True/False

1- The fair market value of property or services received in bartering must be included in gross income.

2- Federal income taxes paid by a taxpayer in connection with her business are not deductible in computing the business's federal taxable income.

3- If the debt becomes worthless, the amount allowed as a bad deduction is the adjusted basis of the debt.

4- The portion of an employee's salary deemed ''unreasonable'' may be considered a dividend distribution to an employee that is also a shareholder of the corporation.

5- Independent contractor is self-employed individuals who perform services for another individual or business entity and are considered employees of the persons or business that hire them.

Answer rating: 100% (QA)

1 False 2 True 3 True 4 False 5 False detailed explanation 1 The fair marke... View the full answer