Reference no: EM133260606

1. Justine, one of your clients, is employed as a financial consultant. Justine has accumulated over 100,000 frequent flyer miles related to company business trips. Justine wants to know if the value of the free miles is taxable to her when used to purchase airline tickets. Using a keyword search, you locate a paragraph in Chapter "J" of the Federal Tax Coordinator Analysis dealing with taxability of frequent flyer miles. What are the last two numbers of the paragraph? For example, the last two number of paragraph J-6412 is 12.

a. 53.

b. 06.

c. 03.

d. 93.

e. None of the above.

2. Your clients, Ronald and Rita, are going through a bitter divorce. Rita moved out of their joint residence but has not yet taken all of her clothes, despite being repeatedly asked to do so by Ronald. This so annoys Ronald that, one day, he gathers up all of Rita's remaining clothes, puts them in a big pot on the stove, and sets them on fire. After making sure the fire was out, Ronald left the house to go on a long walk. Unfortunately, the fire was not completely out and spread rapidly. The house and its contents were destroyed. Because of the circumstances, Ronald's insurance company refuses to pay. Ronald wants you to find out whether he would be able to deduct his loss related to the fire on his tax return. You remember hearing about a tax court case with the exact same facts. You find the case in Checkpoint using a keyword search. The first four letters of the taxpayer's first name are:

a. REID.

b. FRED.

c. BILT.

d. DANI.