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Interest on a CD that has not matured yet of $20. How much taxable
interest income must they report on their 2013 tax return? (4 pts)
4. Explain what a Cafeteria Plan is (hint: it has nothing to do with
what you eat between classes :-) ). (5 pts)
Chapter 6
5. Explain the limitations placed on the deductibility of Business
Gifts? What code section dictates this treatment? (5 pts)
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ACCT 553 Week 3 Homework ES (Quiz, Set 1)
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1. (TCO A) A taxpayer may litigate a tax dispute without first paying
the tax in the:
2. (TCO F) A business bad debt is deductible for tax purposes as a(n):
3. (TCO I) Under the cash method of tax accounting, tax deductions
are generally taken when:
4. (TCO A) Which of the following constitutes tax evasion?
5. (TCO C) Which of the following items is not subject to federal
income tax?
6. (TCO B) Sam owes Bob $8,000. Bob cancels (forgives) the debt. The
cancellation is not a gift, and Sam is bankrupt. Which of the following
statements is correct concerning the impact of this transaction?