Tax Planning
Question Bank
Course Introduction
Tax Planning explores the strategies and tools individuals and businesses use to minimize tax liability while ensuring compliance with relevant tax laws and regulations. The course examines the foundational principles of tax law, different types of taxes, and the impact of tax policy on business and personal financial decisions. Topics include income shifting, timing strategies, tax-advantaged investments, tax implications of business entity selection, and international tax planning considerations. Through real-world case studies and practical examples, students learn to identify tax planning opportunities and develop comprehensive plans that optimize after-tax outcomes, supporting informed decision-making in a variety of financial contexts.
Recommended Textbook
South Western Federal Taxation 2011 Comprehensive 34th Edition by William H. Hoffman
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Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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Sample Questions
Q1) For individual taxpayers,the interest rate for income tax refunds (overpayments)is the same as that applicable to assessments (underpayments).
A)True
B)False
Answer: True
Q2) If the tax deficiency is attributable to fraud,the negligence penalty will not be imposed.
A)True
B)False
Answer: True
Q3) Provisions in the tax law that promote energy conservation and more use of alternative (non-fossil)fuels can be justified by:
A)Political considerations.
B)Promoting administrative feasibility.
C)Economic and social considerations.
D)Encouragement of small business.
E)None of the above.
Answer: C
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Chapter 2: Working With the Tax Law
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Sample Questions
Q1) What administrative release deals with a proposed transaction rather than a completed transaction?
A)Letter Ruling.
B)Technical Advice Memorandum.
C)Determination Letter.
D)Field Service Advice.
E)None of the above.
Answer: A
Q2) Treasury Decisions are issued by the Treasury Department to promulgate new Regulations.
A)True
B)False
Answer: True
Q3) Three judges will normally hear each U.S.Tax Court case.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Computing the Tax
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Sample Questions
Q1) Wilma is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2010,she received $4,800 in Social Security benefits,$2,200 in bank interest,and $1,800 in cash dividends from stocks.Wilma's taxable income is:
A)$4,000 - $950 - $2,800 = $250.
B)$4,000 - $2,800 = $1,200.
C)$4,000 - $950 - $1,400 = $1,650.
D)$8,800 - $950 - $2,800 = $5,050.
E)None of the above.
Answer: A
Q2) For tax purposes,married persons filing separate returns are treated the same as single taxpayers.
A)True
B)False
Answer: False
Q3) In terms of income tax consequences,abandoned spouses are not treated the same way as married persons filing separate returns.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Gross Income: Concepts and Inclusions
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Sample Questions
Q1) Green,Inc. ,provides group term life insurance for all of its employees.The coverage equals twice the employee's annual salary.Sam,a vice-president,worked all year for Green,Inc.and received $200,000 of coverage for the year at a cost to Green of $2,800.The Uniform Premiums (based on Sam's age)are $.30 per month for $1,000 of protection.How much must Sam include in gross income this year?
A)$2,800.
B)$720.
C)$540.
D)$0.
E)None of the above.
Q2) Paula transfers stock to her former spouse,Fred.The transfer is pursuant to a divorce agreement.Paula's cost of the stock was $50,000 and its fair market value on the date of the transfer is $75,000.Fred later sells the stock for $78,000.Fred's recognized gain from the sale of the stock is $3,000.
A)True
B)False
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Chapter 5: Gross Income: Exclusions
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Sample Questions
Q1) Harold bought land from Jewel for $150,000.Harold paid $50,000 cash and gave Jewel an 8% note for $100,000.The note was to be paid over a five-year period.When the balance on the note was $80,000,Jewel began having financial difficulties.To accelerate her cash inflows,Jewel agreed to accept $60,000 cash from Harold in final payment of the note principal.
A)Harold must recognize $20,000 ($80,000 - $60,000)of gross income.
B)Harold is not required to recognize gross income,but must reduce his cost basis in the land to $130,000.
C)Harold is not required to recognize gross income,since he paid the debt before it was due.
D)Jewel must recognize gross income of $20,000 ($80,000 - $60,000)from discharge of the debt.
E)None of the above.
Q2) Sarah's employer pays the hospitalization insurance premiums for a policy that covers all employees and their family members.Sarah can exclude from her gross income the premiums for herself and her family members.
A)True
B)False
Q3) What Federal income tax benefits are provided for college students?
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Page 7
Chapter 6: Deductions and Losses: in General
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Q1) The amount of the addition to the reserve for bad debts for an accrual method taxpayer is allowed as a deduction for tax purposes.
A)True
B)False
Q2) If an item such as property taxes exceeds the income from a hobby,the excess amount of this item over the hobby income can be deducted if the taxpayer itemizes deductions.
A)True
B)False
Q3) If a vacation home is used for personal use less than 15 days and is rented for more than 14 days during a year,the property is treated as primarily rental property.
A)True
B)False
Q4) During the year,Larry rented his vacation home for 180 days and lived in it for 16 days.During the remaining days,the vacation home was available for rental use.Is the vacation home subject to the limitation on the deductions of a personal/rental vacation home?
Q5) Are there any circumstances under which lobbying expenditures are deductible?
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Sample Questions
Q1) Several years ago,John purchased 2,000 shares of § 1244 stock from Red Corporation for $40,000.Last year,John sold one-half of his Red Corporation stock to Mike for $12,000.During the current year,Mike sold the Red Corporation stock for $3,000.Mike has a $9,000 ($3,000 - $12,000)ordinary loss for the current year.
A)True
B)False
Q2) Last year,Lucy purchased a $100,000 account receivable for $90,000.During the current year,Lucy collected $87,000 on the account.What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected.
A)$0.
B)$2,000 gain.
C)$3,000 loss.
D)$13,000 loss.
E)None of the above.
Q3) A taxpayer must carry any NOL incurred back two years.
A)True
B)False
Q4) How is qualified production activities income (QPAI)calculated?
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Chapter 8: Depreciation,cost Recovery,amortization,and Depletion
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Sample Questions
Q1) Discuss the effect on the cost recovery method of a taxpayer election if the uniform capitalization rules apply to a farming business.
Q2) Diane purchased a factory building on November 15,1993,for $5,000,000.She sells the factory building on February 2,2010.Determine the cost recovery deduction for the year of the sale.
A)$16,025.
B)$19,844.
C)$26,458.
D)$158,750.
E)None of the above.
Q3) If more than 40% of the value of property,other than real property,is placed in service during the last quarter,all of the property will be allowed 1.5 months of cost recovery.
A)True
B)False
Q4) On August 20,2009,May signed a 10-year lease on a building for her business.On November 28,2010,May paid $80,000 for a leasehold improvement to the building.What is May's cost recovery deduction for the improvement in 2010?
Q5) Discuss the reason for the inclusion amount with respect to leased automobiles.
Page 10
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Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
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Sample Questions
Q1) After the automatic mileage rate has been set by the IRS for a year,it can later be changed.
A)True
B)False
Q2) For the current football season,Rail Corporation pays $28,000 for a skybox (containing 12 seats)at Memorial Arena for eight home games.Regular nonskybox seats at each game range from $80 to $120 a seat.In October,a Rail employee and ten clients use the skybox to attend a game.The event is preceded by a bona fide business discussion,and Rail spent $810 for food and drinks during the game.What is Rail's deduction?
Q3) There is no cutback adjustment for meals and entertainment as to employees who are subject to regulation by the U.S.Department of Transportation.
A)True
B)False
Q4) Lloyd,a practicing CPA,pays tuition to attend law school.Since a law degree involves education leading to a new trade or business,the tuition is not deductible.
A)True
B)False
Page 11
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Sample Questions
Q1) Medical expenses must relate to a particular ailment in order to be deductible.The cost of a periodic physical exam is not deductible because it relates to the taxpayer's general state of health.
A)True
B)False
Q2) Jennifer,who is single and whose MAGI is $100,000,paid $2,500 interest on a qualified student loan in 2010.She may deduct the interest as a deduction for AGI.
A)True
B)False
Q3) During the year,Eve (a resident of Billings,Montana)spends three consecutive weeks in Louisville,Kentucky.One week is spent representing the Billings First Christian Church at the national convention,and two weeks are spent vacationing with relatives.One third of Eve's travel expenses will qualify as a charitable deduction.
A)True
B)False
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Chapter 11: Investor Losses
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Sample Questions
Q1) During the year,Bear Company incurs a $25,000 loss on a passive activity,has active income of $17,000,and portfolio income of $12,000.If Bear is a personal service corporation,it may deduct all of the $25,000 passive loss.
A)True
B)False
Q2) Lucy participates for 405 hours in Activity A and 100 hours in Activity B,both of which are nonrental businesses.Both activities are passive.
A)True
B)False
Q3) Gray Company,a closely held C corporation,incurs a $50,000 loss on a passive activity during the year.The company has active income of $34,000 and portfolio income of $24,000.If Gray is a not a personal service corporation,it may deduct $34,000 of the passive loss.
A)True
B)False
Q4) When a taxpayer disposes of a passive activity by gift,what happens to any unused passive losses?
Q5) What special passive loss treatment is available to real estate activities?
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Chapter 12: Tax Credits and Payments
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Sample Questions
Q1) Several years ago,Tom purchased a structure for $150,000 that was originally placed in service in 1929.Three and one-half years ago he incurred qualifying rehabilitation expenditures of $300,000.In the current year,Tom sold the property in a taxable transaction.Calculate the amount of the recapture of the tax credit for rehabilitation expenditures.
A)$0.
B)$12,000.
C)$18,000.
D)$24,000.
E)None of the above.
Q2) Discuss the treatment of unused general business credits.
Q3) Nonrefundable credits are those that reduce the taxpayer's tax liability but are not paid when the amount of the credit (or credits)exceeds the taxpayer's tax liability.
A)True
B)False
Q4) Income tax withheld on wages is an example of a refundable credit.
A)True
B)False
Q5) Describe the withholding requirements applicable to employers.
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Chapter 13: Part 1--Property Transactions: Determination of
Gain or Loss,basis Considerations,and Nontaxable Exchanges
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Sample Questions
Q1) Joyce,a farmer,has the following events occur during the tax year.Which of the events qualify as an involuntary conversion under § 1033 (nonrecognition of gain from an involuntary conversion)?
A)Her farm tractor is hauled to the city dump because it is worn out.
B)She burns her barn because it is infested with termites.
C)Her personal residence,adjusted basis of $100,000,is condemned to make way for an interstate highway.She recovers condemnation proceeds of $175,000.
D)She sells 10 acres of pasture land at a loss of $40,000 because she has reduced the size of her dairy herd due to a reduction in milk prices.
E)None of the above.
Q2) The holding period of nontaxable stock rights includes the holding period of the stock on which the rights were distributed.
A)True
B)False
Q3) At a particular point in time,a taxpayer can have only one principal residence for § 121 exclusion purposes.
A)True
B)False
Page 15
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Chapter 13: Part 2--Property Transactions: Determination of
Gain or Loss,basis Considerations,and Nontaxable Exchanges
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Sample Questions
Q1) For gifts made after 1976,when will part of the gift tax paid by the donor be added to the donee's basis?
Q2) Distinguish between a direct involuntary conversion and an indirect involuntary conversion.
Q3) Explain how the sale of investment property at a loss to a brother is treated differently from a sale to a nephew.
Q4) Discuss the logic for mandatory deferral of realized gain or loss for a § 1031 like-kind exchange.
Q5) Why is it generally undesirable to pass property by death when its fair market value is less than basis?
Q6) Katrina,age 58,rented (as a tenant)the house that was her principal residence from January 1,2010 through December 31,2011.She purchased the house on January 1,2012,for $150,000 and continued to occupy it through June 30,2013.She leased it to a tenant from July 1,2013,through December 31,2014.On January 1,2015,she sells the house for $350,000.She incurs a realtor's commission of $20,000.Calculate her recognized gain if her objective is to minimize the recognition of gain and she does not intend to acquire another residence.
Q7) Discuss the treatment of realized gains from involuntary conversions. Page 16
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Chapter 14: Property Transactions: Capital Gains and Losses,1231,and
Recapure Provisions
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Sample Questions
Q1) Robin Corporation has ordinary income from operations of $30,000,net long-term capital gain of $10,000,and net short-term capital loss of $15,000.What is the taxable income for 2010?
A)$25,000.
B)$27,000.
C)$28,500.
D)$30,000.
E)None of the above.
Q2) Bakra was the holder of a patent on a wireless modem.During 2010,he sold all substantial rights in the patent for $345,000 in cash and a 3% royalty on the purchaser's first $10,200,000 of sales each year related to the product in which the patent is incorporated.Bakra had not reduced the patent to practice.He had a $56,000 basis for the patent.During 2010,he received $10,000 in royalties.What is the nature and amount of Bakra's gain?
Q3) Kenneth acquires $100,000 face value corporate bonds for $86,000 when the bonds are issued.He holds the bonds as an investment for two years and then sells them for $98,000.What tax issues does Kenneth have with respect to these bonds?
Q4) What characteristics must the seller of a patent have in order to be classified as a holder?
Page 18
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Chapter 15: Alternative Minimum Tax
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Q1) Is it possible that no AMT adjustment is necessary for medical expenses in calculating AMTI even though the floor limitation is different (7.5% of AGI for regular income tax compared to 10% for AMT purposes)?
Q2) What is the purpose of the AMT exemption amount? What is the maximum amount for each filing status for an individual taxpayer and for a corporate taxpayer?
Q3) Jan's tentative AMT is $32,500.Her regular income tax liability is $29,000.Jan's AMT is $3,500.
A)True
B)False
Q4) Nonrefundable personal credits are permitted to offset the AMT.
A)True
B)False
Q5) Losses associated with a passive activity owned by an individual are not deductible against active income or portfolio income in computing either the regular income tax or the AMT.
A)True
B)False
Q6) Discuss the tax year in which an AMT adjustment is first required for an ISO.
Q7) What is the relationship between taxable income and AMTI?
Page 19
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Chapter 16: Accounting Periods and Methods
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Q1) Andrew owns 100% of the stock of Crow's Farm Inc. ,an S corporation,that raises cattle and corn.The farm's annual gross receipts have never exceeded $3,000,000 and the farm is not considered a tax shelter.
A)The farm must report its sales and cost of goods sold by the accrual method because inventories are material to the business.
B)The income from the farm may be reported by the cash method.
C)The income from the sales of cattle may be reported by the cash method,but the income from the sales of corn must be reported by the accrual method.
D)The income from the sales of corn may be reported by the cash method,but the income from cattle sales must be reported by the accrual method.
E)None of the above.
Q2) In the case of a sale reported under the installment method,no gain is reported until the seller has recovered the entire cost of the property sold.
A)True
B)False
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Page 20
Chapter 17: Corporations: Introduction and Operating Rules
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Q1) Eagle Company,a partnership,had a long-term capital gain of $15,000 during the year.Aaron,who owns 40% of Eagle,must report $6,000 of Eagle's long-term capital gain on his individual tax return.
A)True
B)False
Q2) Sage,Inc. ,a closely held corporation that is not a PSC,has a $110,000 passive loss,$90,000 of active income,and $25,000 of portfolio income during the year.How much of the passive loss can Sage deduct in the current year?
A)$0.
B)$25,000.
C)$90,000.
D)$110,000.
E)None of the above.
Q3) Discuss the purpose of Schedule M-1.Give two examples of an addition and two examples of a subtraction that could be reported on Schedule M-1.
Q4) Generally,corporations with no taxable income must file a Form 1120.
A)True
B)False
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Page 21
Chapter 18: Corporations: Organization and Capital Structure
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Q1) Hunter and Warren form Tan Corporation.Hunter transfers equipment (basis of $210,000 and fair market value of $180,000)while Warren transfers land (basis of $15,000 and fair market value of $150,000)and $30,000 of cash.Each receives 50% of Tan's stock.As a result of these transfers:
A)Hunter has a recognized loss of $30,000;Warren has a recognized gain of $135,000.
B)Neither Hunter nor Warren has any recognized gain or loss.
C)Hunter has no recognized loss;Warren has a recognized gain of $30,000.
D)Tan Corporation has a basis in the land of $45,000.
E)None of the above.
Q2) Similar to the like-kind exchange provision,§ 351 can be partly justified under the wherewithal to pay concept.
A)True
B)False
Q3) Joyce,a single taxpayer,transfers property (basis of $120,000 and fair market value of $60,000)to Wren Corporation in exchange for shares of § 1244 stock.As the transfer qualifies under § 351,Joyce takes a $120,000 basis in the Wren stock.In the current year,Joyce sells the Wren Corporation stock for $40,000.What are the consequences of the sale to Joyce?
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Chapter 19: Corporations: Distributions Not in Complete Liquidation
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Q1) Distributions by a corporation to its shareholders are presumed to be a return of capital unless the parties can prove otherwise.
A)True
B)False
Q2) As of January 1,Warbler Corporation has a deficit in accumulated E & P of $150,000.For the year,current E & P (accrued ratably)is $260,000 (prior to any distributions).On July 1,Warbler Corporation distributes $295,000 to its sole shareholder.The amount of the distribution that is a dividend is:
A)$10,000.
B)$110,000.
C)$260,000.
D)$295,000.
E)None of the above.
Q3) The rules used to determine the taxability of stock dividends also apply to distributions of stock rights.
A)True
B)False
Q4) What are the tax consequences of a qualifying stock redemption to the distributing corporation?
Page 23
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Chapter 20: Distributions in Complete Liquidation and an
Overview of Reorganizations
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Q1) Brown Corporation purchased 85% of the stock of Green Corporation five years ago for $1.2 million.In the current year,Brown Corporation liquidates Green Corporation and acquires assets with a basis to Green Corporation of $800,000 (fair market value of $1.3 million).Brown Corporation will have a basis in the assets of $1.2 million,the same as Brown's basis in the Green stock.
A)True
B)False
Q2) United States tax policy tries to encourage business development. A)True B)False
Q3) Noncorporate shareholders may elect out of § 368 and recognize losses when property subject to a liability is distributed to them in a corporate reorganization. A)True
B)False
Q4) The text discusses four different limitations on loss recognition by liquidating corporations.Provide a brief description of each of these loss limitations.
Q5) Describe the requirements for and tax consequences of a § 338 election.
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Chapter 21: Partnerships
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Q1) Section 721 provides that no gain or loss is recognized on contribution of property to a partnership in exchange for an interest in the partnership.A disguised sale is an exception to nonrecognition of gain or loss under § 721.
A)True
B)False
Q2) On a partnership's Form 1065,which of the following statements is always true?
A)The partnership will reconcile ordinary income from operations (excluding separately stated items)to book income on Schedule M-1 or M-3.
B)The partnership balance sheet is required to be presented on a tax basis.
C)All partnership income and expense items are reported on Form 1065,page 1.
D)The partnership's equivalent of taxable income is reported in the "Analysis of Income (Loss)."
E)All of the above statements are true.
Q3) A distribution can be "proportionate" even if only one partner receives assets from the partnership.
A)True
B)False
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Chapter 22: S Corporations
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Q1) With respect to passive losses,there are three classes of income,losses,and credits: ____________________,____________________,and passive. or
Q2) Excess net passive income of an S corporation is $40,000 and taxable income is $32,000.Assuming that there is $50,000 of accumulated earnings and profits from a C corporation year,calculate any passive income penalty tax.
A)$0.
B)$4,500.
C)$10,500.
D)$11,200.
E)Some other amount.
Q3) Only 51% of the shareholders must consent to an S election.
A)True B)False
Q4) A distribution from previously taxed income is taxable. A)True
B)False
Q5) An S corporation's separately stated items are identical to those separately stated by _________________________.
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Chapter 23: Exempt Entities
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Q1) If an exempt organization is required to file an annual information return,on what form is it filed?
Q2) Which of the following statements is correct?
A)A private foundation is,in general,exempt from Federal income tax.
B)A private foundation may be subject to certain types of Federal income tax.
C)If a broad public support test is satisfied,an exempt organization that otherwise would be classified as a private foundation is not classified as a private foundation.
D)Only b.and c.are correct.
E)a. ,b. ,and c.are correct.
Q3) Even though a church is not required to obtain IRS approval of its exempt status,it still must file Form 990 (Return of Organization Exempt from Income Tax)annually.
A)True
B)False
Q4) Unrelated debt-financed income,net of the unrelated debt-financed deductions,is subject to the unrelated business income tax only if the exempt organization is a private foundation.
A)True
B)False
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Chapter 24: Multistate Corporate Taxation
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Q1) A taxpayer wishing to reduce the negative tax effects of the application of the unitary theory might:
A)Affiliate with a service division that shows an operating loss,like one in marketing.
B)Disengage unitary operations with the most profitable affiliates.
C)Add a profitable entity to the unitary group.
D)a.and b.
Q2) In determining the numerator of the sales factor,most states follow UDITPA's ____________________ concept,whereunder sales are assumed to take place at the point of delivery,as opposed to the location at which the shipment originates.
Q3) In most states,a taxpayer's income is apportioned on the basis of a formula measuring the extent of business contact,and allocated according to the location of property owned or used.
A)True
B)False
Q4) The property factor includes assets that the taxpayer owns,but not those merely used under a lease agreement.
A)True
B)False
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Chapter 25: Taxation of International Transactions
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Q1) Which of the following is a true statement regarding a tax haven?
A)A country with high internal taxes.
B)A country with no or low internal taxes.
C)A country without income tax treaties.
D)A country that prohibits "treaty shopping."
E)None of the above statements is true.
Q2) Rufus,Inc. ,a domestic corporation,has worldwide taxable income of $800,000,including a $300,000 dividend from Emma,Inc. ,a § 902 noncontrolled foreign corporation.Rufus' U.S.tax liability before FTC is $280,000.Rufus owns 20% of Emma.Emma's post-1986 E & P after taxes is $8 million and it has paid foreign taxes of $5 million attributable to post-1986 E & P.If Rufus elects the FTC,its U.S.gross income with regard to the dividend from Emma is:
A)$487,500.
B)$112,500.
C)$300,000.
D)$0.
Q3) Discuss the primary purposes of income tax treaties.
Q4) All losses are apportioned against U.S.-source income.
A)True
B)False
Page 29
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Chapter 26: Tax Practice and Ethics
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) The taxpayer can be assessed a penalty when the IRS disallows a refund claim for which there is no reasonable basis of support for the refund claim,in the amount of ____________________% of the disallowed amount.
Q2) A tax preparer cannot disclose to a mortgage banker the client's income level,or other information acquired by preparing the return,without the client's permission.
A)True
B)False
Q3) Circular 230 allows a tax preparer to:
A)Take a position on a tax return that is contrary to a decision of the U.S.Supreme Court.
B)Charge a $5,000 fee to prepare a Form 1040EZ.
C)Advertise tax preparation services on the Internet.
D)Avoid signing a tax return that is likely to be audited.
Q4) In the context of civil fraud,the burden of proof is on the IRS to show by a "preponderance of the evidence" that the taxpayer had a specific intent to evade a tax.
A)True
B)False
Q5) Why should the tax practitioner study the workings of the IRS?
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Page 30
Chapter 27: The Federal Gift and Estate Taxes
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) Which of the following is not a characteristic of both the Federal gift tax and the Federal estate tax?
A)The generation-skipping transfer tax may apply.
B)A charitable deduction is available.
C)A marital deduction is available.
D)A deduction for state death taxes may be available.
E)An exclusion amount is available in computing the tax.
Q2) Under the alternate valuation date election,each asset in the gross estate is valued at the lesser of the date of death value or six months thereafter.
A)True
B)False
Q3) In a § 2503(c)trust for minors,the trustee can be given the power to accumulate income without the gift violating the future interest rule.
A)True
B)False
Q4) Madeline pays for her mother's nursing home expenses.Under what conditions might such payments not be a gift?
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Chapter 28: Income Taxation of Trusts and Estates
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) The unextended due date for a calendar-year trust to file its Form 1041 is March 15.
A)True
B)False
Q2) When a trust distributes an in-kind asset with a realized loss,most likely this loss should be allocated to and immediately deducted by the first-tier beneficiaries.
A)True
B)False
Q3) Generally,an administrative expense should be claimed on the decedent's estate tax return,because it is subject to a higher marginal tax bracket than is the estate's taxable income.
A)True
B)False
Q4) Identify the parties that are present when an estate is created,and their key duties.A trust.
Q5) The decedent's estate must terminate by the third anniversary of the date of death. A)True
B)False
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