Which of the following items is not a capital asset in the hands of the taxpayer？（)

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

on an investment decision.Clark wants to invest $10,000 in long-term bonds.Clark can obtain a 6% return by investing in 10-year Ford Motors' bonds.What is the minimum interest rate that Clark should demand from an investment in State of Tennessee bonds of identical risk and duration?()

A、4.08%.

B、4.68%.

C、9.0%.

D、10.00%

s of all of its employees.Because of large deductible levels and limitations on the payment of certain medical expenses, the basic health insurance policy does not cover all medical costs.During the current year, Bolero adopted a Flexible Benefits Plan that employees can contribute into to pay for any medical expenses not covered by insurance.Hannah pays $2,650 into the plan during the current year.Premiums paid by Bolero for Hannah's medical insurance were $5,000.

I.Hannah's gross income from her Bolero salary is reduced by the $2,650 payment into the Flexible Benefits Plan.

II.Amounts paid for medical costs by the medical insurance policy are excluded from Hannah's gross income.

()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

ke to reinvest a $10,000, 6%, certificate of deposit in a tax-exempt bond.What is the minimum rate of interest Norma would have to receive to make the tax exempt-bond a more profitable investment?()

A、4.10%

B、6.00%

C、8.40%

D、9.00%

mpany copy machines.What concept, construct, or doctrine helps explain why the benefit received is not taxable to Sanchez employees?()

A、Administrative Convenience Concept

B、Assignment of Income Doctrine

C、Arms-length Transaction Concept

D、Ability To Pay Concept

E、Pay As You Go Concept

A、Personal residence

B、Land used for business parking lot

C、Pickup truck used for personal transportation

D、Corporate bonds held for investment purposes

E、A hand-written letter by Dwight Eisenhower held in a private collection

s Design reports taxable income of $70,000 and pays $60,000 in dividends to shareholders before considering payments to Carmen.Carmen receives a $50,000 salary.What is Carmen's income from Fitness Design?()

A、$6,000

B、$7,000

C、$50,000

D、$56,000

E、$57,000

edroom suite from Foster's for $8, 000.The sticker price is $11,000.Foster's policy is to "discount" all customer purchases for up to $1,000 off of the sticker price for purchases over $10,000.What is the tax treatment of Stephen's furniture purchase?

I.Stephen does not need to account for the furniture purchase since it is for his personal use.

II.Stephen has imputed income because of the nature of the furniture purchase.

()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

while diving among the coral reefs off Key West, Florida.The US Customs and the DEA denied knowledge of the cash, so Marta keeps it.

I.Recognition will not occur because the windfall would not be considered as "derived from capital or from labor."

II.The All-inclusive Income Concept explains the recognition of the cash as income.

()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

arch 1 of the current year.Taxable income for the current year is $120, 000.What is Santana Corporation’s income tax liability?()

A、$0

B、$3,000

C、$18,000

D、$25,200

E、$40,800