Ruby Diaz is a commissioned salesperson. She is a cash-method taxpayer. At the end of 2016, her earnings for the year were $75,000. During the year, she also received $10,000 in advances on future commissions and repaid $8,000. How much income should Ruby report for 2016?

Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?

A) 50% of his health insurance costs can be deducted from his gross income B) 75% of his health care costs can be paid with pre-tax income C) 100% of his health insurance costs can be deducted from his gross income D) 100% of his health insurance costs can be paid with tax credits

Critics who assert that the marketing system promotes too much interest in material possessions are most likely concerned that the result of successful marketing will be ________

A) high-pressure selling tactics B) unsustainable overconsumption C) perceived obsolescence D) planned obsolescence E) deceptive pricing