Solved by verified expert :68. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q68
Which of the following statements about an acquiescence is correct?
a.
An acquiescence is issued in the Federal
Register.
b. Acquiescences are published only for
certain regular decisions of the U.S. Tax Court.
c. An acquiescence is published in the Internal Revenue Bulletin.
d. The IRS does not issue acquiescences
to adverse decisions that are not appealed.
e. All of the above are correct.
69. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q69
Which is a primary source of tax law?
a.
J.W. Yarbo v. Comm., 737 F. 2d 479
(CA-5, 1984).
b. Article by a Federal judge in Yale Law Review.
c. Determination letter.
d. Letter ruling.
e. All of the above are primary sources.
70. CHAPTER
1—UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q70
What is the wherewithal to pay concept? Give an example.
71. CHAPTER
1—UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q71
Explain the function of Temporary Regulations.
72. CHAPTER
1—UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q72
Explain the Golsen doctrine.
73. CHAPTER
1—UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q73
What are the key components of tax planning?
74. CHAPTER
1—UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q74
Explain simulations on the CPA examination.
75. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Questio
Olga’s proprietorship earned a net profit of $95,000 during the year and she
withdrew $70,000 of this profit. Olga must report $70,000 net income from the
proprietorship on her individual income tax return (Form 1040).
a.
True
b. False
76. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Quest 2
Rose is a 50% partner in Wren Partnership. During the year, Wren earned net
profit of $100,000 ($210,000 gross income – $110,000 operating expenses) and
distributed $20,000 to each partner. Rose must report Wren Partnership profit
of $20,000 on her Federal income tax return.
a.
True
b. False
77. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Quest 3
Rajib is the sole shareholder of Robin Corporation, a calendar year S
corporation. Robin earned net profit of $350,000 ($520,000 gross income –
$170,000 operating expenses) and distributed $80,000 to Rajib. Rajib must
report Robin Corporation profit of $350,000 on his Federal income tax return.
a.
True
b. False
