Mr. and Mrs. Lester failed to report a $40,540 capital gain on their 2018 Form 1040. The gross income reported on the return was $169,404, and the return was filed on January 20, 2019. What is the last date on which the IRS can assess additional tax for 2018?
What will be an ideal response?
The unreported income does not exceed 25% of the gross income reported on the return. Therefore, the three-year statute of limitation applies, and the IRS can assess additional tax until April 15, 2022.
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How is income from operations determined?
a. By subtracting the cost of goods sold from sales b. By subtracting the total operating expenses from sales c. By subtracting the total operating expenses from gross profit d. By subtracting selling expenses from operating revenues
Answer the following statements true (T) or false (F)
Positive accounting research attempts to explain behavioral relationships in accounting.
If a firm's managers want to maximize stock price, it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.
Answer the following statement true (T) or false (F)
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What will be an ideal response?