Which of the following is the most common type of audit for an individual taxpayer who conducts no significant business activities?
A. Service center audit
B. Office audit
C. Correspondence audit
D. Telephone aduit
E. Field audit
Ans: C. Correspondence audit
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Karen is studying the potential for selling her company's products in China. As part of her analysis, she is assessing the number, types and availability of wholesalers and retailers. Karen is studying the country's
A. Natural conditions B. Technological feasibility C. Social and cultural norms D. Distribution structure E. Legal and political constraints
An asset was purchased three years ago for $100,000 and can be sold for $40,000 today. The asset has been depreciated using the MACRS 5-year recovery period and the firm pays 40 percent taxes on both ordinary income and capital gain
(a) Compute recaptured depreciation and capital gain (loss), if any. (b) Find the firm's tax liability.