TRUE OR FALSE QUESTIONS

16. Taxpayers may deduct the cost of a business meal for a client as long as the surroundings are conducive to a business discussion. A business discussion need not transpire before, after, or during the meal. TRUE OR FALSE

22. A cash basis taxpayer may deduct all prepaid interest in the year it is paid. TRUE OR FALSE

23. Fees paid a lobbyist to persuade the U.S. Congress to vote against a ballot proposal would be deductible if the proposal would adversely affect the taxpayers business. TRUE OR FALSE

24. A taxpayer may deduct education courses as business expenses even if the courses meet the minimum requirements for entry into the taxpayers trade or business. TRUE OR FALSE

27. If an annuitant dies before recovering the entire investment cost basis in the annuity contract, the amount of the unrecovered investment is allowed as an itemized deduction on the taxpayers final income tax return. TRUE OR FALSE

29. 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 OR FALSE

30. The mid-month and mid-quarter conventions apply to depreciable real property. TRUE OR FALSE

32 Political contributions are not deductible. TRUE OR FALSE

35. Compensatory damage awards as a result of physical injuries are excludable from income. TRUE OR FALSE