Which of the Following Should Increase the Likelihood That Ms

question 4

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 these choices should increase the likelihood of audit.

---

Definitions:

Journal Entries

These are records of financial transactions in the accounting system that are used to transfer values from one account to another.

Raw Materials

Materials and substances used in the initial stages of production, instrumental in manufacturing goods.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products or jobs, such as lubricants and cleaning supplies for machinery.

Production

The act of developing, expanding, producing, or enhancing products and services.