Ophra is a cash-basis taxpayer who is employed in the publishing industry. This year her employer informed her that because of her outstanding performance she is entitled to a free world cruise. Ophra asked her employer to issue the cruise tickets to her parents, and he complied with this request. Identify the principle that will determine whether Ophra or her parents are taxed on the value of the cruise tickets.
A. Constructive receipt
B. Return of capital principle
C. Wherewithal to pay
D. Assignment of income
E. All of these choices are correct.
Answer: D
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Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Saying “I’m really happy today” while smiling is an example of how nonverbal messages complement verbal messages. 2. Nonverbal codes are universal and do not vary across cultures. 3. Your voice can reveal our emotions, our thoughts, and the type of relationships you have with others. 4. The pointing gesture, “come here” gesture, and “stay away” gesture have very different interpretations across cultures. 5. Gestures that are used to control the turn-taking in conversations are known as regulators.
William and Charlotte Collins divorced in November of Year 1. William moved out and Charlotte remained in their house with their 10-month-old daughter, Autumn. Diana, Charlotte's mother, lived in the home and acted as Autumn's nanny for all of Year 1. William provided 70 percent of Autumn's support, Diana provided 20 percent, and Charlotte provided 10 percent. When the time came to file their tax returns for Year 1, William, Charlotte, and Diana each wanted to claim Autumn as a dependent. Their respective AGIs for Year 1 were $50,000, $35,000, and $52,000. Who has priority to claim Autumn as a dependent?
A. Charlotte. B. William. C. Diana. D. They must negotiate amongst themselves.
When there is an unrealized loss on trading investments, the ________ will decrease
A) total equity B) cash C) total liabilities D) long-term investments