Taxation of Business Entities Pre-Test Questions
Course Introduction
This course provides a comprehensive overview of the federal income taxation of business entities, with a primary focus on corporations, partnerships, and limited liability companies. Students will explore the tax implications of entity formation, operation, distributions, liquidation, and reorganizations. The course covers key concepts such as double taxation, flow-through taxation, tax attributes, loss limitations, and special provisions for S corporations and other pass-through entities. Through real-world examples and problem-solving, students will gain a solid understanding of how tax law influences business decisions and entity structures.
Recommended Textbook
South Western Federal Taxation 2013 Comprehensive 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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Q1) Which, if any, of the following statements best describes the history of the Federal income tax?
A)It existed during the Civil War.
B)The Federal income tax on corporations was held by the U.S.Supreme Court to be contrary to the U.S.Constitution.
C)The Federal income tax on individuals was held by the U.S.Supreme Court to be allowable under the U.S.Constitution.
D)Both the Federal income tax on individuals and on corporations was held by the U.S.Supreme Court to be contrary to the U.S.Constitution.
E)None of the above.
Answer: A
Q2) The pay-as-you-go feature of the Federal income tax on individuals conforms to Adam Smith's canon of certainty.
A)True
B)False
Answer: False
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Chapter 2: Working With the Tax Law
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Q1) The following citation is correct: Larry G.Mitchell, 131 T.C.215 (2008).
A)True
B)False
Answer: True
Q2) House members have considerable latitude to make amendments on the House floor.
A)True
B)False
Answer: False
Q3) There is a direct conflict between a Code section adopted in 2004 and a treaty with France (signed in 2008).The Code section controls.
A)True
B)False
Answer: False
Q4) Regulations are arranged in the same sequence as the Internal Revenue Code.
A)True
B)False
Answer: True
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Chapter 3: Computing the Tax
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Q1) An individual taxpayer uses a fiscal year March 1-February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.
A)True
B)False
Answer: False
Q2) Heloise, age 74 and a widow, is claimed as a dependent by her daughter.For 2012, she had income as follows: $2,500 interest on municipal bonds; $3,200 Social Security benefits; $3,000 income from a part-time job; and $2,800 dividends on stock investments.What is Heloise's taxable income for 2012?
Answer: $1,050.$3,000 (income from job) + $2,800 (dividends) - $3,300 (basic standard deduction is $3,000 + $300) - $1,450 (additional standard deduction for age) = $1,050.The Social Security benefits of $3,200 and the interest on municipal bonds of $2,500 are not taxable.
Q3) For dependents who have income, special filing requirements apply.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Gross Income: Concepts and Inclusions
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Q1) In some community property states, the income from property that was inherited by a spouse after the marriage is treated as all earned by the spouse who inherited the property.
A)True
B)False
Q2) The alimony recapture rules are intended to:
A)Assist former spouses in collecting alimony when the other spouse moves to another state.
B)Prevent tax deductions for property divisions.
C)Reduce the net cash outflow for the payor.
D)Distinguish child support payments from alimony.
E)None of the above.
Q3) The alimony rules:
A)Are based on the principle that the person who earns the income should pay the tax.
B)Permit tax deductions for property divisions.
C)Look to state law to determine the definition of alimony.
D)Distinguish child support payments from alimony.
E)None of the above.
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Chapter 5: Gross Income: Exclusions
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Q1) Zack was the beneficiary of a life insurance policy on his wife.Zack had paid $20,000 in premiums on the policy.He collected $50,000 on the policy when his wife died from a terminal illness.Because it took several months to process the claim, the insurance company paid Zack $53,000, the face amount of the policy plus $3,000 interest.Zack must include $23,000 in his gross income.
A)True
B)False
Q2) George is employed by the Quality Appliance Company.All the full time employees are allowed to purchase appliances at the company's cost plus 10%.The employee also is given, at no cost, a 1-year service contract on all the goods purchased from the company.George purchased a refrigerator for $500.The company's normal selling price for the refrigerator is $800.George also received a service contract, at no charge, that had a value of $150.During the year, George was required to have his refrigerator serviced once.The cost of the call would have been $75 if he had not had the service contract.Is George required to recognize any income from the purchase of the refrigerator, the receipt of the service contract, and the service call?
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) Briefly explain why interest on money borrowed to buy tax-exempt municipal bonds is disallowed as a deduction.
Q2) For an expense to be deducted as ordinary, it must be recurring in nature.
A)True
B)False
Q3) Briefly discuss the disallowance of deductions for capital expenditures.
Q4) If an item such as property taxes and home mortgage interest exceed the income from a hobby, the excess amount of this item over the hobby income cannot be deducted if the taxpayer itemizes deductions.
A)True
B)False
Q5) The cash method can be used even if inventory and cost of goods sold are an income producing factor in the business.
A)True
B)False
Q6) Bobby operates a drug trafficking business.Because he has an accounting background, he keeps detailed financial records.What expenses can Bobby deduct on his Federal income tax return?
Q7) Are all personal expenses disallowed as deductions?
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Q1) Alma is in the business of dairy farming.During the year, one of her barns was completely destroyed by fire.The adjusted basis of the barn was $90,000.The fair market value of the barn before the fire was $75,000.The barn was insured for 95% of its fair market value, and Alma recovered this amount under the insurance policy.Alma has adjusted gross income for the year of $40,000 (before considering the casualty).Determine the amount of loss she can deduct on her tax return for the current year.
A)$3,750.
B)$14,650.
C)$14,750.
D)$18,750.
E)None of the above.
Q2) James is in the business of debt collection. He purchased a $20,000 account receivable from Green Corporation for $15,000. During the year, James collected $17,000 in final settlement of the account. James can take a $2,000 bad debt deduction in the current year.
A)True
B)False
Q3) Identify the factors that should be considered in determining whether a transaction is a bona fide loan or a gift.
Page 9
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Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
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Q1) Rick purchased a uranium interest for $10,000,000 on January 3, 2012, when recoverable reserves were estimated at 200,000 units.A total of 10,000 units were extracted in 2012 and 7,000 units were sold in 2012.Gross income from the property was $2,800,000 and taxable income without the allowance for depletion was $1,000,000.Determine the depletion deduction for 2012.
Q2) Discuss the beneficial tax consequences of an SUV not being classified as a passenger automobile.
Q3) On May 30, 2012, Jane signed a 20-year lease on a factory building to use for her business. The lease begins on June 1, 2012. In August 2012, Jane paid $300,000 for qualified leasehold improvements to the building. Jane takes additional first-year depreciation. Determine Jane's total deduction with respect to the leasehold improvements for 2012.
A)$2,890.
B)$150,000.
C)$151,445.
D)$300,000.
E)None of the above.
Q4) 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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Q1) An individual, age 40, who is not subject to the phase-out provision may contribute a deductible amount to a Roth IRA up to $5,000 per year in 2012.
A)True
B)False
Q2) In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve self-employed?
A)Schedule C of Form 1040.
B)Form 2106.
C)Form W-2.
D)Schedule A of Form 1040.
E)None of the above.
Q3) Jake performs services for Maude. If Jake provides his own helper and tools, this is indicative of independent contractor (rather than employee) status.
A)True
B)False
Q4) Concerning the deduction for moving expenses, what circumstances, if any, will excuse a taxpayer from meeting the time test of 39 or 78 weeks?
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Q1) Taxes assessed for local benefits, such as a new sidewalk, are not deductible as real property taxes.
A)True
B)False
Q2) In 2012, Brandon, age 72, paid $3,000 for long-term care insurance premiums. He may include the $3,000 in computing his medical expense deduction for the year.
A)True
B)False
Q3) Sadie mailed a check for $2,200 to a qualified charitable organization on December 31, 2012.The $2,200 contribution is deductible on Sadie's 2012 tax return.
A)True
B)False
Q4) Donald owns a principal residence in Chicago, a vacation lodge in New Mexico, and a yacht (with living quarters) on Lake Michigan.All three properties have mortgages on which Donald pays interest.Discuss any limitations that apply to Donald's mortgage interest deduction, and suggest any strategy Donald should consider to maximize his deduction.
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Chapter 11: Investor Losses
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Q1) Sandra acquired a passive activity three years ago.Until last year, the activity was profitable and her at-risk amount was $300,000.Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000.Assuming Sandra has received no passive income in the current or prior years, her suspended passive loss from the activity is:
A)$90,000 from last year and $50,000 from the current year.
B)$100,000 from last year and $50,000 from the current year.
C)$0 from last year and $0 from the current year.
D)$50,000 from the current year.
E)None of the above.
Q2) Investment income can include gross income from interest, dividends, annuities, and royalties not derived in the ordinary course of a trade or business; income from a passive activity; and income from a real estate activity in which the taxpayer actively participates.
A)True
B)False
Q3) In 2012, Emily invests $100,000 in a limited partnership that is not a passive activity.During 2012, her share of the partnership loss is $70,000.In 2013, her share of the partnership loss is $50,000.How much can Emily deduct in 2012 and 2013?
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Chapter 12: Tax Credits and Payments
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Q1) The calculation of FICA and the self-employment tax both involve two components: the Social Security portion and the Medicare portion, each portion of which is imposed on the same base amounts.
A)True
B)False
Q2) All taxpayers are eligible to take the basic research credit.
A)True
B)False
Q3) Kevin and Sue have two children, ages 8 and 14.They spend $6,200 per year on eligible employment related expenses for the care of their children after school.Kevin earned a salary of $20,000 and Sue earned a salary of $18,000.What is the amount of the credit for child and dependent care expenses?
A)$690.
B)$713.
C)$1,380.
D)$1,426.
E)None of the above.
Q4) How does the FICA tax compare to the self-employment tax? How are these two taxes similar and how do they differ?
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Chapter 13: Property Transactions: Determination of Gain or
Loss, Basis Considerations, and Nontaxable
Exchanges-Part 2
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Q1) How does the replacement time period differ for the condemnation of real property used in a trade or business or held for investment when compared with that for other involuntary conversions?
Q2) When a property transaction occurs, what four questions should be considered with respect to the sale or other disposition?
Q3) Bill is considering two options for selling land for which he has an adjusted basis of $80,000 and on which there is a mortgage of $75,000.Under the first option, Bill will sell the land for $170,000 with a stipulation in the sales contract that he liquidate the mortgage before the sale is complete.Under the second option, Bill will sell the land for $95,000 and the buyer will assume the mortgage.Calculate Bill's recognized gain under both options.
Q4) Libby's principal residence is destroyed by a tornado. She is single and her realized gain is $360,000. Is it possible for Libby's recognized gain to be $0?
Q5) For gifts made after 1976, when will part of the gift tax paid by the donor be added to the donee's basis?
Page 15
Q6) What effect does a deductible casualty loss have on the adjusted basis of property?
Q7) What kinds of property do not qualify under the like-kind provisions?
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Chapter 13: A: Property Transactions: Determination
of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 1
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Q1) The basis of inherited property usually is its fair market value on the date of the decedent's death.
A)True
B)False
Q2) The holding period of property acquired by gift may begin on:
A)The date the property was acquired by the donor only.
B)The date of gift only.
C)Either the date the property was acquired by the donor or the date of gift.
D)The last day of the tax year in which the property was originally acquired by the donor.
E)None of the above.
Q3) Taxpayer owns a home in Atlanta.His company transfers him to Chicago on January 2, 2012, and he sells the Atlanta house in early February.He purchases a residence in Chicago on February 3, 2012.On December 15, 2012, taxpayer's company transfers him to Los Angeles.In January 2013, he sells the Chicago residence and purchases a residence in Los Angeles.Because multiple sales have occurred within a two-year period, § 121 treatment does not apply to the sale of the second home.
A)True
B)False
Page 17
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Chapter 14: Property Transactions: Capital Gains and Losses,
1231, Recapture Provisions
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Q1) As a general rule, the sale or exchange of an option to buy or sell property results in capital gain or loss if the property subject to the option is (or would be) a capital asset in the hands of the option holder.
A)True
B)False
Q2) Laura purchased for $1,610 a $2,000 bond when it was issued two years ago.Laura amortized $200 of the original issue discount and then sold the bond for $1,800.Which of the following statements is correct?
A)Laura has $10 of long-term capital loss.
B)Laura has $190 of long-term capital gain.
C)Laura has no capital gain or loss.
D)Laura has $190 of long-term capital loss.
E)None of the above.
Q3) A security that is a capital asset becomes worthless.The loss is deemed to have occurred on the day that the security was declared worthless.
A)True
B)False
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Chapter 15: Alternative Minimum Tax
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Questions
Q1) Wallace owns a construction company that builds both commercial and residential buildings. He contracts to build a residential building for $800,000 for which he is eligible to use the completed contract method of accounting. In the current year for regular income tax purposes, Wallace does not recognize any income on the contract. Under the percentage of complete method, the income recognized under the contract would have been $60,000. Wallace's AMT adjustment is:
A)$0.
B)$60,000 negative adjustment.
C)$60,000 positive adjustment.
D)$800,000 positive adjustment.
E)None of the above.
Q2) All of a C corporation's AMT is available for carryover as a minimum tax credit regardless of whether the adjustments and preferences originate from timing differences or AMT exclusions.
A)True
B)False
Q3) Why is there a need for a second tax system called the alternative minimum tax?
Q4) If Jessica exercises an ISO and disposes of the option in the same tax year, are any AMT adjustments required?
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Chapter 16: Accounting Periods and Methods
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Q1) Terry, Inc., makes gasoline storage tanks.All production is done under contract.The company makes three basic models, but each model must be adapted to customer specifications for the location of outlets, insulation, and paint.It takes from three to six months to complete a tank.How should Terry account for the income for the business?
Q2) For a taxpayer who is required to use the percentage of completion method, the taxpayer can elect to defer the recognition of income and the related costs until the taxable year in which cumulative contract costs are at least 25 percent of the estimated contract costs.
A)True
B)False
Q3) For purposes of determining the partnership's tax year, there may be more than one principal partner.
A)True
B)False
Q4) When an accrual basis taxpayer finances the construction of its building by borrowing, the interest is added to the cost of the building.
A)True
B)False
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Chapter 17: Corporations: Introduction and Operating Rules
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Q1) George Judson is the sole shareholder and employee of Black Corporation, a C corporation that is engaged exclusively in engineering services. During the year, Black has gross revenues of $420,000 and operating expenses (excluding salary) of $200,000. Further, Black Corporation pays George a salary of $190,000. The salary is reasonable in amount and George is in the 35% marginal tax bracket irrespective of any income from Black. Assuming that Black Corporation distributes all after-tax income as dividends, how much total combined income tax do Black and George pay in the current year? (Ignore any employment tax considerations.)
A)$66,675.
B)$79,925.
C)$83,325.
D)$87,500.
E)None of the above.
Q2) Peach Corporation had $210,000 of active income, $45,000 of portfolio income, and a $230,000 passive loss during the current year.If Peach is a closely held C corporation that is not a PSC, it can deduct $230,000 of the passive loss in the year.
A)True
B)False
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Chapter 18: Corporations: Organization and Capital Structure
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Q1) Wren Corporation (a minority shareholder in Lark Corporation) has made loans to Lark Corporation that become worthless in the current year.
A)Wren Corporation is not permitted a deduction for the loans.
B)The loans result in a nonbusiness bad debt deduction to Wren Corporation.
C)The loans provide Wren Corporation with a business bad debt deduction.
D)Wren claims a capital loss due to the uncollectible loans.
E)None of the above.
Q2) Even if boot is generated under § 357(b) (i.e., the liability is not supported by a bona fide business purpose), the transferor shareholder may not have to recognize gain.
A)True
B)False
Q3) Lark City donates land worth $300,000 and cash of $100,000 to Orange Corporation as an inducement to locate in the city. Four months later, Orange purchases additional land and a building at a cost of $500,000 and moves its operations to Lark City. Ann, the sole shareholder, contributes equipment (basis of $70,000 and fair market value of $200,000) to help Orange in its new operations. What are the tax consequences of these transfers to Orange Corporation?
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Chapter 19: Corporations: Distributions Not in Complete
Liquidation
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Q1) In the current year, Carnation Corporation has a § 179 expense of $40,000.As a result, in the current year, taxable income must be increased by $32,000 to determine current E & P.
A)True
B)False
Q2) Thrush, Inc., is a calendar year, accrual basis corporation with Henry as its sole shareholder (basis in his stock is $90,000).On January 1 of the current year, Thrush Corporation has accumulated E & P of $200,000.Before considering the effect of the distribution described below, the corporation's current E & P is $50,000.On November 1, Thrush distributes an office building to Henry.The office building has an adjusted basis of $80,000 (fair market value of $100,000) and is subject to a mortgage of $110,000. Assume that the building has been depreciated using the ADS method for both income tax and E & P purposes.What are the tax consequences of the distribution to Thrush and to Henry? (In your answer, be sure to describe the effects on taxable income for both Thrush and Henry, the impact of the distribution on Thrush's E & P, and Henry's basis in the building.)
Q3) When is a redemption to pay death taxes under § 303 most advantageous?
Q4) Explain the stock attribution rules that apply in the case of stock redemptions.
Q5) How does the payment of a property dividend affect E & P?
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Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Q1) What will cause the corporations involved in a § 368 reorganization to recognize gain or loss? What will cause shareholders of the companies involved in the corporate reorganization to recognize gain or loss? If gain is recognized by shareholders, what are the different tax character possibilities?
Q2) The Federal income tax treatment of a corporate restructuring is an extension of allowing entities to form without taxation.
A)True
B)False
Q3) The stock of Tan Corporation (E & P of $1.3 million) is owned as follows: 90% by Egret Corporation (basis of $520,000), and 10% by Zoe (basis of $55,000). Both shareholders acquired their shares in Tan more than six years ago. In the current year, Tan Corporation liquidates and distributes land (fair market value of $1.1 million, basis of $750,000) and equipment (fair market value of $700,000, basis of $410,000) to Egret Corporation, and securities (fair market value of $200,000, basis of $150,000) to Zoe. What are the tax consequences of these distributions to Egret, to Tan, and to Zoe?
Q4) Compare the sale of a corporation's assets with a sale of its stock from the perspective of the seller.
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Chapter 21: Partnerships
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Q1) Sharon contributed property to the newly formed QRST Partnership.The property had a $100,000 adjusted basis to Sharon and a $160,000 fair market value on the contribution date.The property was also encumbered by a $120,000 nonrecourse debt, which was transferred to the partnership on that date.Another partner, Rochelle, shares 30% of the partnership income, gain, loss, deduction, and credit.Under IRS regulations, Rochelle's share of the nonrecourse debt for basis purposes is:
A)$20,000.
B)$30,000.
C)$36,000.
D)$100,000.
E)$120,000.
Q2) Morgan and Kristen formed an equal partnership on August 1 of the current year.Morgan contributed $60,000 cash and land with a basis of $18,000 and a fair market value of $40,000.Kristen contributed equipment with a basis of $42,000 and a value of $100,000.Kristen and Morgan each have a basis of $100,000 in their partnership interests.
A)True
B)False
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Chapter 22: S: Corporations
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Q1) An S corporation recognizes a ____________________ on any distribution of appreciated property.
Q2) As a general rule, where the S corporation provisions are silent, ____________________ rules apply.
Q3) As a general rule, S corporation treatment is not advantageous when the individual tax rate far exceeds the applicable corporate tax rate.
A)True
B)False
Q4) A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to an S corporation on February 14.By the end of the year, $60,000 of these receivables are collected.Calculate any built-in gains tax, assuming that there is sufficient taxable income.
A)$0.
B)$10,000.
C)$21,000.
D)$35,000.
Q5) Discuss the two methods of allocating tax-related items to S corporation shareholders.
Q6) Depreciation recapture income is a ____________________ computed amount.
Page 26
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Chapter 23: Exempt Entities
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Q1) Even though a church is exempt under § 501(c)(3), it is required to obtain IRS approval for its exempt status.
A)True
B)False
Q2) Which of the following exempt organizations are required to file Form 990 (Return of Organization Exempt from Income Tax)?
A)Federal agencies.
B)Churches.
C)Exempt organizations whose annual gross receipts do not exceed $50,000.
D)Private foundations.
E)None of these entities must file Form 990.
Q3) Are some exempt organizations eligible to be recipients of contributions for which the donor does not qualify for a charitable contribution deduction?
Q4) Warmth, Inc., a private foundation, makes an expenditure of $800,000 that should not be made by a private foundation.Calculate the tax on taxable expenditures.Assume that corrective action is taken so that the additional tax does not apply.
Q5) Define average acquisition indebtedness with respect to debt-financed property.
Q6) Identify the components of the tax model for unrelated business taxable income.
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Chapter 24: Multistate Corporate Taxation
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Q1) Typically, a sales/use tax is applied to a retail sale of ____________________ property.
Q2) A local business wants your help in making a decision about a large capital investment. Should your advice concentrate on tax or non-tax implications of the decision?
Q3) Overall tax liabilities typically ____________________ (increase/decrease) if the members of a unitary group begin to include affiliates that generate net operating losses.
Q4) A typical state taxable income addition modification is for the Federal income tax paid for the period.
A)True
B)False
Q5) Typical indicators of nexus include the presence of employees based in the state, and the ownership or lease of realty there.
A)True
B)False
Q6) The sale of groceries to an individual probably is exempt from sales/use tax under the _________________________ rule.
Q7) An ad valorem property tax is based on the asset's current
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Chapter 25: Taxation of International Transactions
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Q1) The IRS can use § 482 reallocations to assure that transactions between related parties are properly reflected in a tax return.
A)True
B)False
Q2) Fulton, Ltd., a foreign corporation, operates a U.S.branch that reports effectively connected U.S.earnings and profits (after income taxes) of $800,000 for the tax year.The branch's U.S.net equity at the beginning of the tax year is $2 million and at the end of the tax year is $1.5 million.Fulton is organized in a nontreaty country.Fulton's dividend equivalent amount for the year is:
A)$1,300,000.
B)$800,000.
C)$500,000.
D)$300,000.
Q3) Which of the following persons typically is concerned with the U.S.-sourcing rules for gross income?
A)Foreign persons with only foreign activities.
B)U.S.persons with U.S.and foreign activities.
C)U.S.persons with only U.S.activities.
D)U.S.persons that earn only tax-exempt income.
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Chapter 26: Tax Practice and Ethics
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Q1) Which statement appearing below does not correctly describe the IRS letter ruling process?
A)They are issued by the Secretary of the Treasury Department.
B)Some letter rulings are of such importance and general interest that they are later published (in anonymous form) as Revenue Rulings.
C)Letter rulings are private and can be seen only by the taxpayer who requested the ruling.
D)Letter rulings can benefit both taxpayers and the IRS.
Q2) A ____________________% penalty may result when a taxpayer overstates by 150% or more the value of an asset contributed to a charity. or
Q3) If the auditor comes to the taxpayer's office to review a tax return, the review is called a(n) ____________________ audit.
Q4) Circular 230 requires that the tax practitioner use the "best practices" of the tax profession in carrying out a tax engagement. Specify what some of these best practices entail.
Q5) A tax professional needs to know how the IRS is structured and how it works to carry out its mission. Evaluate this statement.
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Chapter 28: Income Taxation of Trusts and Estates
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Q1) Which of the following is a typical duty of a trustee?
A)Modify the language of the trust instrument so as to lower the entity's Federal income tax.
B)Make decisions as to how to invest the trust corpus portfolio.
C)Allocate items between income and corpus using Subchapter J rules.
D)All of the above.
Q2) Explain how the Federal income tax law applies to a fiduciary entity like a trust. Is the tax structure similar to that of an individual? A partnership?
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) The Crown Trust distributed one-half of its accounting income to Lee this year.Lee also is allocated one-half of Crown's credit for building low-income housing.
A)True
B)False
Q5) The Form 1041 of a calendar-year trust is due on ____________________ 15.
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