The AICPA guideline regarding a minimum tax gap refers to structuring a tax to minimize:

a.Ambiguity.

b.Noncompliance.

c.The effect of tax rules on taxpayer decision making.

d.The collection of taxes.

e.Taxes due.

To avoid a gift tax, a person can gift property to a relative by selling it to him or her at a very low cost.

True

False

On December 31, 2018, Elena and Edgardo would like to give the maximum amount possible to their five married children, their spouses, and their six grandchildren. Under the Federal gift tax annual exclusion, and assuming that Elena and Edgardo elect gift splitting, how much can they give their family (in total) for 2018?

a.$70,000

If David and Louisa are in the same tax jurisdiction that utilizes a proportional tax structure and David pays $1,200 tax on $20,000 worth of income, how much tax will Louisa pay on $25,000?

a.$500

b.$0

c.$1,840

d.$25,000

e.$1,500

Which of the following organizations has issued enforceable pronouncements titled "Statements on Standards for Tax Services" as a part of its Code of Professional Conduct?

a.SEC

b.FASB

c.Department of Treasury

d.American Institute of CPAs

e.IRS

Mason did not file for an extension and files his tax return on August 9. The balance of his tax owed is $3,000. Disregarding the interest element, for how much should he write a check to cover what he owes?

a.$3,000

b.$2,460

c.$3,540

d.$3,660

e.$3,600

b.$14,000

Jacob is a farmer, and the state condemns land that belongs to him. The condemned land cost $150,000, but the state pays him $160,000. His farm as a whole is worth $300,000. Shortly after receiving the $160,000, Jacob buys more land for $160,000. What is Jacob's realized gain?

a.$10,000

b.$0

c.$160,000

d.$300,000

e.$150,000

c.$224,000

d.$480,000

e.$140,000