{"id":124180,"date":"2023-02-14T00:00:00","date_gmt":"2023-02-14T00:00:00","guid":{"rendered":"https:\/\/nursingstudybay.com\/2023\/02\/14\/acct-426-multiple-choice-accounting-homework-help\/"},"modified":"2023-02-14T00:00:00","modified_gmt":"2023-02-14T00:00:00","slug":"acct-426-multiple-choice-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/www.studyproessays.com\/help\/acct-426-multiple-choice-accounting-homework-help\/","title":{"rendered":"Acct 426 multiple choice | Accounting homework help"},"content":{"rendered":"

<\/p>\n

\n
\n

\u00a0<\/p>\n

Question 1<\/strong><\/h3>\n
    \n
  1. At one point in time, there was no cutback adjustment applicable to business meals. True
    False<\/li>\n<\/ol>\n

    0.5 points \u00a0<\/strong>\u00a0<\/p>\n

    Question 2<\/strong><\/h3>\n
      \n
    1. Transportation expenses are more broadly defined in the Code than are travel expenses. True
      False<\/li>\n<\/ol>\n

      0.5 points \u00a0<\/strong>\u00a0<\/p>\n

      Question 3<\/strong><\/h3>\n
        \n
      1. Employees who render an adequate accounting to the employer and are fully reimbursed will still not avoid the 2 percent of AGI floor on such expenses. True
        False<\/li>\n<\/ol>\n

        0.5 points \u00a0<\/strong>\u00a0<\/p>\n

        Question 4<\/strong><\/h3>\n
          \n
        1. The cost of a CPA review course is deductible as an education expense of an employee. True
          False<\/li>\n<\/ol>\n

          0.5 points \u00a0<\/strong>\u00a0<\/p>\n

          Question 5<\/strong><\/h3>\n
            \n
          1. A room in a residence that is used both for personal and business cannot qualify for the office in the home deduction even if the business use predominates. True
            False<\/li>\n<\/ol>\n

            0.5 points \u00a0<\/strong>\u00a0<\/p>\n

            Question 6<\/strong><\/h3>\n
              \n
            1. Richard owns a principal residence in New Orleans, a vacation lodge in Montana, and a yacht (with living quarters – cooking, sleeping, bathroom facilities) on the Mississippi River. All three properties have mortgages on which Richard pays interest. Qualified residence interest cannot include the interest paid on the mortgage covering the yacht.\n

              True
              False<\/p>\n<\/li>\n<\/ol>\n

              0.5 points \u00a0<\/strong>\u00a0<\/p>\n

              Question 7<\/strong><\/h3>\n
                \n
              1. If a taxpayer makes a contribution of ordinary income property, the amount of the deduction is equal to the basis usually of the property.\n

                True
                False<\/p>\n<\/li>\n<\/ol>\n

                0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                Question 8<\/strong><\/h3>\n
                  \n
                1. Tom pays half of the premiums related to coverage under his employer’s group medical plan, and his employer pays the other half. No portion of the total premium is deductible as a medical expense by Tom.\n

                  True
                  False<\/p>\n<\/li>\n<\/ol>\n

                  0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                  Question 9<\/strong><\/h3>\n
                    \n
                  1. Ina pays $320 to license her car, of which $280 is based on the value of the car. She can deduct $320 as an itemized deduction.\n

                    True
                    False<\/p>\n<\/li>\n<\/ol>\n

                    0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                    Question 10<\/strong><\/h3>\n
                      \n
                    1. In no case may the cutback adjustment (on the itemized deductions) be more than 70 percent of the covered itemized deductions.\n

                      True
                      False<\/p>\n<\/li>\n<\/ol>\n

                      0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                      Question 11<\/strong><\/h3>\n
                        \n
                      1. The realized gain or loss is the difference between the amount realized from a sale or other disposition and the property’s adjusted basis.\n

                        True
                        False<\/p>\n<\/li>\n<\/ol>\n

                        0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                        Question 12<\/strong><\/h3>\n
                          \n
                        1. The adjusted basis of property is not increased by the cost of repairs and maintenance to the property.\n

                          True
                          False<\/p>\n<\/li>\n<\/ol>\n

                          0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                          Question 13<\/strong><\/h3>\n
                            \n
                          1. Gift property has a zero basis to the donee because the donee did not pay anything for the property.\n

                            True
                            False<\/p>\n<\/li>\n<\/ol>\n

                            0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                            Question 14<\/strong><\/h3>\n
                              \n
                            1. The basis of inherited property is usually its fair market value on the date of the decedent’s death.\n

                              True
                              False<\/p>\n<\/li>\n<\/ol>\n

                              0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                              Question 15<\/strong><\/h3>\n
                                \n
                              1. Gains and losses on nontaxable exchanges are deferred because the tax law recognizes that nontaxable exchanges result in a change in the form but not the substance of the taxpayer’s relative economic position. True
                                False<\/li>\n<\/ol>\n

                                0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                Question 16<\/strong><\/h3>\n
                                  \n
                                1. Net long-term capital gains may be taxed at a lower rate than ordinary gains.\n

                                  True
                                  False<\/p>\n<\/li>\n<\/ol>\n

                                  0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                  Question 17<\/strong><\/h3>\n
                                    \n
                                  1. Corporate taxpayers carry unused capital losses, short-term or long-term, back 3 years and forward 5 years.\n

                                    True
                                    False<\/p>\n<\/li>\n<\/ol>\n

                                    0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                    Question 18<\/strong><\/h3>\n
                                      \n
                                    1. If Section 1231 losses exceed Section 1231 gains, the excess is treated as a short-term capital loss for an individual.\n

                                      True
                                      False<\/p>\n<\/li>\n<\/ol>\n

                                      0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                      Question 19<\/strong><\/h3>\n
                                        \n
                                      1. If depreciation taken on property subject to Section 1245 is more than the gain recognized from its sale, the entire depreciation is recaptured as ordinary income.\n

                                        True
                                        False<\/p>\n<\/li>\n<\/ol>\n

                                        0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                        Question 20<\/strong><\/h3>\n
                                          \n
                                        1. When Section 1239 (relating to the sale of depreciable property between related taxpayers) applies, it results in the entire gain being treated as Section 1231 gain.\n

                                          True
                                          False<\/p>\n<\/li>\n<\/ol>\n

                                          0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                          Question 21<\/strong><\/h3>\n
                                            \n
                                          1. John performs services for Paul.\u00a0 Which, if any, of the following factors would help to verify John’s status as an independent contractor (rather than as an employee):\n

                                            a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0John furnishes his own tools.<\/p>\n

                                            b.
                                            b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Paul specifies John’s work schedule.<\/p>\n

                                            c.
                                            c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0John is paid by the hour rather than for the job performed.<\/p>\n

                                            d.
                                            d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Paul tells John what to do and supervises his work.<\/p>\n

                                            e.
                                            e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                            1 points \u00a0<\/strong>\u00a0<\/p>\n

                                            Question 22<\/strong><\/h3>\n
                                              \n
                                            1. Which, if any, of the characteristics listed below do not correctly reflect the concept of tax home:\n

                                              a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The taxpayer need not be away from home for a 24-hour period to meet the “overnight” test.<\/p>\n

                                              b.
                                              b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The tax home will change if a temporary assignment elsewhere exceeds one year.
                                              c.
                                              c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0It is possible for some taxpayers never to be away from their tax home (i.e., the tax home follows them).<\/p>\n

                                              d.
                                              d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The tax home is the area where the taxpayer derives the principal source of income.<\/p>\n

                                              e.
                                              e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0All of the above are correct.<\/p>\n<\/li>\n<\/ol>\n

                                              1 points \u00a0<\/strong>\u00a0<\/p>\n

                                              Question 23<\/strong><\/h3>\n
                                                \n
                                              1. Allowing for the cutback adjustment, which of the following trips, if any, will qualify for the travel expense deduction:
                                                a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Myrna went on a two-week vacation in Boston. While there, she visited her employer’s home office to have lunch with former co-workers.
                                                b.
                                                b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Paul, a romance language high school teacher, spends summer break in France, Portugal, and Spain improving his language skills.\n

                                                c.
                                                c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Dr. Brown, a surgeon, attends a two-day seminar on financial planning out of town.<\/p>\n

                                                d.
                                                d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Dr. Jones, a general dentist, attends a two-day seminar on dental implants out of town.<\/p>\n

                                                e.
                                                e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                Question 24<\/strong><\/h3>\n
                                                  \n
                                                1. Which, if any, of the following is true regarding the deduction for moving expenses:
                                                  a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Meals during move subject to a 50 percent cutback.\n

                                                  b.
                                                  b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Classification of deduction as deduction for AGI.<\/p>\n

                                                  c. <\/p>\n

                                                  c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Distance test is 35 miles.<\/p>\n

                                                  d.
                                                  d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0No longer allowed for self-employed persons.<\/p>\n

                                                  e..
                                                  e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                  1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                  Question 25<\/strong><\/h3>\n
                                                    \n
                                                  1. Which, if any, of the following miscellaneous itemized deductions are not subject to the 2 percent floor:\n

                                                    a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Work uniforms (not suitable for street wear).<\/p>\n

                                                    b.
                                                    b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Union dues.
                                                    c.
                                                    c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Gambling losses to the extent of gambling gains.
                                                    d.
                                                    d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Home office expenses of an employee (the employer provides a regular office).
                                                    e.
                                                    e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                    1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                    Question 26<\/strong><\/h3>\n
                                                      \n
                                                    1. Irene is a resident of a state that imposes an income tax.\u00a0 Information regarding Irene’s state income tax transactions is as follows:
                                                      Taxes withheld this year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,400
                                                      Refund received this year from overpayment
                                                      \u00a0 of last year’s tax liability\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,200
                                                      Deficiency assessed for two years ago
                                                      \u00a0 (as a result of audit by the state)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,000
                                                      Interest on the deficiency\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 300\n

                                                      Both the two-year-old deficiency and interest thereon were paid by Irene this year.\u00a0 If Irene elects to itemize her deductions this year, how much of the above transactions can be claimed?<\/p>\n

                                                      a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$7,700
                                                      b.
                                                      b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$7,430
                                                      c.
                                                      c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$7,400
                                                      d.
                                                      d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$6,230
                                                      e.
                                                      e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                      1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                      Question 27<\/strong><\/h3>\n
                                                        \n
                                                      1. During the current year, Horace paid the following interest charges:
                                                        Home mortgage\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $3,600
                                                        On loan to purchase household furniture\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 400
                                                        On loan to purchase state of Nebraska
                                                        \u00a0 general purpose bonds (wholly tax-exempt)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 600\n

                                                        If Horace itemizes his deductions from AGI for the current year, the amount deductible as interest expense is:<\/p>\n

                                                        a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$4,600<\/p>\n

                                                        b.
                                                        b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$4,000
                                                        c.
                                                        c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$3,600
                                                        d.
                                                        d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$4,200
                                                        e.
                                                        e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                        1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                        Question 28<\/strong><\/h3>\n
                                                          \n
                                                        1. Which of the following items would be miscellaneous deductions, on Schedule A of Form 1040, if they exceed 2 percent of AGI?\n

                                                          a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Uniforms purchased by an employee for her job and not suitable for normal street wear.
                                                          b.
                                                          b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Gambling losses (up to the amount of gambling winnings).<\/p>\n

                                                          c.
                                                          c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Medical Expenses.<\/p>\n

                                                          d.
                                                          d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Deductible moving expenses of an employee.<\/p>\n

                                                          e.
                                                          e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                          1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                          Question 29<\/strong><\/h3>\n
                                                            \n
                                                          1. Which of the following items would be an itemized deduction, On Schedule A of Form 1040, not subject to the 2 percent of AGI floor?
                                                            a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Casualty and theft losses.\n

                                                            b.
                                                            b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Appraisal fee paid to a valuation expert to determine the fair market value of art work donated to a qualified museum.<\/p>\n

                                                            c.
                                                            c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Professional dues paid by an accountant (employed by Ford Motor Co.) to the Institute of Management Accountants.<\/p>\n

                                                            d.
                                                            d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Job hunting costs.<\/p>\n

                                                            e.
                                                            e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                            1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                            Question 30<\/strong><\/h3>\n
                                                              \n
                                                            1. David, a calendar year married taxpayer, files a joint return for 2017.\u00a0 Information for the year includes the following:
                                                              AGI (including wagering gains)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $371,800
                                                              State income taxes\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15,000
                                                              Charitable contributions\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 16,000
                                                              Wagering losses (wagering gains were $22,000)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20,000\n

                                                              David’s allowable itemized deductions for the year are:<\/p>\n

                                                              a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$51,000
                                                              b.
                                                              b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$29,260<\/p>\n

                                                              c.
                                                              c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$49,260<\/p>\n

                                                              d.
                                                              d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$31,000<\/p>\n

                                                              e.
                                                              e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                              1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                              Question 31<\/strong><\/h3>\n
                                                                \n
                                                              1. The bank forecloses on Lisa’s apartment complex. The property had been pledged as security on a nonrecourse mortgage, whose principal amount at the date of foreclosure is $900,000.\u00a0 The adjusted basis of the property is $500,000, and the fair market value is $900,000.\u00a0 What is Lisa’s recognized gain or loss?
                                                                a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00\n

                                                                b.
                                                                b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<$500,000><\/p>\n

                                                                c.
                                                                c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$400,000<\/p>\n

                                                                d.
                                                                d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<$900,000><\/p>\n

                                                                e.
                                                                e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                Question 32<\/strong><\/h3>\n
                                                                  \n
                                                                1. Khalid sells two personal use assets during the taxable year.\u00a0 A gain of $3,000 is realized on the sale of one asset and a loss of $9,000 is realized on the sale of another asset.\u00a0 What is his recognized gain or loss?
                                                                  a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$0\n

                                                                  b.
                                                                  b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<$9,000><\/p>\n

                                                                  c.
                                                                  c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$3,000
                                                                  d.
                                                                  d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<$6,000><\/p>\n

                                                                  e.
                                                                  e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                  1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                  Question 33<\/strong><\/h3>\n
                                                                    \n
                                                                  1. Gift property (disregarding any adjustment for gift tax paid by the donor):
                                                                    a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Has the same basis to the donee as the donors adjusted basis if the donee disposes of the property at a loss, and the fair market value on the date of gift was less than the donor’s adjusted basis.
                                                                    b.
                                                                    b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Has no basis to the donee if the fair market value on the date of gift is less than the donor’s adjusted basis.
                                                                    c.
                                                                    c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Has no basis to the donee because he or she did not pay anything for the property.\n

                                                                    d.
                                                                    d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Has the same basis to the donee as the donor’s adjusted basis if the donee disposes of the property at a gain.<\/p>\n

                                                                    e.
                                                                    e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                    1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                    Question 34<\/strong><\/h3>\n
                                                                      \n
                                                                    1. If a like-kind exchange, if boot received is greater than the realized gain:\n

                                                                      a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No gain or loss is recognized.
                                                                      b.
                                                                      b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Loss is recognized to the extent of the excess of the boot received over the realized gain.<\/p>\n

                                                                      c.
                                                                      c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Gain is recognized to the extent of the realized gain.<\/p>\n

                                                                      d.
                                                                      d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Gain is recognized to the extent of the boot received.<\/p>\n

                                                                      e.
                                                                      e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                      1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                      Question 35<\/strong><\/h3>\n
                                                                        \n
                                                                      1. Which of the following qualify as replacement property under Section 1033 (nonrecognition of gain from an involuntary conversion)? (Taxpayer owns the building)\n

                                                                        1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 An office building occupied by the taxpayer that was destroyed by a fire is replaced with a warehouse which is to be used to store taxpayer’s inventory.
                                                                        2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A shopping center leased to various retail tenants is destroyed by a tornado.\u00a0 The shopping center is to be replaced with a warehouse which is to be leased to various tenants.
                                                                        3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 An office building occupied by the taxpayer is condemned.\u00a0 The building is to be replaced with a warehouse which is to be leased to various tenants.<\/p>\n

                                                                        a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01
                                                                        b.
                                                                        b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02
                                                                        c.
                                                                        c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03
                                                                        d.
                                                                        d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01 and 3<\/p>\n

                                                                        e.
                                                                        e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02 and 3<\/p>\n<\/li>\n<\/ol>\n

                                                                        1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                        Question 36<\/strong><\/h3>\n
                                                                          \n
                                                                        1. Which of the following are capital assets?\n

                                                                          a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Investment property held by a trade or business.<\/p>\n

                                                                          b.
                                                                          b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Inventory.<\/p>\n

                                                                          c.
                                                                          c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Certain copyrights, literary or musical compositions held by the person whose efforts created the property.<\/p>\n

                                                                          d.
                                                                          d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Accounts receivable associated with the sale of inventory.<\/p>\n

                                                                          e.
                                                                          e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                          1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                          Question 37<\/strong><\/h3>\n
                                                                            \n
                                                                          1. Bea has the following capital gains and losses this year:\n

                                                                            LTCG\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $15,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0STCG $15,000
                                                                            LTCL\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0STCL\u00a0 $ 5,000<\/p>\n

                                                                            What are Bea’s net long-term and short-term gains?
                                                                            a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0NSTCG = $30,000 NLTCG = $ 0<\/p>\n

                                                                            b.
                                                                            b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0NLTCG = $ 5,000 NSTCG = $10,000<\/p>\n

                                                                            c.
                                                                            c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0NLTCG = $ 5,000 NSTCG + $15,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
                                                                            d.
                                                                            d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0NLTCG = $15,000 NSTCG = $15,000<\/p>\n

                                                                            e.
                                                                            e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                            1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                            Question 38<\/strong><\/h3>\n
                                                                              \n
                                                                            1. For this year, Wilma is a single individual whose taxable income puts her into the 33% bracket. Wilma’s taxable income includes so much long-term capital gain that her ordinary taxable income is not large enough to get her out of the 15% bracket.
                                                                              a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0All of Wilma’s long-term capital gain will be taxed at 15%.
                                                                              b.
                                                                              b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Some of Wilma’s long-term capital gain will be taxed at 33%.
                                                                              c.
                                                                              c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Some of Wilma’s long-term capital gain will be taxed at 0% as long as the gain is not taxed at the special rates for certain 1250 real estate or collectibles.\n

                                                                              d.
                                                                              d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Wilma is not eligible for the alternative tax on long-term capital gains.<\/p>\n

                                                                              e.
                                                                              e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                              1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                              Question 39<\/strong><\/h3>\n
                                                                                \n
                                                                              1. Orange, Inc. buys a sandwich-making machine for $35,000 on April 1, this year.\u00a0 The machine is used in Orange’s business.\u00a0 As of December 31, this year, the machine is classified as:
                                                                                a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A capital asset.\n

                                                                                b.
                                                                                b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A Section 1231 asset.<\/p>\n

                                                                                c.
                                                                                c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A casualty asset.<\/p>\n

                                                                                d.
                                                                                d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0An ordinary asset.<\/p>\n

                                                                                e.
                                                                                e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                                1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                Question 40<\/strong><\/h3>\n
                                                                                  \n
                                                                                1. Alice owns nonresidential rental real estate which was purchased in 1985.\u00a0 Straight-line depreciation was used on the asset. The property is sold at a $150,000 gain this year. The initial characterization of the gain is:
                                                                                  a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Section 1245 gain.\n

                                                                                  b.
                                                                                  b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Section 1250 gain.<\/p>\n

                                                                                  c.
                                                                                  c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Section 1231 gain.<\/p>\n

                                                                                  d.
                                                                                  d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Section 179 gain.<\/p>\n

                                                                                  e.
                                                                                  e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                                  1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                  Question 41<\/strong><\/h3>\n
                                                                                    \n
                                                                                  1. MACRS means modified accelerated cost recovery system.\n

                                                                                    True
                                                                                    False<\/p>\n<\/li>\n<\/ol>\n

                                                                                    0.5 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                    Question 42<\/strong><\/h3>\n
                                                                                      \n
                                                                                    1. A professor living in San Diego (with a home there) and with a one-year contract at CSU-SB could most likely, under IRS rules, regard the appointment as temporary and deduct expenses of staying overnight in San Bernardino.\n

                                                                                      True
                                                                                      False<\/p>\n<\/li>\n<\/ol>\n

                                                                                      0.5 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                      Question 43<\/strong><\/h3>\n
                                                                                        \n
                                                                                      1. A medical doctor at a continuing medical education seminar in Orlando from his Anchorage home could most likely deduct the cost of the seminar and the travel to and from it and lodging.\n

                                                                                        True
                                                                                        False<\/p>\n<\/li>\n<\/ol>\n

                                                                                        0.5 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                        Question 44<\/strong><\/h3>\n
                                                                                          \n
                                                                                        1. The threshold for cutback of itemized deductions (the phaseout) is based on AGI but is not adjusted for inflation.\n

                                                                                          True
                                                                                          False<\/p>\n<\/li>\n<\/ol>\n

                                                                                          0.5 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                          Question 45<\/strong><\/h3>\n
                                                                                            \n
                                                                                          1. Code section 1231 often (barring non-recaptured 1231 losses) gives the best of both worlds: capital gain and ordinary loss.\n

                                                                                            True
                                                                                            False<\/p>\n<\/li>\n<\/ol>\n

                                                                                            0.5 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                            Question 46<\/strong><\/h3>\n
                                                                                              \n
                                                                                            1. The Soliman<\/u> case, regarding home offices, was repealed by legislative changes to I.R.C. 280A.\n

                                                                                              True
                                                                                              False<\/p>\n<\/li>\n<\/ol>\n

                                                                                              0.5 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                              Question 47<\/strong><\/h3>\n
                                                                                                \n
                                                                                              1. Under the current tax law, the self-employed health insurance premium deduction:\n

                                                                                                a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Is deductible above-the-line.<\/p>\n

                                                                                                b.
                                                                                                b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Is 100% deductible.<\/p>\n

                                                                                                c.
                                                                                                c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Was only deductible on Schedule A if not fully deductible above-the-line.<\/p>\n

                                                                                                d.
                                                                                                d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0All of the above.
                                                                                                e.
                                                                                                e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above.<\/p>\n<\/li>\n<\/ol>\n

                                                                                                1 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                Question 48<\/strong><\/h3>\n
                                                                                                  \n
                                                                                                1. The Taxpayer Relief Act of 1997 (changing treatment of the sale of principal residences)\n

                                                                                                  a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Changed the Section 121 exclusion.
                                                                                                  b.
                                                                                                  b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Repealed the Residential Rollover (Section 1034).<\/p>\n

                                                                                                  c.
                                                                                                  c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Both of the above.<\/p>\n

                                                                                                  d.
                                                                                                  d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Neither A nor B.<\/p>\n<\/li>\n<\/ol>\n

                                                                                                  1 points (Extra Credit) \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                  Question 49<\/strong><\/h3>\n
                                                                                                    \n
                                                                                                  1. The taxpayer was permanently transferred from Denver to New York City and incurred the following expenses:
                                                                                                    House-hunting trip (including $400 for meals)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $1,000
                                                                                                    Temporary living expenses for 20 days
                                                                                                    \u00a0\u00a0 (including $500 for meals)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,000
                                                                                                    Travel expense during move
                                                                                                    \u00a0\u00a0 (including $300 for meals\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,000
                                                                                                    Moving company’s charges\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,000
                                                                                                    Brokers fee on sale of home\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 4,000<\/u>
                                                                                                    \u00a0$11,000
                                                                                                    49.\u00a0\u00a0\u00a0\u00a0 If the above move occurred this year, the deduction would be:
                                                                                                    a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero
                                                                                                    b.
                                                                                                    b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$4,700\n

                                                                                                    c.
                                                                                                    c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$7,940<\/p>\n

                                                                                                    d.
                                                                                                    d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$5,000<\/p>\n

                                                                                                    e.
                                                                                                    e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                    1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                    Question 50<\/strong><\/h3>\n
                                                                                                      \n
                                                                                                    1. If the above move occurred this year and the employer reimbursed the employee for all expenses:
                                                                                                      a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The deductible portion of the expenses reimbursed is excludible.\n

                                                                                                      b.
                                                                                                      b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The entire reimbursement is excluded from income.<\/p>\n

                                                                                                      c.
                                                                                                      c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The deductible portion of the expenses reimbursed is includible.<\/p>\n

                                                                                                      d.
                                                                                                      d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                      1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                      Question 51<\/strong><\/h3>\n
                                                                                                        \n
                                                                                                      1. During this year, T, who is under 65, paid the following expenses:
                                                                                                        Medical\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,000
                                                                                                        City assessment for repaving the street
                                                                                                        \u00a0 where T’s residence is located\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 800
                                                                                                        Qualified residence interest\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,600
                                                                                                        State income tax\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,000
                                                                                                        T’s adjusted gross income is $40,000\n

                                                                                                        51.\u00a0\u00a0\u00a0\u00a0 T’s medical deduction would be:<\/p>\n

                                                                                                        a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$5,000<\/p>\n

                                                                                                        b.
                                                                                                        b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$2,000
                                                                                                        c.
                                                                                                        c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$1,000<\/p>\n

                                                                                                        d.
                                                                                                        d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero<\/p>\n

                                                                                                        e.
                                                                                                        e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                        1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                        Question 52<\/strong><\/h3>\n
                                                                                                          \n
                                                                                                        1. The amount of the city assessment included in the itemized deductions is.\n

                                                                                                          a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0It depends<\/p>\n

                                                                                                          b.
                                                                                                          b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$800
                                                                                                          c.
                                                                                                          c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero
                                                                                                          d.
                                                                                                          d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                          1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                          Question 53<\/strong><\/h3>\n
                                                                                                            \n
                                                                                                          1. T’s total itemized deductions based on the above information are:\n

                                                                                                            a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $11,400<\/p>\n

                                                                                                            b.
                                                                                                            b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $4,600<\/p>\n

                                                                                                            c.
                                                                                                            c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $7,600<\/p>\n

                                                                                                            d.
                                                                                                            d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $6,600<\/p>\n<\/li>\n<\/ol>\n

                                                                                                            1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                            Question 54<\/strong><\/h3>\n
                                                                                                              \n
                                                                                                            1. X Corporation exchanged a warehouse located in New York for a warehouse located in New Jersey.\u00a0 The adjusted basis of the New York warehouse was $30,000.\u00a0 The fair market value of the New Jersey warehouse just prior to the exchange was $25,000.\u00a0 In addition to the warehouse, X Corporation also received $8,000 in cash.\n

                                                                                                              54.\u00a0\u00a0\u00a0\u00a0 The amount realized by X Corporation is:<\/p>\n

                                                                                                              a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$8,000<\/p>\n

                                                                                                              b.
                                                                                                              b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$33,000<\/p>\n

                                                                                                              c.
                                                                                                              c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$25,000<\/p>\n

                                                                                                              d.
                                                                                                              d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero
                                                                                                              e.
                                                                                                              e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                              1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                              Question 55<\/strong><\/h3>\n
                                                                                                                \n
                                                                                                              1. The gain realized by X Corporation is:\n

                                                                                                                a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$5,000
                                                                                                                b.
                                                                                                                b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero<\/p>\n

                                                                                                                c.
                                                                                                                c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$3,000<\/p>\n

                                                                                                                d.
                                                                                                                d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                Question 56<\/strong><\/h3>\n
                                                                                                                  \n
                                                                                                                1. The gain recognized by X Corporation on the exchange is:\n

                                                                                                                  a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$8,000
                                                                                                                  b.
                                                                                                                  b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$3,000<\/p>\n

                                                                                                                  c.
                                                                                                                  c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero<\/p>\n

                                                                                                                  d.
                                                                                                                  d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                  1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                  Question 57<\/strong><\/h3>\n
                                                                                                                    \n
                                                                                                                  1. The basis for X Corporation in the property received, the warehouse in New Jersey, is:\n

                                                                                                                    a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$33,000
                                                                                                                    b.
                                                                                                                    b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$30,000<\/p>\n

                                                                                                                    c.
                                                                                                                    c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$25,000<\/p>\n

                                                                                                                    d.
                                                                                                                    d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                    1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                    Question 58<\/strong><\/h3>\n
                                                                                                                      \n
                                                                                                                    1. On August 5, this year, taxpayer (who is under age 55) sells his principal residence with an adjusted basis of $65,000 for $175,000.\u00a0 He pays $10,500 in commissions and $1,200 in legal fees in connection with the sale.\u00a0 One month before the sale, taxpayer painted the house at a cost of $1,500 and repaired various items at a cost of $2,500.\u00a0 On August 15, this year, taxpayer purchases a new home for $125,000.\u00a0 The taxpayer owned the sold principal residence for more than five years and lived in it for more than two years just prior to the sale.
                                                                                                                      58.\u00a0\u00a0\u00a0\u00a0 The amount realized on the sale of this house is:\n

                                                                                                                      a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$175,000
                                                                                                                      b.
                                                                                                                      b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$164,500<\/p>\n

                                                                                                                      c.
                                                                                                                      c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$163,300<\/p>\n

                                                                                                                      d.
                                                                                                                      d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero<\/p>\n

                                                                                                                      e.
                                                                                                                      e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                      1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                      Question 59<\/strong><\/h3>\n
                                                                                                                        \n
                                                                                                                      1. The gain realized on the sale of the above house is:\n

                                                                                                                        a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$98,300<\/p>\n

                                                                                                                        b.
                                                                                                                        b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$99,500<\/p>\n

                                                                                                                        c.
                                                                                                                        c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$110,000<\/p>\n

                                                                                                                        d.
                                                                                                                        d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                        1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                        Question 60<\/strong><\/h3>\n
                                                                                                                          \n
                                                                                                                        1. The “adjusted basis” of the old residence for taxpayer is:\n

                                                                                                                          a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$175,000<\/p>\n

                                                                                                                          b.
                                                                                                                          b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$163,300<\/p>\n

                                                                                                                          c.
                                                                                                                          c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$161,800
                                                                                                                          d.
                                                                                                                          d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$159,300<\/p>\n

                                                                                                                          e.
                                                                                                                          e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                          1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                          Question 61<\/strong><\/h3>\n
                                                                                                                            \n
                                                                                                                          1. The recognized gain on the sale of the old principal residence is:\n

                                                                                                                            a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Zero
                                                                                                                            b.
                                                                                                                            b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$34,300<\/p>\n

                                                                                                                            c.
                                                                                                                            c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$98,300<\/p>\n

                                                                                                                            d.
                                                                                                                            d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$50,000<\/p>\n

                                                                                                                            e.
                                                                                                                            e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                            1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                            Question 62<\/strong><\/h3>\n
                                                                                                                              \n
                                                                                                                            1. The basis of the new residence acquired is:
                                                                                                                              a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$54,000\n

                                                                                                                              b.
                                                                                                                              b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$61,000<\/p>\n

                                                                                                                              c. \u00a0
                                                                                                                              c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$98,300<\/p>\n

                                                                                                                              d. d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$125,000<\/p>\n

                                                                                                                              e. e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                              1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                              Question 63<\/strong><\/h3>\n
                                                                                                                                \n
                                                                                                                              1. A business machine, which cost $10,000 two years ago, was sold on January 1, this year, for $19,000.\u00a0 Depreciation was as follows for the calendar-year taxpayer:\n

                                                                                                                                Actual Depreciation\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Straight-line Would
                                                                                                                                \u00a0Allowed and Allowable<\/u> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Have<\/u> Been\u00a0\u00a0\u00a0<\/u><\/p>\n

                                                                                                                                Two years ago\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $1,429\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $1,000
                                                                                                                                Last year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 2,<\/u>449\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 2,000
                                                                                                                                This year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 875<\/u> \u00a0\u00a0\u00a0\u00a0\u00a0 500<\/u>
                                                                                                                                $4,753\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $3,500<\/p>\n

                                                                                                                                63.\u00a0\u00a0\u00a0\u00a0 The adjusted basis of the property sold is:<\/p>\n

                                                                                                                                a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$5,247<\/p>\n

                                                                                                                                b.
                                                                                                                                b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$6,500<\/p>\n

                                                                                                                                c.
                                                                                                                                c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$10,000<\/p>\n

                                                                                                                                d.
                                                                                                                                d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                Question 64<\/strong><\/h3>\n
                                                                                                                                  \n
                                                                                                                                1. The gain realized and recognized on the sale is:\n

                                                                                                                                  a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$9,000<\/p>\n

                                                                                                                                  b.
                                                                                                                                  b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$12,500
                                                                                                                                  c.
                                                                                                                                  c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$13,753.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
                                                                                                                                  d.
                                                                                                                                  d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$19,000<\/p>\n

                                                                                                                                  e.
                                                                                                                                  e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                  1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                  Question 65<\/strong><\/h3>\n
                                                                                                                                    \n
                                                                                                                                  1. The character or nature of the gain realized and recognized is:\n

                                                                                                                                    a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0All ordinary income
                                                                                                                                    b.
                                                                                                                                    b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0All capital gain<\/p>\n

                                                                                                                                    c.
                                                                                                                                    c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$4,753 ordinary income, $9,000 1231 capital gain<\/p>\n

                                                                                                                                    d.
                                                                                                                                    d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$3,500 ordinary income, $9,000 1231 capital gain<\/p>\n

                                                                                                                                    e.
                                                                                                                                    e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                    1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                    Question 66<\/strong><\/h3>\n
                                                                                                                                      \n
                                                                                                                                    1. Eighteen-year ACRS nonresidential real property owned by an individual has accumulated accelerated depreciation of $975,000 at January 1, of this year.\u00a0 This property is sold on January 1, this same year.\u00a0 The original cost of the property was $975,000.\u00a0 The sale price was $1,000,000.\n

                                                                                                                                      66.\u00a0\u00a0\u00a0\u00a0 The amount of the realized and recognized gain is:<\/p>\n

                                                                                                                                      a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$60,000
                                                                                                                                      b.
                                                                                                                                      b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$150,000
                                                                                                                                      c.
                                                                                                                                      c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$175,000<\/p>\n

                                                                                                                                      d.
                                                                                                                                      d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$1,000,000<\/p>\n

                                                                                                                                      e.
                                                                                                                                      e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                      1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                      Question 67<\/strong><\/h3>\n
                                                                                                                                        \n
                                                                                                                                      1. The character or nature of the gain realized and recognized is:\n

                                                                                                                                        a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0All ordinary gain
                                                                                                                                        b.
                                                                                                                                        b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0All capital gain
                                                                                                                                        c.
                                                                                                                                        c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$105,000 capital gain, $70,000 ordinary income<\/p>\n

                                                                                                                                        d.
                                                                                                                                        d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$25,000 capital gain, $975,000 ordinary income<\/p>\n

                                                                                                                                        e.
                                                                                                                                        e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                        1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                        Question 68<\/strong><\/h3>\n
                                                                                                                                          \n
                                                                                                                                        1. If the property had been depreciated using the straight-line method, which of the answers to question 67 would now be correct?\n

                                                                                                                                          a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All ordinary gain
                                                                                                                                          b.
                                                                                                                                          b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All capital gain<\/p>\n

                                                                                                                                          c.
                                                                                                                                          c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $105,000 capital gain, $70,000 ordinary income
                                                                                                                                          d.
                                                                                                                                          d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $25,000 capital gain, $975,000 ordinary income
                                                                                                                                          e.
                                                                                                                                          e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                          1 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                          Question 69<\/strong><\/h3>\n
                                                                                                                                            \n
                                                                                                                                          1. The half-year conventions used by the ACRS rules and the MACRS rules are the same. True
                                                                                                                                            False<\/li>\n<\/ol>\n

                                                                                                                                            0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                            Question 70<\/strong><\/h3>\n
                                                                                                                                              \n
                                                                                                                                            1. Under MACRS rules, a mid-quarter convention is required if more than 40% of the value of personal property is placed in service during the fourth quarter of the year.\n

                                                                                                                                              True
                                                                                                                                              False<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                              0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                              Question 71<\/strong><\/h3>\n
                                                                                                                                                \n
                                                                                                                                              1. For personal property placed in service after December 31, 1992, the S 179 maximum deduction is limited to $17,500.\n

                                                                                                                                                True
                                                                                                                                                False<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                                0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                                Question 72<\/strong><\/h3>\n
                                                                                                                                                  \n
                                                                                                                                                1. The more-than 50% business use only test applies to passenger automobiles.\n

                                                                                                                                                  True
                                                                                                                                                  False<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                                  0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                                  Question 73<\/strong><\/h3>\n
                                                                                                                                                    \n
                                                                                                                                                  1. The Alternate Depreciation System (ADS) is used to calculate depreciation for AMT.\n

                                                                                                                                                    True
                                                                                                                                                    False<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                                    0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                                    Question 74<\/strong><\/h3>\n
                                                                                                                                                      \n
                                                                                                                                                    1. Acquired goodwill is amortized over a 15-year period, with a half-year convention.\n

                                                                                                                                                      True
                                                                                                                                                      False<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                                      0.5 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                                      Question 75<\/strong><\/h3>\n
                                                                                                                                                        \n
                                                                                                                                                      1. 75-76. Polly purchased a new factory building in April, 5 years ago for $5,000,000. On March 3, this year, the building was sold.\n

                                                                                                                                                        75.\u00a0\u00a0\u00a0\u00a0 To calculate the cost recovery in the year of disposition, the percentage from the table must be multiplied by:<\/p>\n

                                                                                                                                                        a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02
                                                                                                                                                        b.
                                                                                                                                                        b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01<\/p>\n

                                                                                                                                                        c.
                                                                                                                                                        c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02.5 over 12<\/p>\n

                                                                                                                                                        d.
                                                                                                                                                        d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03.5 over 12<\/p>\n

                                                                                                                                                        e.
                                                                                                                                                        e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                                        1.75 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                                        Question 76<\/strong><\/h3>\n
                                                                                                                                                          \n
                                                                                                                                                        1. The allowable cost recovery in the year of disposition is:\n

                                                                                                                                                          a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$26,708
                                                                                                                                                          b.
                                                                                                                                                          b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$33,073<\/p>\n

                                                                                                                                                          c.
                                                                                                                                                          c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$66,146
                                                                                                                                                          d.
                                                                                                                                                          d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$396,876<\/p>\n

                                                                                                                                                          e.
                                                                                                                                                          e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                                          1.75 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                                          Question 77<\/strong><\/h3>\n
                                                                                                                                                            \n
                                                                                                                                                          1. 77-78. Rocky bought 7-year class property on January 4, this year, for $120,000. Assume his business income is $6,000 before the deduction for the Section 179 expense.\n

                                                                                                                                                            77.\u00a0\u00a0\u00a0\u00a0 The amount of the currently deductible 179 expense is:
                                                                                                                                                            a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$4,000<\/p>\n

                                                                                                                                                            b.
                                                                                                                                                            b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$6,000<\/p>\n

                                                                                                                                                            c.
                                                                                                                                                            c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$10,000<\/p>\n

                                                                                                                                                            d.
                                                                                                                                                            d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n

                                                                                                                                                            1.75 points \u00a0<\/strong>\u00a0<\/p>\n

                                                                                                                                                            Question 78<\/strong><\/h3>\n
                                                                                                                                                              \n
                                                                                                                                                            1. The MACRS table percentage (if the table is to be used) which would be applied to the remaining basis of the asset to calculate cost recovery in the first year (in addition to the 179 expense) is:\n

                                                                                                                                                              a.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0.1429<\/p>\n

                                                                                                                                                              b.
                                                                                                                                                              b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00<\/p>\n

                                                                                                                                                              c.
                                                                                                                                                              c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0.20<\/p>\n

                                                                                                                                                              d.
                                                                                                                                                              d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0None of the above<\/p>\n<\/li>\n<\/ol>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

                                                                                                                                                              \u00a0 Question 1 At one point in time, there was no cutback adjustment applicable to business meals. TrueFalse 0.5 points \u00a0\u00a0 Question 2 Transportation expenses\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10601,10596,10882,479,537,172,478,10597,10599,10595],"tags":[10524,10522,10890,10561,10883,10889,10515,10521,10696,10518,10888,10887,10886,10885,10884,10525],"class_list":["post-124180","post","type-post","status-publish","format-standard","hentry","category-assignment-help-by-uks-no-1-writing-service","category-assignment-writers-canada-university-cost","category-free-ai-english-assignment-writers-china","category-nursing-course-hero","category-nursing-essay-pro","category-nursing-study-bay","category-nursing-study-pool","category-professional-assignment-writers-usa","category-uae-1-cheap-assignment-writing-service","category-write-a-word-essay","tag-apa-citation-format-assignment","tag-assignment-writers-australia-college-student","tag-best-nursing-case-study-writing-services","tag-buy-essay-usa","tag-case-study-nursing-writing-services-for-care-plans","tag-free-nursing-case-study-writing-services","tag-help-write-a-page-assignment","tag-i-need-someone-to-do-my-assignment-within-hours","tag-need-assistance-completing-the-assignment","tag-need-to-write-an-essay","tag-nursing-case-studies-with-answers","tag-nursing-case-study-paper-example","tag-nursing-case-study-template-examples-of-case-studies-nursing","tag-pharmacology-case-study","tag-soap-note-case-study","tag-write-pages"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/124180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=124180"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/124180\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=124180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=124180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=124180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}