Reference no: EM131754988

1. Terry is a sole proprietorship. He desires to be taxed as a corporation. What does he need to do?
a) Create a new entity
b) File Form 4562
c) Make an S election
d)File Form 8832

2) All of the following income items are includible in an employee's gross income except _____.
a) severance pay for the cancellation of employment
b) the amount received for personal injuries
c) an accrued vacation
d) moving expense reimbursement

3) If Jerry incurred $750 of business-related meal expenses during the year, how much can he deduct on his Schedule C?
a) None; it's a personal expense
b) $375
c) $750
d) $675