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

$1.$ Medical expenses paid by a parent of a child of divorced parents are deductible only by the custodial parent.

$2.$ For income tax purposes, improvements made by a lessee $($tenant$)$ are income to the lessor $($landlord$)$ upon termination of the lease when the premises are returned to the lessor.

$3.$ Cash charitable contributions of less than $$250$ can only be deducted if the taxpayer has a cancelled check evidencing the contribution.

$4.$ A taxpayer whose spouse died during year $20$xl and who hasn't remarried may file his$/$her $20$x$4$ Form $1040$ as a qualifying widow$/$widower if the taxpayer maintains a household with a dependent child or stepchild living in it$.$

$5.$ A Treasury Ruling carries significantly greater weight that a Treasury Regulation

$6.$ During $20$xl$,$ John and Mary Thomas, husband and wife, died simultaneously in an automobile accident. Federal income tax rules will prohibit the filing of a joint Form $1040$ for them for the year of death.

$7.$ A married couple filing a joint Form $1040$ may deduct up to $$6,000$ of net capital loss as long as each of the spouses individually has a net capital loss of at least $$3,000.$

$8.$ If a taxpayer's employer has annually paid and deducted $100\%$ of the total contribution cost to fund the taxpayer's pension, all pension plan payments received by the taxpayer during retirement are excluded from gross income on his$/$her Form $1040.$

$9.$ Unreimbursed employee business expenses may be deducted only by an individual who itemizes his$/$her deductions.

$10.$ A single taxpayer with gross income lower than his$/$her available standard deduction amount will never be required to file a Form $1040$ individual income tax return..

$11.$ If proceeds of a life insurance policy are received upon surrender of the policy and the cost of the policy exceeds the proceeds amount, the owner of the policy may not claim a deduction for the amount of the loss.

$12.$ Investment interest expense may be deducted for AGI to the extent of net investment income: excess interest that cannot be deducted because of this limitation may be carried over indefinitely to future years until deducted.

$13.$ For a potential dependent to be classified as a student, the individual must be a full time student for at least five complete months of the year in question.

$14.$ Under the basic MACRS convention, a machine disposed of during the year is deemed to have been disposed of on the last day of the year of actual disposition

$15.$ Under the "qualifying relative" test, a child who provides over $1/2$ of his$/$her own support for the year in question may not be classified as a dependent under a multiple support agreement.