Gross receipts Cost of sales Gross profit Capital gain Capital loss Total income year taxpayer) reported the following transactions, all of which were properly included in a timely filed return. $975,000 (850,000) $125,000 $40,000 (25,000) 15,000 $140,000 a. Presuming the absence of fraud, how much of an omission from gross income would trigger the six-year statute of limitations? 0 X
Gross receipts Cost of sales Gross profit Capital gain Capital loss Total income year taxpayer) reported the following transactions, all of which were properly included in a timely filed return. $975,000 (850,000) $125,000 $40,000 (25,000) 15,000 $140,000 a. Presuming the absence of fraud, how much of an omission from gross income would trigger the six-year statute of limitations? 0 X
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 35P
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Question
F53.
Transcribed Image Text:Loraine (a calendar year taxpayer) reported the following transactions, all of which were properly included in a timely filed return.
Gross receipts
Cost of sales
Gross profit
Capital gain
Capital loss
Total income
$40,000
(25,000)
$975,000
(850,000)
$125,000
15,000
$140,000
a. Presuming the absence of fraud, how much of an omission from gross income would trigger the six-year statute of limitations?
0X
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