Christie and Billy Jointly File This Year

question 46

Essay

Christie and Billy jointly file this year. Billy intentionally omits $5,000 in gambling winnings. Christie fraudulently deducts $1,000 in business expenses. The IRS audits the return, assesses a $2,500 deficiency and begins collection efforts two years after the timely filing of the return. Christie and Billy divorced one year before the deficiency was assessed. Can Christie receive any tax relief from the full $2,500 deficiency?

Identify which accounts appear on the post-closing trial balance.

Understand the purpose and process of adjusting and closing entries in accounting.

Identify the components of a post-closing trial balance and its preparation process.

Recognize the impact of various accounting entries on financial statements.

---

Definitions:

Individualism

A social theory advocating the freedom, rights, or independent action of the individual.

Life Review

A process, often used in therapy, where individuals reflect upon their lives, significant events, and relationships, typically to gain insight or resolve issues.

Cognitive Appraisal

A mental process through which an individual evaluates and interprets an event or situation, determining its significance and potential impact on well-being.

Life Review Intervention

A therapeutic technique used primarily with older adults to reflect on past experiences and achievements, often leading to increased well-being.