QUESTION 45

1. Employees of Wing & Prayer Airlines who fly to Madrid stand-by on otherwise empty seats have no taxable income for the value of the transportation.

   True

   False

QUESTION 46

1. Individuals may receive a 6-month automatic extension to file their tax return; that is, no explanation is required as long as the proper form is filed by the due date.

   True

   False

QUESTION 47

1. Quan operates an illegal game room in Houston. He files a tax return claiming deductions as follows: Rent $10,000, Supplies $5,000, Fines paid to the city $12,000, Bribes paid to police officers $8,000. The IRS should allow Quan to deduct

   		$0
   		$10,000
   		$15,000
   		$33,000
   		$35,000