True or False?

1. For a business using the cash basis of accounting for income taxes, the adjusted basis of accounts receivable is normally zero in amount. 2. A mere decline in value or other unrealized loss cannot be deducted on Form 1040. 3. Full worthlessness of a debt must be proven in order to claim a non-business bad debt deduction 4. A loss incurred on the sale of a taxpayer's personal residence is not deductible. 5. Self employed taxpayers deduct business travel expenses for adjusted gross income as trade or business expenses. 6. The portion of an employee's salary deemed "unreasonable" may be considered a dividend distribution to an employee who is also a shareholder of the corporation. 7. Taxpayers cannot deduct the costs of tickets to any entertainment activity or facility regardless of whether or not the taxpayer's attendance at the activity is related to business