Answer all questions and problems appearing on this examination under rules governing federal income taxation. Unless instructed otherwise, assume the relevant year to be $2023.$

True or False

$16.$ A business bad debt is deductible only if the debt is completely worthless.

$17.$ Individual income tax laws were enacted by both Massachusetts and Virginia while they were colonies of England.

$18.$ An asset with a one year holding period will be classified as short$-$term for federal income tax purposes.

$19.$ If an individual receives a distribution of taxable stock rights, the basis of the rights will be their market value at the date of distribution.

$20.$ If the House of Representatives and the Senate each pass a revenue bill, but the two versions differ in a substantive way, a Joint Conference Committee Committee considers the two versions and arrives at a compromise bill, which is then sent to each of the legislative houses for a final vote.

$21.$ A deduction for a qualifying IRA contribution is allowable on Form $1040$ only if the individual is itemizing his$/$her deductions.

$22.$ A nonbusiness bad debt, when recognized, is always classified as a short$-$term capital loss for federal income tax purposes.

$23.$ An individual who is a resident of Canada, but who is neither a citizen nor a national of the United States, may not qualify as a dependent of a United States citizen.

$24.$ Regarding a sale or exchange, the "amount realized" is defined for federal income tax purposes as the selling price reduced by the seller's basis for the asset sold.

$25..$For purposes of qualifying as head of household, the costs of maintaining a household do not include the cost of medical care for the applicable dependent.

$26.$ For federal income tax purposes, income will be taxed to the individual who earned it$,$ unless the individual assigns the income to another party.

$27.$ A small cash stipend, $$25$ for example, given by an employer to an employee at Christmas must be reported as gross income by the recipient employee.

$28.$ Dividends received in excess of the cumulative amount of net premiums paid on a fully paid up life insurance policy generally are included in gross income of the policy holder..

$29.$ To be classified as a "qualifying child, an individual must have the same place of abode as the taxpayer parent for the full tax year in question.