Which of the following statements about the tax consequences of gambling is true?
A. Gambling winnings are taxable, but gambling losses are not deductible.
B. Gambling losses are an above-the-line deduction.
C. Gambling winnings are not taxable, and gambling losses are not deductible.
D. Gambling losses are deductible as itemized deductions only to the extent of gambling winnings.
Answer: D
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Leonardo's accountant told him about contribution margin ratios, and Leonardo understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. What is the amount of revenue Leonardo should earn each month to break even? (Round your answer to the nearest dollar.)
Leonardo was a professional classical guitarist until a motorcycle accident left him disabled. After long
months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish
guitars. The guitars sell for $700, and the fixed monthly operating costs are as follows:
A) $8430
B) $5620
C) $4833
D) $4287
The auditor's plan to examine interest-bearing debt most likely will include steps that require:
A. Vouching borrowing and repayment transactions. B. Comparing the book value of the debt to its year-end market value. C. Verifying the proper presentation of the debt through confirmation. D. Inspecting the accounts payable subsidiary ledger for unrecorded interest-bearing debt.
Mega Corporation, the bailor, negotiates a bailment agreement with Huge Corporation, the bailee. Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement. Later, Huge Corporation negligently (ordinary negligence, not gross negligence) damages the property which is the subject of the bailment. Most courts will allow Huge Corp to stand
behind its exculpatory clause and deny liability. a. True b. False Indicate whether the statement is true or false
The branch of law that consists of legal rules that define the authority and structure of hundreds of administrative agencies is known as:
a. administrative law b. tort law c. legislative delegation law d. agency law e. business law