1.When canceled debt is jointly held by both spouses:

A. Each spouse will be responsible for one-half of the canceled debt, and they will each complete a Insolvency Worksheet with all of their separate liabilities and assets only.

B. They may choose to file married filing separately, as this may provide a greater reduction of canceled debt income.

C. A single Insolvency Worksheet can be completed showing all of their liabilities and assets.

D. Each spouse will be responsible for one-half of the canceled debt, and they will each complete a Insolvency Worksheet with one-half of their joint liabilities and assets.

2.Which of the following is an example of an exempt organization that may be subject to unrelated business income tax?

A. A college bookstore that sells collegiate clothing.

B. A hospital gift shop that sells flowers.

C. A church that rents its non-debt financed basement to a for-profit organization monthly

D. An animal shelter that sells pet food.

3.Which of the following is excluded from unrelated business income of a social club?

A. Dividends.

B. Real property rents.

C. Personal property rents.

D. Dues from members.