True/False (15 questions). Please select the best answer for each question. 1. Joe operates his business on the accrual method and accrues a liability for customer refund expense on a monthly basis. If he elects to treat the expense as a recurring item, Joe can deduct accrued refund expense at the end of the year even though he has not yet paid the A True B. False True 2. Criminal penalties are more frequently imposed on tax practitioners because these penalties are much higher in dollar amount. A True B False 3. An example of a conversion tax planning strategy is shifting money out of a savings account and investing in municipal bonds. B/ False 4. Gillian's accrual method business provides furniture rentals for corporate events. Her client paid her $5.000 in November 2021 for furniture to be rented in February 2022. Gillian can defer recognizing the $5,000 of income to 2022. A True B. False 5. C corporations and corporations are separate tax-paying entities that pay tax on their own income A True B: False 6. A Section 197 purchased intangible, such as goodwill, is amortized for tax purposes over 15 years using straight line amortization. True B. False 7. Jared owns a restaurant and recently paid ABC Services $300 to recalibrate the thermostats in all of his refrigerators. He estimates that he pays for this service every 6 months, Jared must capitalize the cost of recalibrating the refrigerators. A.) True B. False 8. Stephen's case against the IRS over a challenged transaction is highly technical. He may prefer to take his case to the U.S. Tax Court. A. True B. False 9. Assuming tax rates do not change, an example of a timing tax planning strategy is the deferral of realized loss in a like-kind exchange. A True (B. False