Peyton Has Adjusted Gross Income of $2,000,000 on His 2015

question 74

Multiple Choice

Peyton has adjusted gross income of $2,000,000 on his 2015 tax return,filed April 15,2016.He accidentally failed to include $200,000 that he received for a television advertisement.How long does the IRS have to audit Peyton's federal tax return?

• A)until April 15,2018
• B)until April 15,2019
• C)until April 15,2022
• D)The IRS can audit Peyton's return at any future date.

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Definitions:

Measuring NCI

Stands for the process of valuing a Non-Controlling Interest, which represents ownership in a subsidiary not held by the parent company.

Ordinary Shares

Equity securities representing ownership in a company, which entitle holders to vote at shareholder meetings and receive dividends.

Preference Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, typically with fixed dividends and without voting rights.

NCI

Non-controlling interest, a portion of the equity in a subsidiary not attributable, directly or indirectly, to the parent company.