The Use of Estimates on a Tax Return Generally Is

question 35

Multiple Choice

The use of estimates on a tax return generally is:

• A) Prohibited
• B) Allowed, but must be disclosed if the amounts involved are material
• C) Allowed, but must be disclosed if most, or all, of the line items on the tax return were estimated
• D) Allowed only if documents were destroyed by a natural disaster or computer failure

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Definitions:

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