Week 8 : Final Week – Final ExamQuestion
\n 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on
\nMarch 1 for $300,000. Before the sale, Evelyn paid the real estate taxes
\n of $3,000 for the calendar year. For income tax purposes, the real
\nestate tax deduction is apportioned as follows: $750 to Evelyn and
\n$2,250 to Drew. Drew’s basis in the residence is: (Points : 5) $297,750.
\n $299,250. $300,750. $302,250. None of the aboveQuestion 2.2.
\n(TCOs 3, 4, 5, & 7) In the current year, Galaxy Corporation, a
\nclosely held C corporation that is not a personal service corporation,
\nhas $80,000 of passive losses, $60,000 of active business income, and
\n$10,000 of portfolio income. How much of the passive loss may Galaxy
\ndeduct in the current year? (Points : 5) $0 $10,000 $60,000 $70,000 None
\n of the aboveQuestion 3.3. (TCOs 3, 4, 5, & 7) Dorothy holds
\n two jobs. Her main job is with Eggplant Corporation, and her part-time
\njob is with Carrot Company. On a typical workday, she drives her car as
\nfollows: home to Eggplant, Eggplant to Carrot, and Carrot to home.
\nApplicable mileage is as follows: \tMilesHome to Eggplant\t4Eggplant to
\nCarrot\t10Carrot to home\t14On a typical day, Dorothy’s deductible mileage is: (Points : 5) 10. 20. 24. 28. None of the aboveQuestion
\n 4.4. (TCOs 3, 4, 5, & 7) Carrie owns a mineral property that had a
\nbasis of $15,000 at the beginning of the year. The property qualifies
\nfor a 22% depletion rate. Gross income from the property was $150,000,
\nand net income before the percentage depletion deduction was $100,000.
\nWhat is Carrie’s tax preference for excess depletion? (Points : 5) $0
\n$15,000 $18,000 $33,000 None of the aboveQuestion 5.5. (TCOs 3,
\n4, 5, & 7) During the past two years, through extensive advertising
\nand improved customer relations, Beech Corporation estimated that it had
\n developed customer goodwill worth $100,000. For the current year,
\ndetermine the amount of goodwill Beech Corporation may amortize. (Points
\n : 5) $3,334 $5,000 $6,667 $20,000 None of the aboveQuestion
\n6.6. (TCOs 3, 4, 5, & 7) Damien, not a dealer in real estate, sold
\nreal estate with a basis of $250,000 for $500,000 cash, a note for
\n$250,000, and the buyer assumed Damien’s mortgage on the property of
\n$125,000. During the year, the purchaser paid Damien $30,000 principal
\nand $72,000 interest on the note and paid $6,000 principal and $18,000
\ninterest on the mortgage he assumed. The contract price for the above
\ntransaction is what amount? (Points : 5) $875,000 $750,000 $625,000
\n$500,000 None of the aboveQuestion 7.7. (TCOs 3, 4, 5, & 7)
\nWhich of the following is not an itemized deduction allowed for AMT
\npurposes? (Points : 5) Casualty losses Gambling losses State income
\ntaxes Medical expenses in excess of 10% of AGI None of the aboveQuestion
\n 8.8. (TCOs 3, 4, 5, & 7) Alex works as an auditor for a major CPA
\nfirm. During the months of August and September of each year, he is
\npermanently assigned to the team auditing of Hummingbird Corporation. As
\n a result, every day he drives from his home to Hummingbird and returns
\nhome after work. Mileage is as follows: \tMilesHome to office\t15Home to
\nHummingbird\t22Office to Hummingbird\t6For the period of August and
\nSeptember, Alex’s deductible mileage for each workday is: (Points : 5)
\n12. 15. 30. 44. None of the aboveQuestion 9.9. (TCOs 7, 8, &
\n 9) Matt and Shanekwa, ages 45 and 44, respectively, file a joint tax
\nreturn for 2012. They provided all of the support for their 24-year-old
\nson, who had $2,500 of gross income. Their 23-year-old daughter, a
\nfull-time student until her graduation on June 14, 2012, earned $6,000,
\nwhich was 45% of her total support during 2012. Her parents provided the
\n remaining support. Matt and Shanekwa also provided total support for
\nShanekwa’s father who is a citizen and life-long resident of Portugal.
\nHow many personal and dependency exemptions can Matt and Shanekwa claim
\non their 2012 income tax return? (Points : 5) Five Four Three Two None
\nof the aboveQuestion 10.10. (TCOs 2, 8, & 9) Shaquille
\noperates a drug-running operation and incurred the following
\nexpenses:Salaries\t$200,000Illegal kickbacks\t$32,000Bribes to border
\nguards\t$24,000Cost of goods sold\t$300,000Rent\t$12,000Interest
\n$18,000Which of the above amounts reduces his taxable income? (Points :
\n5) $230,000 $300,000 $386,000 $586,000 None of the aboveQuestion
\n 11.11. (TCOs 2, 8, & 9) During 2012, Robin sold the following
\nassets: business equipment for a $6,000 loss, stock investment for a
\n$15,000 loss, and her principal residence for a $14,000 loss. Presuming
\nadequate income, how much of these losses may Robin claim on her 2012
\nreturn? (Points : 5) $3,000 $9,000 $21,000 $35,000 None of the aboveQuestion
\n 12.12. (TCOs 2 & 11) Nicholas loaned Lyle (a friend) $30,000 in
\n2011 with the agreement that the loan would be repaid in two years. In
\n2012, Lyle filed for bankruptcy and Nicholas learned that he could
\nexpect to receive $0.50 on the dollar. In 2012, final settlement was
\nmade and Nicholas received $16,000. Assuming the loan is a nonbusiness
\nbad debt, how should Nicholas account for the bad debt? (Points : 5)
\n$14,000 ordinary loss in 2012 $15,000 ordinary loss in 2010, and $9,000
\nordinary loss in 2012 $14,000 short-term capital loss in 2012 275
\n$15,000 short-term capital loss in 2010, and $9,000 short-term capital
\nloss in 2012 None of the aboveQuestion 13.13. (TCOs 2 & 11)
\nKelsey, a stock broker, owns a separate business in which he
\nparticipates in the current year. He has one employee who works
\npart-time in the business. Which of the following statements is correct?
\n (Points : 5) If Kelsey participates for 300 hours and the employee
\nparticipates for 300 hours during the year, then Kelsey does not qualify
\n as a material participant. If Kelsey participates for 50 hours and the
\nemployee participates for 2 hours during the year, then Kelsey probably
\ndoes not qualify as a material participant. If Kelsey participates for
\n501 hours and the employee participates for 2,000 hours during the year,
\n then Kelsey does not qualify as a material participant. Kelsey will
\nautomatically be a material participant in an activity in the current
\nyear if he was a material participant in a personal service activity for
\n the three prior years. All of the aboveQuestion 14.14. (TCOs 2
\n& 11) During the year, Clara took a trip from Chicago to Rome. She
\nwas away from home for 20 days. She spent 6 days vacationing and 14 days
\n on business (including the 3 travel days). Her expenses are as
\nfollows:Airfare\t$1,600Lodging (20 days x $70)\t$1,400Meals (20 days x
\n$120)\t$2,400Valet service (cleaning of laundry)\t$160Chris’s deduction is: (Points : 5) $3,100. $4,360. $5,080. $5,560. None of the aboveQuestion
\n 15.15. (TCOs 2 & 11) In January, Charlie sold stock with a cost
\nbasis of $40,000 to his brother Allen for $30,000, the fair market value
\n of the stock on the date of sale. Five months later, Allen sold the
\nsame stock through his broker for $45,000. What is the tax effect of
\nthese transactions? (Points : 5) Disallowed loss to Allen of $10,000;
\nrecognized gain to Charlie of $5,000 Disallowed loss to Charlie of
\n$10,000; recognized gain to Allen of $15,000 Deductible loss to Charlie
\nof $10,000; recognized gain to Allen of $15,000 Disallowed loss to
\nCharlie of $10,000; recognized gain to Allen of $5,000 None of the aboveWeek 8 : Final Week – Final ExamQuestion
\n 1.1. (TCO 1) Which of the following is a judicial source of the tax
\nlaw? (Points : 5) Revenue Procedure 99-12 108 T.C. 384 (1997) \u00c2\u00a7 61 of
\nthe Internal Revenue Code All of the above None of the aboveQuestion
\n 2.2. (TCOs 2, 3, 6, 8, 9, & 10) Which, if any, of the following is a
\n deduction from AGI? (Points : 5) Individual retirement account
\ncontributions Moving expenses Investment interest expense One-half of
\nself-employment tax paid All of the aboveQuestion 3.3. (TCOs 2,
\n3, 6, 8, 9, & 10) Sergio lives in an apartment building and has a
\n2-year lease that began 13 months ago. His landlord is willing to pay
\nSergio $2,000 to vacate the apartment immediately. The landlord wants to
\n sell the building to a buyer who will convert the building into
\ncondominiums. Sergio’s lease on the apartment is a capital asset, but
\nhas no tax basis. The $2,000 Sergio will receive if he accepts the
\nlandlord’s offer will be: (Points : 5) an ordinary gain. a short-term
\ncapital loss. a long-term capital gain. a short-term capital gain.
\nexcludible from gross income.Question 4.4. (TCOs 2, 3, 6, 8, 9,
\n& 10) Rockwell purchased a tract of land for $125,000 in 2004 when
\nhe heard that a new highway was going to be constructed through the
\nproperty and that the land would soon be worth $300,000. Highway
\nengineers surveyed the property and indicated that he would probably get
\n $200,000. The highway project ( help with nursing paper writing from experts with MSN & DNP degrees) was abandoned in 2012, and the value of
\nthe land fell to $80,000. What is the amount of loss Rockwell can claim
\nin 2012? (Points : 5) $0 $100,000 $175,000 None of the aboveQuestion
\n 5.5. (TCOs 2, 3, 6, 8, 9, & 10) Donald has a $20,000 disallowed
\nloss from a sale of property to a related taxpayer. The property was
\nsold for $70,000. Donald uses the $70,000 to purchase different property
\n than the property that was sold. Which of the statements below is
\ncorrect concerning the property Donald purchased? (Points : 5) The basis
\n of the property purchased is $50,000 ($70,000-$20,000). The holding
\nperiod of the property sold carries over to the property purchased.
\nDonald will be able to offset his $20,000 disallowed loss against any
\nrealized gain he has when he sells the property purchased. The related
\ntaxpayer will be able to offset as much of this $20,000 disallowed loss
\nas is necessary to reduce his realized gain to $0 when he sells the
\nproperty. None of the aboveQuestion 6.6. (TCOs 2, 3, 6, 8, 9,
\n& 10) A taxpayer who loses in the U.S. Court of Federal Claims may
\nappeal directly to the: (Points : 5) U.S. Court of Appeals (Regional
\nCircuit). U.S. Court of Appeals (Federal Circuit). U.S. District Court.
\nU.S. Supreme Court. None of the aboveQuestion 7.7. (TCO 6)
\nEighteen-year residential real property owned by an individual has
\naccumulated accelerated depreciation of $275,000 at January 1, 2012. If
\ndepreciation had been computed under the straight-line method,
\naccumulated depreciation would be $200,000. The property is sold on
\nJanuary 1, 2012 with a recognized gain of $300,000. What is the amount
\nof depreciation recapture? (Points : 5) $75,000 $200,000 $275,000
\n$300,000 None of the aboveQuestion 8.8. (TCO 6) Opal, Inc. owns a
\n delivery truck that initially cost $40,000. After a depreciation of
\n$15,000 had been deducted, the truck was traded-in on a new truck that
\ncost $50,000. Opal was required to pay the car dealer $10,000 in cash.
\nWhat is Opal’s basis for the new truck? (Points : 5) $0 $35,000 $50,000
\n$65,000 None of the aboveQuestion 9.9. (TCO 6) Judy exchanges a
\nrental house at the beach with an adjusted basis of $165,000 and a fair
\nmarket value of $150,000 for a rental house at the mountains with a fair
\n market value of $100,000 and cash of $50,000. What is the recognized
\ngain or loss? (Points : 5) $0 $100,000 $50,000 ($15,000) None of the
\naboveQuestion 10.10. (TCO 6) Terron gives her son stock with a
\nbasis in her hands of $225,000 and a fair market value of $180,000. No
\ngift tax is paid. Her son subsequently sells the stock for $190,000.
\nWhat is his recognized gain or loss? (Points : 5) $0 ($45,000) ($35,000)
\n $10,000 None of the aboveQuestion 11.11. (TCOs 2, 6, & 11)
\nJuaquin owns five activities. He elects not to group them together as a
\nsingle activity under the appropriate economic unit standard. He
\nparticipates for 140 hours in Activity A, 165 hours in Activity B, 196
\nhours in Activity C, 100 hours in Activity D, and 85 hours in Activity
\nE. Which of the following statements is CORRECT? (Points : 5) Activities
\n A, B, C, D, and E are all significant participation activities.
\nActivities A, B, C, and D are all significant participation activities.
\nJuaquin is a material participant with respect to Activities A, B, and C
\n only. Juaquin is a material participant with respect to Activities A,
\nB, C, D, and E. None of the aboveWeek 8 : Final Week – Final ExamQuestion
\n 1.1. (TCOs 1, 2, 4, & 7) Dabney and Nancy are married, both
\ngainfully employed, and have two children who are 3 and 6 years old.
\nDabney’s salary is $35,000 while Nancy’s salary is $40,000. During the
\nyear, they spend $7,000 for child care expenses that are required so
\nboth of them can work outside of the home. Calculate the credit for
\nchild and dependent care expenses. (Points : 15) Question 2.2.
\n(TCOs 1, 3, & 10) In 2012, Walter had the following
\ntransactions:Salary\t$80,000Capital loss from a stock investment
\n($4,000)Moving expense to change jobs\t($10,000)Received repayment of
\n$10,000 loan he made to his brother in 2007 (includes interest of
\n$1,000)\t$11,000Property taxes on personal residence\t$2,000Based on the
\ninformation given above, determine Walter’s AGI. Be sure to show your
\nwork. (Points : 15) Question 3.3. (TCOs 9 & 12) In
\nconnection with facilitating the function of the IRS in the
\nadministration of the tax laws, comment on the utility of the following:
\n I) the power to make adjustments to properly reflect a taxpayer’s
\nincome, and II) the availability of interest and penalties for taxpayer
\nnoncompliance. (Points : 15) Question 4.4. (TCOs 1 & 5)
\nSteve has a tentative general business credit of $85,000 for the current
\n year. His net regular tax liability before the general business credit
\nis $95,000, and his tentative minimum tax is $90,000. Compute Steve’s
\nallowable general business credit for the year. (Points : 20) Week 8 : Final Week – Final ExamQuestion
\n 1.1. (TCOs 1, 6, 8, & 11) Faith inherited an undivided interest in a
\n parcel of land from her father on February 15, 2012. Her father had
\npurchased the land on August 25,1965, and his basis for the land was
\n$325,000. The fair market value of the land is $1,250,000 on the date of
\n her father’s death and is $1,100,000 six months later. The executor
\nelects the alternate valuation date. Faith has nine brothers and sisters
\n and each inherited a one-tenth interest.I) What is Faith’s adjusted
\nbasis for her one-tenth undivided interest?II) What is her holding
\nperiod for the land? (Points : 20) Question 2.2. (TCOs 2, 3, & 11) Discuss the computation of percentage depletion. (Points : 15) Question
\n 3.3. (TCOs 1, 2, 3, & 11) Travel status requires that the taxpayer
\nbe away from home overnight. I) What does away from home overnight mean?
\n II) What tax advantages result from being in travel status? (Points :
\n10) Question 4.4. (TCOs 1, 2, 3, & 11)
\nRachel owns rental properties. When Rachel rents to a new tenant, she
\nusually requires the tenant to pay an amount in addition to the first
\nmonth’s rent. The additional amount serves as security for damages to
\nthe property and the tenant’s failure to pay future rents. How should
\nthe payments be characterized (e.g., on lease documents) to minimize
\nRachel’s current tax liability? (Points : 10)<\/p>\n","protected":false},"excerpt":{"rendered":"
Week 8 : Final Week – Final ExamQuestion 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000.\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7641,8827,10535,10533,10534,10531,10529,6744,10532,10530,7741],"tags":[10553,10549,10616,10615,7687,10254,10627,10104,10247,8857,10552,10295,10900,2984,3903,10548,10622,8901,10551,8907],"class_list":["post-127128","post","type-post","status-publish","format-standard","hentry","category-australia-essay-writers","category-australia-essays","category-do-my-university-assignment-for-me","category-essay-pro-dissertation-writers","category-homework-help-services-best-websites","category-i-need-help-writing-a-page-paper-assignment","category-masters-essays","category-nursing-studybay","category-pay-someone-to-write-a-paper-for-you","category-website-that-writes-assignments","category-studybay","tag-1-assignment-help-online-service-for-students-in-the-usa","tag-ai-plagiarism-free-essay-writing-tool","tag-australian-best-tutors","tag-best-trans-tutors","tag-buy-essay-uk","tag-can-someone-write-my-assignment-for-me","tag-cheap-dissertation-writer","tag-essypro","tag-help-me-write-my-dissertation","tag-help-with-writing-an-essay","tag-help-write-my-paper-ai-free","tag-homework-for-you","tag-nursing-bay","tag-nursing-essay","tag-nursing-study-bay","tag-online-essay-writers","tag-phd-essays","tag-studbay","tag-write-my-assignment-help-for-college-students","tag-write-my-essay-for-me"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/127128","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=127128"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/127128\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=127128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=127128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=127128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}