1. While researching a tax question for a client you locate a case with the following citation: 776 F. 2d 1428. You believe this case will be very helpful to your client's position, however, you want to determine whether any other courts have cited the case "unfavorably". How many courts have cited the case unfavorably? Note: "Distinguished" is not the same as "unfavorably".

a. 21.

b. Zero.

c. 23.

d. None of the above.

2. Jane, one of your clients, won $1,000,000 from the Kentucky lottery in March of this year. Jane will receive $40,000 per year for twenty-five year, beginning in the current year. In addition, in the current year, Jane spent $1,200 on purchases of lottery tickets. Jane wants to know how much she will have to include in gross income this year, and whether she can deduct any of her $1,200 expenses. What do you tell her?

a. $1,000,000 and her expenses are not deductible.

b. $1,000,000 and her expenses are deductible as miscellaneous itemized deductions.

c. $40,000 and her expenses are not deductible.

d. $40,000 and her expenses are deductible as miscellaneous itemized deductions.