[Anonymous]

According to Becker, statute of limitation applies to 25% of understatement of gross income. Here, what do you think about this MCQS from Wiley.

Gross Receipt $400K, COGS and other Deduction ($320K). Thus, net business income is $80K.

In addition, capital gain $36K. Thus, Gross Income $116K.

What amount to 6-year statute of limitations would apply if omitted from gross income an amount in excess of?

Wiley says $109K ($400K + 36K)X25%

so 25% of understatement of “gross income” also means gross receipts?

[littlenumberrobot]

Net income is $116K NOT gross. Gross is income plus gains. Do not include expenses in GROSS.

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

(Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

Ethics 90%

[Anonymous]

thank you, littlenumberrobot!

[Author]

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