Need A Tutor?    |   Need Homework Help?                                                                             Help and Support     | Join or Cancel

Which of the following is an intentional tort directed against a person's property?
A) Misappropriation of personal goods
B) Battery that causes fear of imminent an offensive touching
C) Libel that harms one's reputation
Join Now For Answers & Help!
 
Which, if any, of the following statements best describes the history of the Federal income tax?
Join Now For Answers & Help!
 
Which, if any, is not one of Adam Smith's canons of taxation?
Join Now For Answers & Help!
 
Which, if any, of the following taxes are proportional (rather than progressive)?
Join Now For Answers & Help!
 
Which, if any, of the following transactions will increase a taxing jurisdiction's revenue from the ad valorem tax imposed on real estate?
Join Now For Answers & Help!
 
The residents of a suburban region are unable to enjoy fresh air due to the foul smell coming from an unauthorized tannery located nearby. In this case, the owners of the tannery can be sued for ________.
Join Now For Answers & Help!
 
Michael, the owner of a dry-cleaning store, refuses to return an expensive tuxedo to his customer Daniel.
He keeps the tux for a day as he mistakenly believes that Daniel has not paid for the services rendered in the past three months.
These facts are an example of a(n) ________.
Join Now For Answers & Help!
 
Which, if any, of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?
Join Now For Answers & Help!
 
Which of the following describes the tort of nuisance?
A) Nuisance occurs when an individual's name or image is inadvertently used without permission for commercial purposes.
B) Nuisance is a form of defamation that is directed against a competitor's product.
C) Nuisance arises when someone is unable to enjoy her land is impaired because of some tortious interference.
D) Nuisance involves third party's intentional interference with a person's right to fully enjoy his or her personal property.
 
Which, if any, of the following is a typical characteristic of an ad valorem tax on personalty?
Join Now For Answers & Help!
 
Federal excise taxes that are no longer imposed include:
a. Tax on air travel.
b. Tax on wagering.
c. Tax on the manufacture of sporting equipment.
d. Tax on alcohol.
e. None of these.
 
Taxes not imposed by the Federal government include:
Join Now For Answers & Help!
 
Taxes levied by both states and the Federal government include:
Join Now For Answers & Help!
 
Taxes levied by all states include:
Join Now For Answers & Help!
 
A use tax is imposed by:
Join Now For Answers & Help!
 
Burt and Lisa are married and live in a common law state. Burt wants to make gifts to their four children in 2014. What is the maximum amount of the annual exclusion they will be allowed for these gifts?
Join Now For Answers & Help!
 
Property can be transferred within the family group by gift or at death. One motivation for preferring the gift approach is:
Join Now For Answers & Help!
 
Indicate which, if any, statement is incorrect. State income taxes:
Join Now For Answers & Help!
 
State income taxes generally can be characterized by:
Join Now For Answers & Help!
 
A characteristic of FICA is that:
Join Now For Answers & Help!
 
A characteristic of FUTA is that:
Join Now For Answers & Help!
 
Rachel's neighbor, Ned, is away on a week-long tour. Rachel sees smoke rising from Ned's house one day and, fearing a possible outbreak of fire, breaks in through the front door only to find that the smoke was from outside and not from within the house as he had thought. In this case, Rachel can avail the defense of ________.
Join Now For Answers & Help!
 
The U.S. (either Federal, state, or local) does not impose:
Join Now For Answers & Help!
 
The proposed flat tax:
Join Now For Answers & Help!
 
A VAT (value added tax):
a. Is regressive in its effect.
b. Has not proved popular outside of the U.S.
c. Is not a tax on consumption.
d. Is used exclusively by third world (less developed) countries.
e. None of these.
Answer:           A
 
Characteristics of the "Fair Tax" (i.e., national sales tax) include which, if any, of the following:
Join Now For Answers & Help!
 
In terms of probability, which of the following taxpayers would be least likely to be audited by the IRS?
Join Now For Answers & Help!
 
105. Which of the following is a characteristic of the audit process?
a. Most taxpayer audits involve "special" agents.
b. Self-employed taxpayers are less likely to be selected for audit than employed taxpayers.
c. Less important issues are handled by means of a correspondence audit.
d. If a taxpayer disagrees with the IRS auditor's finding, the only resort is to the courts.
e. None of these.
Answer:              C
 
David files his tax return 45 days after the due date. Along with the return, David remits a check for $40,000 which is the balance of the tax owed. Disregarding the interest element, David's total failure to file and to pay penalties are:
a. $400.
b. $3,600.
c. $4,000.
d. $4,400.
e. None of these.
Answer:              C
 
All but which of the following are requirements for a plaintiff to establish a successful negligence claim?
A) The plaintiff must establish that the defendant owed the plaintiff a duty of due care.
B) The plaintiff must show that the defendant breached its duty in a strictly liable manner.
C) The plaintiff must show that the defendant's actions were sufficiently connected to the plaintiff's injuries.
D) The plaintiff must establish that she was injured as a result of the defendant's unreasonable conduct.
Answer:              B
 
A characteristic of the fraud penalties is:
a. When negligence and civil fraud apply to a deficiency, the negligence penalty predominates.
b. Criminal fraud can result in a fine and a prison sentence.
c. The criminal fraud penalty is 75% of the deficiency attributable to the fraud.
d. The IRS has the same burden of proof in the case of criminal fraud than with civil fraud.
e. None of these.
Answer:              B
 
Regarding proper ethical guidelines, which (if any) of the following is correct?
a. The use of client estimates in preparing a return may be acceptable.
b. Under no circumstances should a question on a tax return be left unanswered.
c. If a client has made a mistake in a prior year's return and refuses to correct it, you should withdraw from the engagement.
d. If the exact amount of a deduction is not certain, it should be recorded as an odd amount so as to increase the appearance of greater certainty.
e. None of these.
Answer:           A
 
Both economic and social considerations can be used to justify:
a. Favorable tax treatment for accident and health plans provided for employees and financed by employers.
b. Disallowance of any deduction for expenditures deemed to be contrary to public policy (e.g., fines, penalties, illegal kickbacks, bribes to government officials).
c. Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.
d. Allowance of a deduction for state and local income taxes paid.
e. None of these.
Answer:              C
 
Social considerations can be used to justify:
a. Allowance of a credit for child care expenses.
b. Allowing excess capital losses to be carried over to other years.
c. Allowing accelerated amortization for the cost of installing pollution control facilities.
d. Allowing a Federal income tax deduction for state and local sales taxes.
e. None of these.
Answer:           A
 
The following doctrine permits the court in some cases to infer the
defendant's negligence even though that negligence cannot be proved.
A) The doctrine of res ipsa loquitur
B) The doctrine of res judicata
C) The doctrine of strict liability
D) The doctrine of products liability
Answer:           A
 
Allowing a domestic production activities deduction for certain manufacturing income can be justified:
a. As mitigating the effect of the annual accounting period concept.
b. As promoting administrative feasibility.
c. By economic considerations.
d. Based on the wherewithal to pay concept.
e. None of these.
Answer:              C
 
Provisions in the tax law that promote energy conservation and more use of alternative (non-fossil) fuels can be justified by:
a. Political considerations.
b. Economic and social considerations.
c. Promoting administrative feasibility.
d. Encouragement of small business.
e. None of these.
Answer:              B
 
Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?
a. Nonrecognition of gain allowed for involuntary conversions.
b. Net operating loss carryback and carryover provisions.
c. Carry over of excess charitable contributions.
d. Use of the installment method to recognize gain.
e. Carry over of excess capital losses.
Answer:           A
 
The following doctrine permits the court in some cases to infer the defendant's negligence even though that negligence cannot be proved.
A) The doctrine of res ipsa loquitur
B) The doctrine of res judicata
C) The doctrine of strict liability
D) The doctrine of products liability
Answer:           A
 
Which of the following tests imposes a duty on a manufacturer to design its products so that they are safe not only for their intended use but also for any reasonably foreseeable use?
A) Chain of production test
B) Risk-utility test
C) Consumer expectations test
D) Balancing-utility test
Answer:           C
 
Which, if any, of the following provisions of the tax law cannot be justified as promoting administrative feasibility (simplifying the task of the IRS)?
a. Penalties are imposed for failure to file a return or pay a tax on time.
b. Prepaid income is taxed in the year received and not in the year earned.
c. Annual adjustments for indexation increases the amount of the
standard deduction allowed.
d. Casualty losses must exceed 10% of AGI to be deductible.
e. A deduction is allowed for charitable contributions.
Answer:              E
 
115. A landlord leases property upon which the tenant makes improvements. The improvements are significant and are not made in lieu of rent. At the end of the lease, the value of the improvements are not income to the landlord. This rule is an example of:
a. A clear reflection of income result.
b. The tax benefit rule.
c. The arm's length concept.
d. The wherewithal to pay concept.
e. None of these.
Answer:           D
 
46. The Internal Revenue Code was first codified in what year? a. 1913
b. 1923
c. 1939
d. 1954
e. 1986
Answer:              C
 
Tax bills are handled by which committee in the U.S. House of Representatives?
a. Taxation Committee
b. Ways and Means Committee
c. Finance Committee
d. Budget Committee
e. None of these
Answer:              B
 
Federal tax legislation generally originates in what body?
a. Internal Revenue Service
b. Senate Finance Committee
c. House Ways and Means Committee
d. Senate Floor
e. None of these
Answer:              C
 
Subtitle A of the Internal Revenue Code covers which of the following taxes?
a. Income taxes
b. Estate and gift taxes
c. Excise taxes
d. Employment taxes
e. All of these
Answer:           A
 
In § 212(1), the number (1) stands for the:
a. Section number.
b. Subsection number.
c. Paragraph designation.
d. Subparagraph designation.
e. None of these.
Answer:              C
 
Which of these is not a correct citation to the Internal Revenue Code?
a. Section 211
b. Section 1222(1)
c. Section 2(a)(1)(A)
d. Section 280B
e. All of these are correct cites.
Answer:              E
 
Which of the following is not an administrative source of tax law?
a. Field Service Advice
b. Revenue Procedure
c. Technical Advice Memoranda
d. General Counsel Memorandum
e. All of these are administrative sources.
Answer:              E
 
53. Which of the following sources has the highest tax validity?
a. Revenue Ruling
b. Revenue Procedure
c. Regulations
d. Internal Revenue Code section
e. None of these
Answer:           D
 
Which of the following statements is true of a false light claim?
A) It is wrongfully using a celebrity's name or likeness in a product.
B) Published claims about another that may show someone in a false light must be highly offensive to the reasonable person.
C) Disclosure of private facts about someone must be highly offensive to the reasonable person.
D) It involves a substantially unreasonable injury to one's reputation rather than emotional well-being.
Answer:           B
 
54. Which of the following types of Regulations has the highest tax validity?
a. Temporary
b. Legislative
c. Interpretive
d. Procedural
e. None of these
Answer:              B
 
55. Which statement is not true with respect to a Regulation that interprets the tax law?
a. Issued by the U.S. Congress.
b. Issued by the U.S. Treasury Department.
c. Designed to provide an interpretation of the tax law.
d. Carries more legal force than a Revenue Ruling.
e. All of these statements are true.
Answer:           A
 
Brian has an accident when he misses a stop sign and crashes into another car whose driver is drunk. Despite having sustained $10,000 worth injuries, Brian is able to recover only $7,000 as his own negligence is found to have contributed 30 percent to the injury. The type of negligence defense most likely availed in this case is
Join Now For Answers & Help!
 
In addressing the importance of a Regulation, an IRS agent must:
a. Give equal weight to the Code and the Regulations.
b. Give more weight to the Code rather than to a Regulation.
c. Give more weight to the Regulation rather than to the Code.
d. Give less weight to the Code rather than to a Regulation.
e. None of these.
Answer:           A
 
Which item may not be cited as a precedent?
a. Regulations
b. Temporary Regulations
c. Technical Advice Memoranda
d. U.S. District Court decision
e. None of these
Answer:              C
 
What statement is not true with respect to Temporary Regulations?
a. May not be cited as precedent.
b. Issued as Proposed Regulations.
c. Automatically expire within three years after the date of issuance.
d. Found in the Federal Register.
e. All of these statements are true.
Answer:           A
 
The historic rule that any contribution by the plaintiff to his or her own harm constitutes a complete bar to recovery is called ________.
A) comparative negligence
B) strict liability
C) assumption of the risk
D) contributory negligence
Answer:           D
 
In many states, a plaintiff who willingly enters a dangerous situation and is injured will be barred from recovery. The central defense for negligence in this case is:
A) contributory negligence.
B) strict liability.
C) comparative negligence.
D) assumption of risk.
Answer:           D
 
What administrative release deals with a proposed transaction rather than a completed transaction?
a. Letter Ruling
b. Technical Advice Memorandum
c. Determination Letter
d. Field Service Advice
e. None of these
Answer:           A
 
Which of the following indicates that a decision has precedential
value for future cases?
a. Stare decisis
b. Golsen doctrine
c. En banc
d. Reenactment doctrine
e. None of these
Answer:           A
 
A taxpayer who loses in a U.S. District Court may appeal directly to the:
a. U.S. Supreme Court.
b. U.S. Tax Court.
c. U.S. Court of Federal Claims.
d. U.S. Circuit Court of Appeals.
e. All of these.
Answer:           D
 
If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?
a. Appropriate U.S. Circuit Court of Appeals
b. U.S. District Court
c. U.S. Tax Court
d. U.S. Court of Federal Claims
e. None of these
Answer:              C
 
63. A jury trial is available in the following trial court:
a. U.S. Tax Court.
b. U.S. Court of Federal Claims.
c. U.S. District Court.
d. U.S. Circuit Court of Appeals.
e. None of these.
Answer:              C
 
A taxpayer may not appeal a case from which court:
a. U.S. District Court.
b. U.S. Circuit Court of Appeals.
c. U.S. Court of Federal Claims.
d. Small Case Division of the U.S. Tax Court.
e. None of these.
Answer:           D
 
Angela, a water sports enthusiast, goes surfing despite warnings of rough weather conditions from lifeguards. Consequently, she is injured because of rough tides. Angela is barred from recovering damages as the lifeguards could not fully perform their duty of preventing harm because of her ________.
A) assumption of risk
B) mistake
C) implied consent
D) express consent
 
If a seller of goods provides a sample or model of the goods which is made a part of the basis of the bargain, a(n) ________ exists.
A) implied warranty
B) express warranty
C) warranty for a particular purpose
D) warranty of merchantability
 
The IRS will not acquiesce to the following tax decisions:
a. U.S. District Court.
b. U.S. Tax Court.
c. U.S. Court of Federal Claims.
d. Small Case Division of the U.S. Tax Court.
e. All of these.
Answer:           D
 
Which publisher offers the Standard Federal Tax Reporter?
a. Research Institute of America
b. Commerce Clearing House
c. Prentice-Hall
d. LexisNexis
e. None of these
Answer:              B
 
Which is presently not a major tax service?
a. Standard Federal Tax Reporter
b. Federal Taxes
c. United States Tax Reporter
d. Tax Management Portfolios
e. All of these are major tax services
 
Which publisher offers the United States Tax Reporter?
a. Research Institute of America
b. Commerce Clearing House
c. LexisNexis
d. Tax Analysts
e. None of these
 
When searching on an online tax service, which approach is more
frequently used?
a. Code section approach
b. Keyword approach
c. Table of contents approach
d. Index
e. All are about the same
Answer:              B
 
Which, if any, of the following is a deduction for AGI?
a. Contributions to a traditional Individual Retirement Account.
b. Child support payments.
c. Funeral expenses.
d. Loss on the sale of a personal residence.
e. Medical expenses.
Answer:           A
 
Which, if any, of the following is a deduction for AGI?
a. State and local sales taxes
b. Interest on home mortgage
c. Charitable contributions
d. Unreimbursed moving expenses of an employee
e. None of these
Answer:           D
 
Which, if any, of the statements regarding the standard deduction is correct?
a. Some taxpayers may qualify for two types of standard deductions.
b. Not available to taxpayers who choose to deduct their personal and dependency exemptions.
c. May be taken as a for AGI deduction.
d. The basic standard deduction is indexed for inflation but the additional standard deduction is not.
e. None of these.
Answer:           A
 
Which, if any, of the following statements relating to the standard deduction is correct?
a. If a taxpayer dies during the year, his (or her) standard deduction must be prorated.
b. If a taxpayer is claimed as a dependent of another, his (or her) additional standard deduction is allowed in full (i.e., no adjustment is necessary).
c. If spouses file separate returns, both spouses must claim the standard deduction (rather than itemize their deductions from AGI).
d. If a taxpayer is claimed as a dependent of another, no basic standard deduction is allowed.
e. None of these.
Answer:              B
 
During 2014, Marvin had the following transactions:
Salary $50,000
Bank loan (proceeds used to buy personal auto) 10,000
Alimony paid 12,000
Child support paid 6,000
Gift from aunt 20,000
Marvin's AGI is:
a. $32,000.
b. $38,000.
c. $44,000.
d. $56,000.
e. $64,000.
Answer:              B
 
During 2014, Esther had the following transactions:
Salary $70,000
Interest income on Xerox bonds 2,000
Inheritance from uncle 40,000
Contribution to traditional IRA 5,500
Capital losses 2,500
Esther's AGI is:
a. $62,000.
b. $64,000.
c. $67,000.
d. $102,000.
e. $104,000.
Answer:              B
 
During 2014, Sarah had the following transactions:
            Salary $ 80,000
            Interest income on City of Baltimore bonds 1,000
            Damages for personal injury (car accident) 100,000
            Punitive damages (same car accident) 200,000
            Cash dividends from Chevron Corporation stock 7,000
            Sarah's AGI is:
a. $185,000.
b. $187,000.
c. $285,000.
d. $287,000.
e. $387,000.
Answer:           D