l Quiz 1 Question 1. 1. During the year, Susanne took a trip from New York City
ID: 2479781 • Letter: L
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l
Quiz 1
Question 1.1. During the year, Susanne took a trip from New York City to Cairo, Egypt. She was away from home for 16 days. She spent four days vacationing and twelve days on business (including the three travel days). Her expenses are as follows:Air fare: $1,600
Lodging (16 days X $70): $1,120
Meals (16 days X $120): $1,920
Valet service (cleaning of laundry): $160
Susanne's deduction is: (Points : 5) $2,760
$2,920
$4,640
$4,800
None of the above Question 2.2. In 2009, Alison had a § 179 deduction carryover of $35,000. In 2010, she elected § 179 for an asset acquired at a cost of $230,000. Alison's § 179 business income limitation for 2010 is $50,000. Determine Alison's § 179 deduction for 2010. (Points : 5) $15,000
$50,000
$250,000
$265,000
None of the above Question 3.3. The only asset Benjamin purchased during 2010 was a used seven-year class asset. The asset, which was listed property, was acquired on June 17 at a cost of $25,000. The asset was used 40% for business, 30% for the production of income, and the rest of the time for personal use. Benjamin always elects to expense the maximum amount under § 179 whenever it is applicable. The net income from the business before the § 179 deduction is $100,000. Determine Benjamin's maximum deduction with respect to the property for 2010. (Points : 5) $500
$1,250
$3,500
$25,000
None of the above Question 4.4. Barry made the following gifts during the year:
To Wallace, a key client ($4 of the amount listed was for gift wrapping): $47
To Kevin, Barry's secretary, on Kevin's birthday: $39
To Bethany, Barry's boss, at Christmas: $35
Presuming proper substantiation, Barry's deduction is: (Points : 5) $50
$54
$75
$121
None of the above Question 5.5. Antonia holds two jobs. Her main job is with Raven Corporation and her part-time job is with Sparrow Company. On a typical workday, she drives her car as follows: home to Raven, Raven to home (for dinner), home to Sparrow, and Sparrow to home. Applicable mileage is as follows:
Home to Raven: 4 miles.
Raven to Sparrow: 10 miles.
Sparrow to home: 6 miles.
On a typical day, Antonia's deductible mileage is: (Points : 5) 4
10
16
20
None of the above Question 6.6. Which, if any, of the following expenses are deductible as miscellaneous itemized deductions? (Points : 5) Home office expenses
Appraisal fees to establish the amount of a casualty loss.
Subscription to the New England Journal of Medicine by an employed doctor.
Investment expenses.
All of the above Question 7.7. On March 15, 2010, Margo purchased a used automobile that cost $15,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car.) Determine the cost recovery deduction for 2011. (Points : 5) $3,360
$3,430
$4,800
$4,900
None of the above Question 8.8. During the year, Robert is transferred by his employer from Boston to Seattle. His moving expenses are not reimbursed and are as follows:
Cost of moving household furnishings: $6,000
Transportation: $2,000
Meals: $800
Lodging: $1,400
His qualified moving expenses are: (Points : 5) $10,200
$9,400
$7,400
$6,000
None of the above
Explanation / Answer
Answer:1
Since Susanne is away from home for more than 7 days and 25% of the time is devoted to personal purposes, only 75% (12 days business/ 16 days total) of the transportation is deductible . Her deduction is as follows:
Airfare (75% * 1600) = 1200
Lodging (12 days *$70 ) = 840
Meals[50% (12 days *$120)] = 720
Valet service = 160
Total deduction = $2920
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