Call, an Employee of Delite Dairy Company, Forges the Signa?ture

question 59

Multiple Choice

Call, an employee of Delite Dairy Company, forges the signa?ture of Elin, Delite's president, on a Delite check and cashes it at First Federal Bank. Elin would ratify Call's actions by

• A) asking First Federal to prosecute Call for forgery.
• B) discharging Call from Delite 's employment.
• C) entering into a repayment agreement with Call.
• D) filing criminal charges against Call herself.

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Definitions:

AMT Adjustments

Adjustments required for calculating the Alternative Minimum Tax, an alternative tax system designed to ensure that certain taxpayers pay at least a minimum amount of tax.

Standard Deduction

A fixed dollar amount that reduces the income that is subject to tax and varies according to the taxpayer's filing status.

Taxable Income

The portion of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

AMTI

Alternative Minimum Taxable Income; an income calculation used to ensure that high-income earners pay a minimum amount of tax.