MrAnd MrsLester Failed to Report a $40,540 Capital Gain on Their

question 31

Essay

Mr.and Mrs.Lester failed to report a $40,540 capital gain on their 2016 Form 1040.The gross income reported on the return was $169,404,and the return was filed on January 20,2017.What is the last date on which the IRS can assess additional tax for 2017?

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and costs, have been subtracted from total revenue.

Merchandise Inventory Account

An account in the general ledger that tracks the cost of goods intended for sale during an accounting period.

Worksheet

A document or tool used by accountants for preparing financial statements and supporting calculations.

Sales

Sales refer to the total revenue earned by a business from selling goods or services.