Which facts are relevant to a determination whether client has taxable income?

a) Client purchased her house in 2010.

b) Client's mother lived with her.

c) Client sold her house in 2013.

d) Both A and B.

e) Both A and C.

The citation, Reg. 1.62-1T indicates:

a) that this is a temporary estate tax regulation involving Code Sec. 62.

b) that this is a temporary income tax regulation involving Code Sec. 62.

c)None of the above.

d) that this is a final income tax regulation, involving Code Section 162.

A cash basis taxpayer may deduct a prepaid expense in full in the tax year of payment if:

a) the expense is a bona fide trade or business expense.

b) the expense is a refundable deposit.

c) current deduction of the expense does not result in a material distortion of income.

d) Both A and C.