im taking a federal tax class right now and have a 35 multiple

Customer Question

i'm taking a federal tax class right now and have a 35 multiple choice question test due tonight and i only have two hours from the time i open the test to submit the correct answers.

Submitted: 283 days and 4 hours ago.

Category: Multiple Problems

Value: $39

Status: CLOSED

Expert: FiveStarLaw replied 283 days and 4 hours ago.

FiveStarLaw :

Thank you so much for requesting me. I am happy to assist you with your assignment however your assignment requires that I give you my undivided attention and not answer other questions. Therefore would you consider increasing the amount you are willing to pay – preferably in the form of a bonus.

FiveStarLaw :

Are you there

Expert: FiveStarLaw replied 283 days and 4 hours ago.

Thank you so much for requesting me. I am happy to assist you with your assignment however your assignment requires that I give you my undivided attention and not answer other questions. Therefore would you consider increasing the amount you are willing to pay – preferably in the form of a bonus.

FiveStarLaw41086.81588125

Customer replied 283 days and 4 hours ago.

I've never done this before would I just copy and paste the questions to you? And my friend told me you can tip if you get a good grade is that what you mean?

Expert: FiveStarLaw replied 283 days and 4 hours ago.

Yes you can cut and paste or upload the entire file to a 3rd party sharing site such as www.mediafire.com.

You may add an additional tip if you receive a good grade but that is not what I meant. I usually answer several questions simultaneously and must use my time wisely. I cannot devote the time that you need for the amount that you have offered to pay. I would require a minimum of $30 bonus

Customer replied 283 days and 4 hours ago.

$69? I don't know the going rate that number was picked by the website not me

Expert: FiveStarLaw replied 283 days and 4 hours ago.

That is interesting. I don't receive all of the money. I receive a percentage of what you have paid the website and a percentage of the bonus.

Customer replied 283 days and 4 hours ago.

so what do I do? I don't care how its split up I'll do whatever you want in that respect I just beef a total number

Expert: FiveStarLaw replied 283 days and 4 hours ago.

Just agree to leave the $30 bonus and that will be fine :-) Are you ready to start now?

Customer replied 283 days and 4 hours ago.

So $69? That seems pricey, no? My friend did a 50 problem test with no multiple choice and he only paid 50 does it change by category our something?

Expert: FiveStarLaw replied 283 days and 4 hours ago.

Yes the category does affect the price. You are not required to proceed. Please let me know either way

Customer replied 283 days and 3 hours ago.

i don't think i can upload it so i would have to just copy and paste should i do it in this question box? i could send you a few at a time if that helps or would you prefer it all in one box?

Expert: FiveStarLaw replied 283 days and 3 hours ago.

Yes you can copy and paste into the question box in whichever manner as fastest and easiest for you.

Customer replied 283 days and 3 hours ago.

ok are you ready to start right now?

Expert: FiveStarLaw replied 283 days and 3 hours ago.

yes

Customer replied 283 days and 3 hours ago.

1. Which of the following taxes is regressive? (Points : 5)

a. Federal Insurance Contributions Act (FICA)
b. excise tax
c. property tax
d. gift tax

2. All of the following items are generally excluded from income except (Points : 5)

a. child support payments.
b. interest on corporate bonds.
c. interest on state and local government bonds.
d. life insurance proceeds paid by reason of death.

3. All of the following items are deductions for
(not from) adjusted gross income except (Points : 5)

a. moving expenses.
b. unreimbursed employee business expenses.
c. qualifying contributions to individual retirement accounts.
d. one-half of self-employment taxes paid.

4. The unified transfer tax system (Points : 5)

a. imposes a single tax upon transfers of property during an individual's lifetime only.
b. imposes a single tax upon transfers of property during an individual's life and at death.
c. imposes a single tax upon transfers of property only at an individual's death.
d. none of above.

5. Alex is a calendar year sole proprietor. He began business on December 1, this year. He uses the accrual method of accounting. Alex had the following collections in December.

Collected $7,000 in December, from clients who paid cash for services to be performed next year.
Collected $5,000 in December, for services performed during December; deposited in an operating account on December 31, this year.
Collected $12,000 in December; on accounts receivable for services performed in December; deposited in operating account on January 2, next year.

What is the amount Alex must include in his income for December? (Points : 5)

a. $7,000
b. $12,000
c. $17,000
d. $24,000

6. Amy's employer provides her with several fringe benefits. Which of the following are included in her taxable income? (Points : 5)

a. Christmas bonus check
b. group term life insurance premium paid by employer for $40,000 coverage for Amy
c. employee discount
d. employer's contribution to retirement plans on Amy's behalf

7. In December 2011, Max, a cash basis taxpayer, rents an apartment to Kadeem. Max receives both the first and last months' rent totaling $1,800 plus a security deposit of $400. The amount of income reported as taxable in 2011 is (Points : 5)

a. $400.
b. $1,300.
c. $1,800.
d. $2,200.

8. Hoyt rented office space two years ago to Harris, receiving the first and last months' rent plus a security deposit of $1,000. In early January of this year, Harris moves and Hoyt refunds $250 of the deposit and keeps the remainder to cover $500 which is spent for repairs to the office space and one week of unpaid rent that amounts to $250. How would this information be reflected on Hoyt's tax return this year? (Points : 5)

a. $750 income and $500 deduction
b. $750 income and no deduction
c. $250 income and $500 deduction
d. $750 income and $500 deduction

9. Mae Li is beneficiary of a $70,000 insurance policy on her father's life. Upon his death, she elects to receive the proceeds in installments from the insurance company that carries the policy. She will receive $16,000 per year for five years. What are the tax consequences each year? (Points : 5)

a. All $16,000 each year is taxable.
b. $10,000 interest is taxable in the first year.
c. There is no taxable income.
d. $2,000 of the $16,000 payment is taxable each year.

10. Sarah receives a $15,000 scholarship from City University. The university specifies that $8,000 is for tuition, books, supplies, and equipment for classes. The other $7,000 is for room and board. Sarah works ten hours per week as a grader, for which she is paid $7,500 for the year. Of the total amount received, Sarah must include the following amount in gross income (Points : 5)

a. $7,000.
b. $7,500.
c. $14,500.
d. $22,500.

11. Britney is beneficiary of an $150,000 insurance policy on her father's life. Upon his death, she may elect to receive the proceeds in five yearly installments of $32,000 or may take the $150,000 lump sum. She elects to take the lump sum payment. What are the tax consequences in year one? (Points : 5)

a. All $32,000 each year is taxable.
b. $10,000 interest is taxable in the first year.
c. There is no taxable income.
d. The lump sum payment is taxable.

12. During the year, Cathy received the following:
• Dividends of $4,000 from Lindsay Corporation. Cathy's father owned the stock and directed the corporation to send the dividends to Cathy.
• A car worth $30,000 for being the 100th customer at a car dealership.
• $5,500 cash gift from her uncle.
• $10,000 inheritance from her grandmother.

What amount must Cathy include in gross income? (Points : 5)

a. $30,000
b. $34,000
c. $39,500
d. $49,500

13. Allison buys equipment and pays cash of $50,000, signs a note of $10,000 and assumes a liability on the property for $3,000. Also, Allison pays an installation cost of $500 and a delivery cost of $800. Allison's basis in the asset is (Points : 5)

a. $60,000.
b. $63,000.
c. $63,500.
d. $64,300.

14. During the current year, Tony purchased new car wash equipment for use in his service station business. Tony's costs in connection with the purchase were as follows:

Cost of the equipment	$45,000
Sales tax on the equipment	4,000
Delivery charges	600
Installation and testing charges	3,000
Expenses of operating the equipment	2,000

What is Tony's basis in the car wash equipment? (Points : 5)

a. $49,000
b. $49,600
c. $52,600
d. $54,600

15. Dale gave property with a basis of $16,000 to Sarah when it had a FMV of $12,000. Sarah later sold the property for $22,000 resulting in a recognized gain of (Points : 5)

a. $-0-.
b. $4.000.
c. $6,000.
d. $12,000.

16. Richard exchanges a building with a FMV of $75,000, a basis of $35,000, and subject to a liability of $25,000 for land with a FMV of $50,000 owned by Bill. What is the amount of Richard's realized gain? (Points : 5)

a. $0
b. $15,000
c. $25,000
d. $40,000

17. Maria pays the following legal and accounting fees during the year:

Legal fees in connection with trade or business	$4,000
Legal fees related to purchase of personal residence	2,600
Legal fees related to tax deficiency related to Schedule A itemized deductions	500
Tax return preparation fees: Allocable to preparation of Schedule C	2,000
Tax return preparation fees: Allocable to preparation of remainder of return	2,100

What is the total amount of her for AGI deduction for these fees? (Points : 5)

a. $4,000
b. $6,000
c. $8,100
d. $11,200

18. During the current year, Martin purchases undeveloped land as an investment. Martin intends to rent the land as pastureland and hopefully sell it later for a profit. In the current year, Martin receives no rent but he does pay taxes of $2,800, mortgage interest of $900 and liability insurance of $500. How much of these expenses can Martin deduct (before any limitations) on his current tax return? (Points : 5)

a. $0
b. $1,400
c. $3,700
d. $4,200

19. Leigh pays the following legal and accounting fees during the year:

Legal fees in connection with a contract dispute in her trade or business	$8,800
Legal fees related to resolving a tax deficiency related to business	4,000
Tax return preparation fees: Allocable to Schedules A and B	1,000
Tax return preparation fees: Allocable to Schedule C	1,200
Legal fees incident to a divorce	5,000

What is the total amount of her for AGI deduction for these fees? (Points : 5)

a. $10,800
b. $14,000
c. $15,000
d. $20,000

20. During the current year, the United States files criminal and civil actions against Joe, the CEO of Box Corporation, and Jane, the president of Cable Corporation, for price fixing. Both enter pleas of no contest and appropriate judgments are entered. Subsequent to this action, Square Corporation sues both Box and Cable for treble damages of $6,000,000. In settlement, Box and Cable each pay Square $1,200,000. What is the maximum amount that Box and Cable may each deduct? (Points : 5)

a. $400,000
b. $1,200,000
c. $2,000,000
d. $6,000,000

21. On September 1, of the current year, Samuel, a cash-basis taxpayer, sells his farm to Edward, also a cash-basis taxpayer for $100,000. Samuel's basis in the farm is $65,000. The real property tax year is the calendar year. Real estate taxes on the property for the year are $3,650 and are payable on April 1 of the following year. The sales agreement does not provide for apportionment of real estate taxes between the buyer and seller. Assume Samuel pays all of the real estate taxes prior to the sale. The effects of this sales structure will be: (Points : 5)

a.

Taxes allocated to Samuel	Taxes allocated to Edward	Effect on Samuel's Gain
$1,220	$2,430	increase gain by $1,220

b.

Taxes allocated to Samuel	Taxes allocated to Edward	Effect on Samuel's Gain
$2,430	$1,220	increase gain by $2,430

c.

Taxes allocated to Samuel	Taxes allocated to Edward	Effect on Samuel's Gain
$2,430	$1,220	decrease gain by $2,430

d.

Taxes allocated to Samuel	Taxes allocated to Edward	Effect on Samuel's Gain
$1,220	$2,430	decrease gain by $1,220

22. Doug pays a county personal property tax on his automobile of $1,500. The $1,500 includes $800 based on the weight of the car and $700 based on the value of the car. How much of the tax can Doug deduct on his tax return? (Points : 5)

a. $0
b. $700
c. $800
d. $1,500

23. Alan, who is a security officer, is shot while on the job. As a result, Alan suffers from a leg injury and must spend most of his time in a wheelchair until his recovery. Alan's physician recommends that he install a whirlpool bath in his home for therapy. During the year, Alan makes the following expenditures:

Wheelchair	$ 1,200
Whirlpool bath	2,000
Maintenance of the whirlpool	250
Increased utility bills associated with whirlpool	450
Entrance ramp, various home modifications	7,200

A professional appraiser tells Alan that the whirlpool has increased the value of his home by $1,000. Alan's deductible medical expenses (before considering limitations based on AGI) will be (Points : 5)

a. $6,000.
b. $10,100.
c. $7,000.
d. $7,700.

24. In the current year, Drew paid $6,500 for a piece of equipment to be used in his business. In addition, he had to pay a state sales tax of $500 on the purchase. How should Drew handle the sales tax? (Points : 5)

a. as an itemized deduction on Schedule A
b. as a tax expense deduction on Schedule C
c. Add the tax to the basis of the equipment.
d. Disregard sales tax as it is no longer deductible.

25. During the year Jason and Kristi, cash basis taxpayers, paid the following taxes:

State gift tax	$1,000
Property tax on home in the United States	4,100
State income tax (withholdings)	3,000
Estimated federal income tax	4,500
Estimated state income tax (paid by check)	800
Special assessment by city for sidewalks and street lighting on their street	2,000

What amount can Kristi and Jason claim as an itemized deduction for taxes on their federal income tax return in the current year? (Points : 5)

a. $7,900
b. $8,900
c. $10,900
d. $15,400

26. Which of the following is not generally classified as a passive activity? (Points : 5)

a. an activity in which the taxpayer does not materially participate
b. a limited partnership interest
c. rental real estate
d.a business in which the taxpayer owns an interest and works 1,000 hours a year

27. Amy, a single individual and sole shareholder of Brown Corporation, sold all of the Brown stock for $30,000. The stock basis was $150,000. Amy had owned the stock for 3 years. Brown Corporation meets the Section 1244 requirements. Amy has (Points : 5)

a $50,000 ordinary loss and $70,000 LTCL.
b $50,000 STCL and a $70,000 LTCL.
c $100,000 ordinary loss and a $20,000 LTCL.
d $100,000 LTCL and a $20,000 ordinary loss.

28. Joy reports the following income and loss:

Salary	$ 120,000
Income from activity A	60,000
Loss from activity B	( 35,000)
Loss from activity C	( 55,000)

Activities A, B, and C are all passive activities.
Based on this information, Joy has (Points : 5)

a. adjusted gross income of $90,000.
b. salary of $120,000 and net losses of $30,000.
c. salary of $120,000 and passive losses of $30,000 that will be carried over.
d. salary of $120,000, passive income of $60,000, and passive loss carryovers of $90,000.

29. Stacy, who is married and sole shareholder of ABC Corporation, sold all of her stock in the corporation for $100,000. Stacy had organized the corporation in 1999 by contributing $225,000 and receiving all of the capital stock of the corporation. ABC Corporation is a domestic corporation engaged in the manufacturing of ski parkas. The stock in ABC Corporation qualified as Sec. 1244 stock. The sale results in a (n) (Points : 5)

a. ordinary loss of $125,000.
b. long-term capital loss of $125,000.
c. long-term capital loss of $100,000 and ordinary loss of $25,000.
d. ordinary loss of $100,000 and long-term capital loss of $25,000.

30. Joseph has AGI of $170,000 before considering the $20,000 rental loss for property which he actively manages. How much of the rental loss can he deduct? (Points : 5)

a. $0
b. $10,000
c. $20,000
d. $25,000

31. Mr. and Mrs. West's adjusted gross income was $90,000. During the current year they incurred and paid the following:

Publications (unreimbursed and related to employment)	$2,000
Tax return preparation fee	1,000
Dues to professional organizations	1,500
Fees for will preparation (no tax advice)	800
Life insurance premiums	1,400

Assuming they can itemize deductions, how much should the West's claim as miscellaneous itemized deductions (after limitations have been applied)? (Points : 5)

a. $2,700
b. $4,500
c. $3,500
d. $5,300

32. Brett, an employee, makes the following gifts, none of which are reimbursed:

Brett's supervisor	$30
Brett's secretary	40
4 customers ($27 each)	108
Gift wrapping customer gifts	10

What amount of the gifts is deductible before application of the 2% of AGI floor for miscellaneous itemized deductions? (Points : 5)

a. $135
b. $150
c. $170
d. $180

33. Donald takes a new job and moves to a new residence. The distances are as follows:

Old residence to new job	70 miles
Old residence to old job	8 miles

By how many miles does the move exceed the minimum distance requirement for the moving expense deduction? (Points : 5)

a. 12 miles
b. 20 miles
c. 62 miles
d. none of the above

34. Vincent is a university professor who accepts a visiting position at another university for six months and obtains a leave of absence from his current employer. Vincent spends the following amounts at the new location:

Furnished apartment	$ 4,800
Meals	3,000

Vincent has AGI for the year of $50,000. Vincent's deductible travel expenses, after the 2% limitation, are (Points : 5)

a. $800.
b. $1,300.
c. $5,300.
d. $6,300.

35. Austin incurs $3,600 for business meals while traveling for his employer, Tex, Inc. Austin is reimbursed in full by Tex pursuant to an accountable plan. What amounts can Austin and Tex deduct? (Points : 5)

a.

Austin	Tex
$0	$1,800

b.

Austin	Tex
$0	$3,600

c.

Austin	Tex
$1,800	$1,800

d.

Austin	Tex
$3,600	$0

Expert: FiveStarLaw replied 283 days and 3 hours ago.

I will respond shortly

Customer replied 283 days and 3 hours ago.

ok thank you

Customer replied 283 days and 2 hours ago.

I have 45 min left.

Expert: FiveStarLaw replied 283 days and 2 hours ago.

Thank you

Here are the first 20 answers for comparison with your own to get you started – I will post the balance in about 15 min.:
1 Federal Insurance Contributions Act (FICA)
2 interest on corporate bonds.
3 unreimbursed employee business expenses
4 imposes a single tax upon transfers of property during an individual's life and at death
5 14,000
6Christmas bonus check
7$1,800
8 $750 income and $500 deduction
9$2,000 of the $16,000 payment is taxable each year.
10 $14,500.
11There is no taxable income
12 $30,000
13 $64,300.
14 52,600
15 $6,000
16 $25,000
17$6,000
18 $4,200
19 $14,000
20 $400,000

Customer replied 283 days and 2 hours ago.

good idea thanks

Expert: FiveStarLaw replied 283 days and 2 hours ago.

21Taxes allocated to Samuel

Taxes allocated to Edward

Effect on Samuel's Gain

$2,430

$1,220

increase gain by $2,430

22
23 $10,100
24 Add the tax to the basis of the equipment

Expert: FiveStarLaw replied 283 days and 2 hours ago.

please tell me how much time remains

26 .a business in which the taxpayer owns an interest and works 1,000 hours a year
27$50,000 ordinary loss and $70,000 LTCL
28
29 ordinary loss of $100,000 and long-term capital loss of $25,000.
30 $20,000
31$135

Customer replied 283 days and 2 hours ago.

15 MINUTES

Expert: FiveStarLaw replied 283 days and 2 hours ago.

33 12 miles

34Austin

Tex

$0

$3,600

I will go back to the questions I skipped

Customer replied 283 days and 2 hours ago.

5, 23, 28, 31, 34

is that austin 0

and tex 3600

the formatting is off so the numbers could be switched