Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Tax Exam Essay

Open Document

Below is an essay on "Tax Exam" from Anti Essays, your source for research papers, essays, and term paper examples.

Fall 2007, Test II, Multiple Choice

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. Alice purchased an office condominium on September 20, 2007, for $200,000. On October 10, she purchased business assets (seven-year property) for $80,000. Alice did not elect to expense any of the assets under § 179, nor did she elect straight-line cost recovery. Determine the cost recovery deduction for the business assets for 2007.
a.|$2,856.|
b.|$25,999.|
c.|$32,002.|
d.|$41,428.|


____ 2. On May 15, 2007, Brent purchased a truck for $40,000. The truck weighed less than 13,000 lbs. Brent used the truck in connection with his farming business. Brent does not elect to expense assets under § 179. Determine the cost recovery deduction for 2007.
a.|$4,000.|
b.|$6,000.|
c.|$8,000.|
d.|$10,000.|


____ 3. During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange Corporation may amortize.
a.|$16,667.|
b.|$26,667.|
c.|$33,333.|
d.|$100,000.|
e.|None of the above.|


____ 4. Orange Corporation begins business on April 2, 2007. The corporation has start-up expenditures of $54,000. If Orange Corporation elects § 195, determine the total amount that Orange may deduct in 2007.
a.|$1,000.|
b.|$2,650.|
c.|$3,650.|
d.|$5,000.|


____ 5. Statutory employees:
a.|Report their expenses on Form 2106.|
b.|Include common law employees.|
c.|Are subject to income tax withholdings.|
d.|Claim their expenses as deductions for AGI.|
e.|None of the above.|


____ 6. Allowing for the cutback adjustment (50% reduction for meals and entertainment), which of the following trips, if any, will qualify for the travel expense deduction?
a.|Dr. Jones, a general dentist, attends a two-day seminar on developing a dental practice.|
b.|Dr. Brown,...

Show More


Citations

MLA Citation

"Tax Exam". Anti Essays. 10 Dec. 2018

<http://snehaedu.com/free-essays/Tax-Exam-546849.html>

APA Citation

Tax Exam. Anti Essays. Retrieved December 10, 2018, from the World Wide Web: http://snehaedu.com/free-essays/Tax-Exam-546849.html