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that Anita's mar calculate her after-tax cash low from A. 560,000 C $23.000 wald, LLC, operates as a partnership for tax purposes 0,000 and Partner Dean received distributions Partner Dean's share of the earnings 000. Partmer Dean will pay self em of $125,000 Partner Dean wil p A $350,000 B. $125,000 D. SO- $225,000 Krista Denis operates a table uni will Krista not pa income tax B. Social Security tax C Medicare tax dividend 4. Chris Keeley sold the sole asset, goodwill, of his profitable proprietorship, for $200,000 (basis $-o-). What is the character of the $200.000 gain A. B. capital D. recapture C. Gerrit engaged in a current-year transaction generating $50,000 cash but only $40.00o taxable marginal tax rate is 40%, compute his after-tax cash flow from the transaction. A. $20,000 B. $24,000 C $34,000 D. $40,000 Which of the following statements about marginal tax ra A A taxpayer's marginal rate can rise as ta B. As the marginal rate increases, the tax cost of an income-generating transaction decreh C As the marginal rate increases, the tax savings from a deduction increases 7. Ramona, Inc, an S corporation, earns taxable income of $1 milion and makes distributios shareholder. The shareholder's basis was $4 million at the beginning of the year. w shareholder and what is the shareholder's basis at the end of the year, respectively A $750,000; $4 million B. $1 million: $4 million C.$1 million: 4.75 million How mu $750, tion, a regular corporation received dividends of $10,000 from SunRun C 8. Esparza Corpora 1 percent of Sun Run. Because of these divi traded income increases by how much? A. $10,000 omstock Corpor corporation. Esparza owns less than B. C. $5,000 ation earned net taxable income of $2.000,000 in 2018. The corporati 000 to its sole shareholder, who had other income of $500,000. What is D. 42 the earnings of $2,000,000? A. 36.8 percent B. 41 percent C 50 percent 10. Whic h of the following statements about tax avoidance and tax evasion is false? A Tax avoidance is legal, while tax evasion is illegal. B.Tax evasion is a federal C. The difference between avoidance and evasion is clearly defined in the tax lavw D. Taxpayers should not regard tax avoidance as unethical. 11. Edelin structures a transaction to shift income from her New York business to her N B. Time period variable C. Jurisdiction variable D 12. Dominique structures a transaction to convert a capitalizable amount to a current tax planning strategy may be taking advantage of the: A. Entity variable planning strategy may be taking advantage of the A Entity variable B. Time period variable C. Jurisdiction variable Income from a transaction must be taxed to the person who receives the cash B. Income from a transaction must be taxed to the person who reports the trans C. Income from a transaction must be taxed to the person that earns the income D. None of the above 13. The assignment of income doctrine holds that: 4. Which of the following statements about methods of accounting is false? A. The IRS has the right to determine if a taxpayer's method of accounting cle B. A taxpayer must request permission from the IRS to change its method of a C A taxpayer engaged in more than one business can use a different method D. Taxpayers must use the same method of accounting to compute taxable in that Anita's mar calculate her after-tax cash low from A. 560,000 C $23.000 wald, LLC, operates as a partnership for tax purposes 0,000 and Partner Dean received distributions Partner Dean's share of the earnings 000. Partmer Dean will pay self em of $125,000 Partner Dean wil p A $350,000 B. $125,000 D. SO- $225,000 Krista Denis operates a table uni will Krista not pa income tax B. Social Security tax C Medicare tax dividend 4. Chris Keeley sold the sole asset, goodwill, of his profitable proprietorship, for $200,000 (basis $-o-). What is the character of the $200.000 gain A. B. capital D. recapture C. Gerrit engaged in a current-year transaction generating $50,000 cash but only $40.00o taxable marginal tax rate is 40%, compute his after-tax cash flow from the transaction. A. $20,000 B. $24,000 C $34,000 D. $40,000 Which of the following statements about marginal tax ra A A taxpayer's marginal rate can rise as ta B. As the marginal rate increases, the tax cost of an income-generating transaction decreh C As the marginal rate increases, the tax savings from a deduction increases 7. Ramona, Inc, an S corporation, earns taxable income of $1 milion and makes distributios shareholder. The shareholder's basis was $4 million at the beginning of the year. w shareholder and what is the shareholder's basis at the end of the year, respectively A $750,000; $4 million B. $1 million: $4 million C.$1 million: 4.75 million How mu $750, tion, a regular corporation received dividends of $10,000 from SunRun C 8. Esparza Corpora 1 percent of Sun Run. Because of these divi traded income increases by how much? A. $10,000 omstock Corpor corporation. Esparza owns less than B. C. $5,000 ation earned net taxable income of $2.000,000 in 2018. The corporati 000 to its sole shareholder, who had other income of $500,000. What is D. 42 the earnings of $2,000,000? A. 36.8 percent B. 41 percent C 50 percent 10. Whic h of the following statements about tax avoidance and tax evasion is false? A Tax avoidance is legal, while tax evasion is illegal. B.Tax evasion is a federal C. The difference between avoidance and evasion is clearly defined in the tax lavw D. Taxpayers should not regard tax avoidance as unethical. 11. Edelin structures a transaction to shift income from her New York business to her N B. Time period variable C. Jurisdiction variable D 12. Dominique structures a transaction to convert a capitalizable amount to a current tax planning strategy may be taking advantage of the: A. Entity variable planning strategy may be taking advantage of the A Entity variable B. Time period variable C. Jurisdiction variable Income from a transaction must be taxed to the person who receives the cash B. Income from a transaction must be taxed to the person who reports the trans C. Income from a transaction must be taxed to the person that earns the income D. None of the above 13. The assignment of income doctrine holds that: 4. Which of the following statements about methods of accounting is false? A. The IRS has the right to determine if a taxpayer's method of accounting cle B. A taxpayer must request permission from the IRS to change its method of a C A taxpayer engaged in more than one business can use a different method D. Taxpayers must use the same method of accounting to compute taxable in

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