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Question 22 of 25. Boris is single and earns wages of $350,000. In Tax Year 2021, he also owns a sole proprietorship with $210,000 of

Question 22 of 25.

Boris is single and earns wages of $350,000. In Tax Year 2021, he also owns a sole proprietorship with $210,000 of income and $480,000 of allowed deductions ($270,000 loss). Boris has enough tax basis to cover the loss and is considered at risk for the loss amount, and he materially participates in the activity. What is the amount of excess business loss he will carry forward?

$10,000

$80,000

$260,000

$270,000

Question 24 of 25.

Choose the response that best describe a correspondence audit? A correspondence audit is:

Not the most common type of audit.

Reserved for the most complicated business situations.

The simplest and most common form of audit.

Used when the issues under examination require analysis beyond verification of records.

Question 25 of 25.

Choose the response that best describes the purpose of the balance sheet? A balance sheet:

Provides detailed information about a business's assets, liabilities, and shareholders' equity at a fixed point in time.

Reports a business's inflows and outflows of cash.

Shows how much money the business earned over a specific time period and also shows the costs and expenses associated with earning that money.

Shows the generally accepted accounting principles.

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