Which of the Following Should Increase the Likelihood That Mr

question 39

Multiple Choice

Which of the following should increase the likelihood that Mr. and Mrs. McNut's Form 1040 will be selected for audit by the IRS?

• A) Mrs. McNut is an employee of the federal government.
• B) The McNuts claimed two additional standard deductions because they are both over age 65.
• C) The McNuts excluded $7,705 interest earned on a City of Pittsburg municipal bond from their gross income.
• D) The McNuts reported a $22,600 nonbusiness bad debt for a loan to their grandchild as a capital loss on Schedule D.

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Definitions:

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using information, including perception, memory, thinking, and language.

Encoding

The process of converting information into a form that can be stored in memory.

Encoding

The process of converting information into a form that allows it to be stored in our memory.

Cognitive Processes

Mental activities such as thinking, understanding, learning, and remembering.