Which of the Following Should Increase the Likelihood That Ms

question 8

Multiple Choice

Which of the following should increase the likelihood that Ms.Piper's Form 1040 will be selected for audit by the IRS?

• A)Ms.Piper files as head of household because she maintains a home for her 89-year old mother who has Alzheimer's disease.
• B)Ms.Piper's AGI is $58,400,and she deducted $27,590 of charitable contributions on her Schedule A.
• C)Ms.Piper reported $10,200 alimony income from her former spouse.
• D)None of the above should increase the likelihood of audit.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, often used to quantify the risk of a financial instrument.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand.

Supply Curve

A graphical representation of the relationship between the price of a product and the quantity of the product that a supplier is willing and able to supply, holding all other factors constant.