BUSINESS

1 points  

Question 23

  1. Allowing for the cutback adjustment, which of the following trips, if any, will qualify for the travel expense deduction:
    a.a.       Myrna 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.       Paul, a romance language high school teacher, spends summer break in France, Portugal, and Spain improving his language skills.

    c.
    c.       Dr. Brown, a surgeon, attends a two-day seminar on financial planning out of town.

    d.
    d.       Dr. Jones, a general dentist, attends a two-day seminar on dental implants out of town.

    e.
    e.       None of the above.

1 points  

Question 24

  1. Which, if any, of the following is true regarding the deduction for moving expenses:
    a.a.       Meals during move subject to a 50 percent cutback.

    b.
    b.       Classification of deduction as deduction for AGI.

    c.

    c.       Distance test is 35 miles.

    d.
    d.       No longer allowed for self-employed persons.

    e..
    e.       None of the above.

1 points  

Question 25

  1. Which, if any, of the following miscellaneous itemized deductions are not subject to the 2 percent floor:

    a.a.       Work uniforms (not suitable for street wear).

    b.
    b.       Union dues.
    c.
    c.       Gambling losses to the extent of gambling gains.
    d.
    d.       Home office expenses of an employee (the employer provides a regular office).
    e.
    e.       None of the above.

1 points  

Question 26

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

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

    a.a.       $7,700
    b.
    b.       $7,430
    c.
    c.       $7,400
    d.
    d.       $6,230
    e.
    e.       None of the above.

1 points  

Question 27

  1. During the current year, Horace paid the following interest charges:
    Home mortgage                                                                $3,600
    On loan to purchase household furniture                                 400
    On loan to purchase state of Nebraska
    general purpose bonds (wholly tax-exempt)                           600

    If Horace itemizes his deductions from AGI for the current year, the amount deductible as interest expense is:

    a.a.       $4,600

    b.
    b.       $4,000
    c.
    c.       $3,600
    d.
    d.       $4,200
    e.
    e.       None of the above.

1 points  

Question 28

  1. Which of the following items would be miscellaneous deductions, on Schedule A of Form 1040, if they exceed 2 percent of AGI?

    a.a.       Uniforms purchased by an employee for her job and not suitable for normal street wear.
    b.
    b.       Gambling losses (up to the amount of gambling winnings).

    c.
    c.       Medical Expenses.

    d.
    d.       Deductible moving expenses of an employee.

    e.
    e.       None of the above.

1 points  

Question 29

  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.       Casualty and theft losses.

    b.
    b.       Appraisal fee paid to a valuation expert to determine the fair market value of art work donated to a qualified museum.

    c.
    c.       Professional dues paid by an accountant (employed by Ford Motor Co.) to the Institute of Management Accountants.

    d.
    d.       Job hunting costs.

    e.
    e.       None of the above.

1 points  

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