In Which of the Following Is Not a Condition for Relief

question 4

Multiple Choice

In which of the following is not a condition for relief of liability under the innocent spouse rule?

• A)The deficiency must be attributable to erroneous items of the person's spouse.
• B)The person must establish that in signing the return he or she did not know,and had no reason to know,that the return understated the correct tax.
• C)Taking into account all the facts and circumstances,it is inequitable to hold the person liable for the deficiency.
• D)The person is divorced from or in the process of divorcing their spouse.

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Definitions:

Stockholders' Equity

The remaining interest in a company's assets after all liabilities are subtracted, indicating ownership.

Real Accounts

Accounts that represent assets, liabilities, and equity, remaining open to accumulate financial information over several periods.

Liabilities

Financial obligations or debts that an entity owes to others, which are expected to be settled over time through the transfer of economic benefits.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.