $105.600