ACC330_Exam2
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ACC330_Exam2

Course Number: ACC 330, Spring 2011

College/University: S. Alabama

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ACCOUNTING 330 - EXAM II - SPRING 2011 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Carin, a widow, elected to receive the proceeds of a $100,000 life insurance policy on the life of her deceased husband in 10 installments of $15,000 each. Her husband had paid premiums of $75,000 on the policy. In the first year, Carin collected $15,000 from the insurance...

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330 ACCOUNTING - EXAM II - SPRING 2011 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Carin, a widow, elected to receive the proceeds of a $100,000 life insurance policy on the life of her deceased husband in 10 installments of $15,000 each. Her husband had paid premiums of $75,000 on the policy. In the first year, Carin collected $15,000 from the insurance company. She must include in gross income: a. $0. b. $5,000. c. $10,000. d. $15,000. e. None of the above. 2. Turquoise Company purchased a life insurance policy on the companys chief executive officer, Joe. After the company had paid $400,000 in premiums, Joe died and the company collected the $1.5 million face amount of the policy. The company also purchased group term life insurance on all its employees. Joe had included $16,000 in gross income for the group term life insurance premiums. Joes widow, Rebecca, received the $100,000 proceeds from the group term life insurance policy. a. Rebecca can exclude the life insurance proceeds of $100,000, but Turquoise Company must include $1,100,000 ($1,500,000 $400,000) in gross income. b. Turquoise Company and Rebecca can exclude the life insurance proceeds of $1,500,000 and $100,000, respectively, from gross income. c. Turquoise Company can exclude $1,100,000 ($1,500,000 $400,000) from gross income, but Rebecca must include $84,000 in gross income. d. Turquoise Company must include $1,100,000 ($1,500,000 $400,000) in gross income and Rebecca must include $100,000 in gross income. e. None of the above. 3. Albert had a terminal illness which required almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of $100,000. Albert had paid $10,000 of premiums on the policy. The insurance company has offered to pay him $75,000 to cancel the policy, although its cash surrender value was only $60,000. Albert accepted the $75,000. Albert used $5,000 to pay his medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy: a. Albert is not required to recognize any gross income because of his terminal illness. b. Albert must recognize $65,000 ($75,000 $10,000) of gross income. c. Albert must recognize $10,000 ($75,000 $60,000 $5,000) of gross income. d. Albert must recognize $75,000 of gross income, but he has $5,000 of deductible medical expenses. e. None of the above. 4. A scholarship recipient at City University must include in gross income the scholarship proceeds used to pay for: a. Only tuition. b. Tuition, books, and supplies, but not meals and lodging. c. Books, supplies, meals, and lodging. d. Meals and lodging. e. None of the above. ____ ____ ____ ____ 5. Barney, a full-time graduate student, receives a full tuition waiver ($6,000 during the year) and a monthly stipend for 9 months of $600 ($5,400 for the year) from State University for performing research for the university as a graduate assistant. In addition, he receives a $1,500 research grant to pursue his own research and studies. Barneys gross income from the above is: a. $0. b. $5,400. c. $11,400. d. $12,900. e. None of the above. 6. As an executive of Cherry, Inc., Ollie receives a fringe benefit in the form of annual tuition scholarships of $10,000 to each of his three children. The scholarships are paid by the company directly to each childs educational institution and are payable only if the student maintains a B average. a. The tuition payments of $30,000 may be excluded from Ollies gross income as a scholarship. b. The tuition payments of $10,000 each must be included in the childs gross income. c. The tuition payments of $30,000 may be excluded from Ollies gross income because the payments are for the academic achievements of the children. d. The tuition payments of $30,000 must be included in Ollies gross income. e. None of the above. 7. In 2010, Khalid was in an automobile accident and suffered physical injuries. The accident was caused by Rashads negligence. Khalid threatened to file a lawsuit against Amber Trucking Company, Rashads employer, claiming $50,000 for pain and suffering, $25,000 for loss of income, and $100,000 in punitive damages. Ambers insurance company will not pay punitive damages; therefore, Amber has offered to settle the case for $120,000 for pain and suffering, $25,000 for loss of income, and nothing for punitive damages. Khalid is in the 35% marginal tax bracket. What is the after-tax difference to Khalid between Khalids original claim and Ambers offer? a. Ambers offer is $30,000 less. ( $100,000 punitive damages + $70,000 increased pain and suffering.) b. Ambers offer is $10,500 less. [($30,000 .35) = $10,500]. c. Ambers offer is $19,500 less. [$30,000(1 .35) = $19,500]. d. Ambers offer is $5,000 more. [$70,000 (1 .35)($100,000) = $65,000]. e. None of the above. 8. Jack received a court award for $100,000 for damages to his personal reputation by the National Gossip. He also received $50,000 in punitive damages. Jack must include in his gross income as a damage award: a. $0. b. $50,000. c. $100,000. d. $150,000. e. None of the above. 9. The exclusion for health insurance premiums paid by the employer applies to: a. Only current employees. b. Only current employees and their spouses and children. c. Only current and retired former employees. d. Present employees, retired former employees, and their spouses and children. e. None of the above. ____ ____ ____ ____ ____ 10. Julie was suffering from a viral infection that caused her to miss work for 90 days. During the first 30 days of her absence, she received her regular salary of $5,000 from her employer. For the next 60 days, she received $10,000 under an accident and health insurance policy that she had purchased for premium payments totaling $6,000. Of the $15,000 she received, Julie must include in gross income: a. $0. b. $4,000. c. $5,000 d. $9,000. e. None of the above. ____ 11. The plant union is negotiating with the Eagle Company, which is on the verge of bankruptcy. Eagle has offered to pay for the employees hospitalization insurance in exchange for a wage reduction. The employees each currently pay premiums of $4,000 a year for their insurance. a. If an employees wages are reduced by $5,000 and the employee is in the 28% marginal tax bracket, the employee would benefit from the offer. b. If an employees wages are reduced by $4,000 and the employee is in the 15% marginal tax bracket, the employee would benefit from the offer. c. If an employees wages are reduced by $6,000 and the employee is in the 35% marginal tax bracket, the employee would benefit from the offer. d. a., b., and c. e. None of the above. ____ 12. James, a cash basis taxpayer, received the following compensation and fringe benefits in 2010: Salary Disability income protection premiums Long-term care insurance premiums $66,000 3,000 4,000 His actual salary was $72,000. He received only $66,000 because his salary was garnished and the employer paid $6,000 on Jamess credit card debt he owed. The wage continuation insurance is available to all employees and pays the employee three-fourths of the regular salary if the employee is sick or disabled. The long-term care insurance is available to all employees and pays $150 per day towards a nursing home or similar facility. What is Jamess gross income from the above? a. $66,000. b. $72,000. c. $73,000. d. $75,000. e. None of the above. ____ 13. Adam repairs power lines for the Egret Utilities Company. He is generally working on a power line during the lunch hour. He must eat when and where he can and still get his work done. He usually purchases something at a convenience store and eats in his truck. Egret reimburses Adam for the cost of his meals. a. Adam must include the reimbursement in his gross income. b. Adam can exclude the reimbursement from his gross income since the meals are provided for the convenience of the employer. c. Adam can exclude the reimbursement from his gross income because he eats the meals on the employers business premises (the truck). d. Adam may exclude from his gross income the difference between what he paid for the meals and what it would have cost him to eat at home. e. None of the above. ____ 14. Tommy, a senior at State College, receives free room and board as full compensation for working as a resident advisor at the university dormitory. The regular housing contract is $1,800 a year in total, $1,000 for lodging and $800 for meals in the dormitory. Tommy had the option of receiving the meals or $800 in cash. Tommy accepted the meals. What is Tommys gross income from working as a resident advisor? a. $0, the entire value of the contract is excluded from gross income. b. $800, only the meal contract must be included in gross income. c. $1,000, only the lodging contract must be included in gross income. d. $1,800, the entire value of the contract is compensation. e. None of the above. ____ 15. Under the Swan Companys cafeteria plan, all full-time employees are allowed to select any combination of the benefits below, but the total received by the employee cannot exceed $8,000 a year. I. II. III. IV. Group medical and hospitalization insurance for the employee, $3,600 a year. Group medical and hospitalization insurance for the employees spouse and children, $1,200 a year. Child-care payments, actual cost but not more than $4,800 a year. Cash required to bring the total of benefits and cash to $8,000. Which of the following statements is true? a. Sam, a full-time employee, selects choices II and III and $2,000 cash. His gross income must include the $2,000. b. Paul, a full-time employee, elects to receive $8,000 cash because his wifes employer provided these same insurance benefits for him. Paul is required to include the $8,000 in gross income. c. Sue, a full-time employee, elects to receive choices I, II and $3,200 for III. Sue is not required to include any of the above in gross income. d. All of the above. e. None of the above. ____ 16. Heather is a full-time employee of the Drake Company and participates in the companys flexible spending plan that is available to all employees. Which of the following is correct? a. Heather reduced her salary by $1,200, actually spent $1,500, and received only $1,200 as reimbursement for her medical expenses. Heathers gross income will be reduced by $1,500. b. Heather reduced her salary by $1,200, and received only $900 as reimbursement for her actual medical expenses. She is not refunded the $300 remaining balance, but her gross income is reduced by $1,200. c. Heather reduced her salary by $1,200, and received only $800 as reimbursement for her medical expenses. She is not refunded the $400. Her gross income is reduced by $800. d. Heather reduced her salary by $1,200, and received only $900 as reimbursement for her medical expenses. She forfeits the $300. Her gross income is reduced by $300. e. None of the above. ____ 17. Evaluate the following statements: I. II. a. b. c. d. e. De minimis fringe benefits are those that are so immaterial that accounting for them is impractical. De minimis fringe benefits are not subject to strict anti-discrimination requirements. I and II are true. I is true, but II is false. I and II are false. I is false, but II is true. None of the above. ____ 18. In the case of a fringe benefit plan that is discriminatory (e.g., the plan favors officers over other employees), a. All employees must include all benefits received in gross income. b. De minimis fringes may be excluded from gross income. c. The value of a parking space provided (value of $100 per month) must be included in gross income. d. Those who are being discriminated against can exclude a certain portion of their cash compensation from gross income to achieve parity. e. None of the above. ____ 19. Doug and Pattie received the following interest income in the current year: Savings account at Greenbacks Bank United States Treasury bonds Interest on State of Virginia bonds Interest on Federal tax refund Interest on state income tax refund $4,000 250 200 150 75 Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100) for opening the savings account. What amount of interest income should they report on their joint income tax return? a. $4,775. b. $4,675. c. $4,575. d. $4,300. e. None of the above. ____ 20. Martha participated in a qualified tuition program for the benefit of her son. She invested $5,000 in the fund. Four years later her son withdrew $7,500, the entire balance in the program, to pay his college tuition. a. Martha must include the $2,500 ($7,500 $5,000) in her gross income when the funds are used to pay the tuition. b. Martha must include the portion of the $2,500 accumulated each year in her gross income (i.e., interest). c. Marthas son must include the $2,500 ($7,500 $5,000) in his gross income when the funds are used to pay the tuition. d. Marthas son must include the portion of the $2,500 accumulated each year in his gross income (i.e., interest). e. None of the above. ____ 21. Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8% note for $100,000. The note was to be paid over a five-year period. When the balance on the note was $80,000, Jewel began having financial difficulties. To accelerate her cash inflows, Jewel agreed to accept $60,000 cash from Harold in final payment of the note principal. a. Harold must recognize $20,000 ($80,000 $60,000) of gross income. b. Harold is not required to recognize gross income, but must reduce his cost basis in the land to $130,000. c. Harold is not required to recognize gross income, since he paid the debt before it was due. d. Jewel must recognize gross income of $20,000 ($80,000 $60,000) from discharge of the debt. e. None of the above. ____ 22. Janice is single, had gross income of $38,000, and incurred the following expenses: Charitable contribution Taxes and interest on home Legal fees incurred in a tax dispute Medical expenses Penalty on early withdrawal of savings Her AGI is: a. $21,300. b. $28,800. c. $32,800. d. $35,500. e. $37,800. ____ 23. Which of the following expenses is classified as a deduction for AGI? a. Alimony. b. Reimbursed employee business expense. c. Safe deposit box rental fee in which investment securities are stored. d. Only a. and b. e. a., b., and c. ____ 24. Which of the following is correct? a. A personal casualty loss is classified as a deduction from AGI. b. Real estate taxes on a taxpayers personal residence are classified as deductions from AGI. c. An expense associated with rental property is classified as a deduction from AGI. d. Only a. and b. are correct. e. a., b., and c., are correct. ____ 25. Which of the following is not a trade or business expense? a. Interest on business indebtedness. b. Property taxes on business property. c. Parking ticket paid on business auto. d. Depreciation on business property. e. All of the above are trade or business expenses. $2,500 9,000 1,000 4,000 200 ____ 26. Which of the following cannot be deducted as a 162 business expense? a. Expenses of investing in stocks and bonds. b. Charitable contributions made by a sole proprietorship. c. Fines and penalties. d. Only a. and c. cannot. e. a., b., and c. cannot. ____ 27. Agnes is the sole shareholder of Violet, Inc. For 2010, she receives from Violet a salary of $200,000 and dividends of $100,000. Violets taxable income for 2010 is $500,000. On audit, the IRS treats $50,000 of Agness salary as unreasonable. Which of the following statements is correct? a. Agness gross income will increase by $50,000 as a result of the IRS adjustment. b. Violets taxable income will not be affected by the IRS adjustment. c. Agness gross income will decrease by $50,000 as a result of the IRS adjustment. d. Violets taxable income will increase by $50,000 as a result of the IRS adjustment. e. None of the above is correct. ____ 28. Which of the following is incorrect? a. All salaries of a business are deductible. b. To be deductible, a business expense must be both ordinary and necessary. c. The income and expenses of a business are reported on Schedule C. d. The purchase of a building must be capitalized. e. All of the above are incorrect. ____ 29. Benita incurred a business expense on December 10, 2010, which she charged on her bank credit card. She paid the credit card statement which included the charge on January 5, 2011. Which of the following is correct? a. If Benita is a cash method taxpayer, she cannot deduct the expense until 2011. b. If Benita is an accrual method taxpayer, she can deduct the expense in 2010. c. If Benita uses the accrual method, she can choose to deduct the expense in either 2010 or 2011. d. Only b. and c. are correct. e. a., b., and c. are correct. ____ 30. Payments by a cash basis of taxpayer capital expenditures: a. Must be expensed at the time of payment. b. Must be expensed by the end of the first year after the asset is acquired. c. Must be deducted over the actual or statutory life of the asset. d. Can be deducted in the year the taxpayer chooses. e. None of the above. ____ 31. Which of the following is deductible as a trade or business expense? a. A city coroner contributes to the mayors reelection campaign fund. b. Illegal bribes and kickbacks. c. Two-thirds of treble damage payments. d. Fines and penalties. e. None of the above. ____ 32. Terry and Jim are both involved in operating illegal businesses. Terry operates a gambling business and Jim operates a drug running business. Both businesses have gross revenues of $500,000. The businesses incur the following expenses. Employee salaries Bribes to police Rent and utilities Cost of goods sold Terry $200,000 25,000 50,000 0 Jim $200,000 25,000 50,000 125,000 Which of the following statements is correct? a. Neither Terry nor Jim can deduct any of the above items in calculating the business profit. b. Terry should report profit from his business of $250,000. c. Jim should report profit from his business of $500,000. d. Jim should report profit from his business of $250,000. e. None of the above. ____ 33. Vera is the CEO of Brunettes, a publicly held corporation. For the year, she receives a salary of $950,000, a bonus of $600,000, and contributions to her retirement plan of $35,000. The bonus was awarded at the December board meeting based on Veras threat to accept a better paying job with a competitor. What amount may Brunettes deduct? a. $950,000. b. $985,000. c. $1,550,000. d. $1,585,000. e. None of the above. ____ 34. Tommy, an automobile mechanic employed by an auto dealership, is considering opening a fast food franchise. If Tommy decides not to acquire the fast food franchise, any investigation expenses are: a. A deduction for AGI. b. A deduction from AGI, subject to the 2 percent floor. c. A deduction from AGI, not subject to the 2 percent floor. d. Deductible up to $5,000 in the current year with the balance being amortized over a 180month period. e. Not deductible. ____ 35. For an activity classified as a hobby, the expenses are categorized as follows: (1) (2) (3) Amounts deductible under other Code sections without regard to the nature of the activity, such as property taxes and home mortgage interest. Amounts that affect adjusted basis and would be deductible under other Code sections if the activity had been engaged in for profit (e.g., depreciation, amortization, and depletion). Amounts deductible under other Code sections if the activity had been engaged in for profit, but only if those amounts do not affect adjusted basis (e.g., maintenance, utilities, and supplies). If these expenses exceed the gross income from the activity and are thus limited, the sequence in which they are deductible is: a. (1), (2), (3). b. (1), (3), (2). c. (2), (3), (1). d. (2), (1), (3). e. (3), (2), (1). ____ 36. Priscella pursued a hobby of making bedspreads in her spare time. Her AGI before considering the hobby is $40,000. During the year she sold the bedspreads for $10,000. She incurred expenses as follows: Supplies Interest on loan to get business started Advertising $4,000 500 6,500 Assuming that the activity is deemed a hobby, how should she report these items on her tax return? a. Include $10,000 in income and deduct $11,000 for AGI. b. Ignore both income and expenses since hobby losses are disallowed. c. Include $10,000 in income, deduct nothing for AGI, and claim $10,000 of the expenses as itemized deductions. d. Include $10,000 in income and deduct interest of $500 for AGI. e. None of the above. ____ 37. Which of the following statements is correct? a. If a personal residence is rented for fewer than 15 days, the rent income is not included in gross income and no expenses can be deducted. b. If a personal residence is rented for more than 14 days, the rent income must be included in gross income and all the related expenses can be deducted. c. If a personal residence is rented for more than 14 days and the personal use days exceed 14 days and 10% of the rental days, the rent income must be included in gross income, but the expense deductions are limited to the amount of gross income. d. Only a. and b. e. Only a. and c. ____ 38. If a vacation home is determined to be a personal/rental use residence, which of the following statements is correct? a. All rental income is included in gross income. b. All rental related expenses are a deduction from gross income. c. Expenses must be allocated between rental and personal use. d. Only a. and c. are correct. e. a., b., and c. are correct. ____ 39. Bob and April own a house at the beach. The house was rented to unrelated parties for 8 weeks during the year. April and the children used the house 12 days for their vacation during the year. After properly dividing the expenses between rental and personal use, it was determined that a loss was incurred as follows: Gross rental income Less: Mortgage interest and property taxes Other allocated expenses Net rental loss $4,000 $3,500 2,000 (5,500) ($1,500) What is the correct treatment of the rental income and expenses on Bob and Aprils joint income tax return for the current year assuming the IRS approach is used if applicable? a. A $1,500 loss should be reported. b. Only the mortgage interest and property taxes should be deducted. c. Since the house was used more than 10 days personally by Bob and April, the rental expenses (other than mortgage interest and property taxes) are limited to the gross rental income in excess of deductions for interest and taxes allocated to the rental use. d. Since the house was used less than 50% personally by Bob and April, all expenses allocated to personal use may be deducted. e. Bob and April should include none of the income or expenses related to the beach house in their current year income tax return. ____ 40. Sarah incurred the following expenses for her dependent son during the current year: Payment of principal on sons automobile loan Interest on above loan Payment of sons property taxes Payment of principal on sons personal residence loan Payment of interest on sons personal residence loan How much may Sarah deduct in computing her itemized deductions? a. $0. b. $9,200. c. $11,200. d. $17,700. e. None of the above. ____ 41. On January 2, 2010, Fran acquires a business from Chuck. Among the assets purchased are the following intangibles: patent with a 9-year remaining life, a covenant not to compete for 12 years, and goodwill. Of the purchase price, $150,000 was paid for the patent and $48,000 for the covenant. The amount of the excess of the purchase price over the identifiable assets was $87,000. What is the amount of the amortization deduction for 2010? a. $13,200. b. $15,800. c. $19,000. d. $26,467. e. None of the above. $5,000 2,000 1,200 1,500 8,000 ____ 42. In January, Lance sold stock with a cost basis of $26,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions? a. Disallowed loss to James of $2,000; gain to Lance of $1,000. b. Disallowed loss to Lance of $2,000; gain to James of $3,000. c. Deductible loss to Lance of $2,000; gain to James of $3,000. d. Disallowed loss to Lance of $2,000; gain to James of $1,000. e. None of the above. ____ 43. Nikeya sells land (adjusted basis of $60,000) to her adult son, Shamed, for its appraised value of $50,000. Which of the following statements is correct? a. Nikeyas recognized loss is $10,000 ($50,000 amount realized $60,000 adjusted basis). b. Shameds adjusted basis for the land is $60,000 ($50,000 cost + $10,000 disallowed loss for Nikeya). c. If Shamed subsequently sells the land for $58,000, he has no recognized gain or loss. d. Only a. and b. are correct. e. a., b., and c. are correct. ____ 44. Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account receivable for $25,000. This year, the account was settled for $18,000. How much loss can Peggy deduct and in which year? a. $5,000 for the current year. b. $5,000 for the prior year and $7,000 for the current year. c. $7,000 for the current year. d. $12,000 for the current year. e. None of the above. ____ 45. Two years ago, Gina loaned Tom $50,000. Tom signed a note the terms of which called for monthly payments of $2,000 plus 6% interest on the outstanding balance. Last year, when the balance owing on the loan was $18,000, Tom defaulted on the note. As of the end of last year, there appeared to be no reasonable prospect of Gina recovering the $18,000. As a consequence, Gina claimed the $18,000 as a nonbusiness bad debt. Last year, Gina had AGI of $60,000 which included $5,000 net long-term capital gains and $4,000 of qualified dividends. Gina did not itemize her deductions. During the current year, Tom paid Gina $13,000 in final settlement of the loan. How should Gina account for the payment in the current year? a. File an amended tax return for last year. b. Report no income for the current year. c. Report $8,000 of income for the current year. d. Report $12,000 of income for the current year. e. Report $13,000 of income for the current year. ____ 46. Three years ago, Sharon loaned her sister $30,000 to buy a car. A note was issued for the loan with the provision for monthly payments of principal and interest. Last year, Sharon purchased a car from the same dealer, Hanks Auto. As partial payment for the car, the dealer accepted the note from Sharons sister. At the time Sharon purchased the car, the note had a balance of $18,000. During the current year, Sharons sister died. Hanks Auto was notified that no further payments on the note would be received. At the time of the notification, the note had a balance due of $15,500. What is the amount of loss, with respect to the note, that Hanks Auto may claim on the current year tax return? a. $0. b. $3,000. c. $15,500. d. $18,000. e. None of the above. ____ 47. On September 3, 2009, Able purchased 1244 stock in Red Corporation for $6,000. On December 31, 2009, the stock was worth $8,500. On August 15, 2010, Able was notified that the stock was worthless. How should Able report this item on his 2009 and 2010 tax returns? a. 2009$0; 2010$6,000 ordinary loss. b. 2009$0; 2010$6,000 long-term capital loss. c. 2009$2,500 short-term capital loss; 2010$8,500 short-term capital loss. d. 2009$2,500 short-term capital gain; 2010$3,800 ordinary loss. e. None of the above. ____ 48. On February 20, 2009, Bill purchased stock in Pink Corporation (the stock is not small business stock) for $1,000. On May 1, 2010, the stock became worthless. During 2010, Bill also had an $8,000 loss on 1244 small business stock purchased two years ago, a $9,000 loss on a nonbusiness bad debt, and a $5,000 longterm capital gain. How should Bill treat these items on his 2010 tax return? a. $4,000 long-term capital loss and $9,000 short-term capital loss. b. $4,000 long-term capital loss and $3,000 short-term capital loss. c. $8,000 ordinary loss and $3,000 short-term capital loss. d. $8,000 ordinary loss and $5,000 short-term capital loss. e. $8,000 long-term capital loss and $6,000 short-term capital loss. ____ 49. John files a return as a single taxpayer. In 2010, he had the following items: Salary of $40,000. Loss of $65,000 on the sale of 1244 stock acquired two years ago. Interest income of $8,000. Determine Johns AGI for 2010. a. ($5,000). b. $0. c. $45,000. d. $48,000. e. None of the above. ____ 50. Bruce, who is single, had the following items for the current year: Salary of $90,000. Gain of $30,000 on the sale of 1244 stock acquired two years earlier. Loss of $75,000 on the sale of 1244 stock acquired three years earlier. Worthless stock of $7,000. The stock was acquired on February 1 of the prior year and became worthless on January 15 of the current year. Determine Bruces AGI for the current year. a. $37,000. b. $38,000. c. $42,000. d. $47,000. e. None of the above. ____ 51. On July 20, 2008, Matt (who files a joint return) purchased 3,000 shares of Orange Corporation stock (the stock is 1244 small business stock) for $24,000. On November 10, 2009, Matt purchased an additional 1,000 shares of Orange Corporation stock for $150,000. On September 15, 2010, Matt sold the 4,000 shares of stock for $80,000. How should Matt treat the sale of the stock on his 2010 return? a. $94,000 ordinary loss. b. $100,000 ordinary loss; $6,000 net capital gain. c. $100,000 ordinary loss; $30,000 STCL. d. $130,000 ordinary loss; $36,000 LTCG. e. None of the above. ____ 52. In 2010, Wally had the following insured personal casualty losses (arising from one casualty). Wally also had $48,000 AGI for the year. Asset A B C Adjusted Basis $9,200 3,000 3,700 Fair Market Value Before After $8,000 $1,000 4,000 0 1,900 0 Insurance Recovery $2,000 500 800 Wallys casualty loss deduction is: a. $4,100. b. $4,500. c. $8,600. d. $9,500. e. None of the above. ____ 53. Jim had a car accident in 2010 in which his car was completely destroyed. At the time of the accident, the car had a fair market value of $30,000 and an adjusted basis of $40,000. Jim used the car 100% of the time for personal use. Jim received an insurance recovery of 80% of the value of the car at the time of the accident. If Jims AGI for the year is $50,000, determine his deductible loss on the car. a. $900. b. $6,000. c. $10,500. d. $30,000. e. None of the above. ____ 54. In 2010, Grants personal residence was damaged by fire. Grant was insured for 90% of his actual loss, and he received the insurance settlement. Grant had adjusted gross income, before considering the casualty item, of $30,000. Pertinent data with respect to the residence follows: Cost basis Value before casualty Value after casualty What is Grants allowable casualty loss deduction? a. $0. b. $6,500. c. $6,900. d. $10,000. e. $80,000. $170,000 250,000 150,000 ____ 55. John had adjusted gross income of $60,000. During the year his personal use summer home was damaged by a fire. Pertinent data with respect to the home follows: Cost basis Value before the fire Value after the fire Insurance recovery $250,000 400,000 100,000 270,000 John had an accident with his personal use car. As a result of the accident, John was cited with reckless driving and willful negligence. Pertinent data with respect to the car follows: Cost basis Value before the accident Value after the accident Insurance recovery What is Johns deductible casualty loss? a. $0. b. $15,800. c. $15,900. d. $35,900. e. None of the above. ____ 56. In 2010, Theo had a salary of $30,000 and experienced the following losses: Loss from damage to rental property Loss from theft of securities Personal casualty gain Personal casualty loss (after $100 floor) Determine the amount of Theos itemized deduction from these losses. a. $0. b. $2,800. c. $2,900. d. $4,580. e. None of the above. ____ 57. Alicia was involved in an automobile accident in 2010. Her car was used 50% for business and 50% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If Alicias AGI is $50,000 (before considering the loss), determine her itemized deduction for the casualty loss. a. $2,100. b. $5,700. c. $6,100. d. $16,500. e. None of the above. ($10,000) (5,000) 4,000 (3,000) $80,000 6,000 20,000 0 ____ 58. Alma is in the business of dairy farming. During the year, one of her barns was completely destroyed by fire. The adjusted basis of the barn was $90,000. The fair market value of the barn before the fire was $75,000. The barn was insured for 95% of its fair market value, and Alma recovered this amount under the insurance policy. Alma has adjusted gross income for the year of $40,000 (before considering the casualty). Determine the amount of loss she can deduct on her tax return for the current year. a. $3,750. b. $14,650. c. $14,750. d. $18,750. e. None of the above. ____ 59. Wu, who is single, has the following items for 2010: Salary Interest income Itemized deductions ($27,000 attributable to casualty loss) What is Wus NOL for 2010? a. $0. b. $1,000. c. $2,000. d. $25,000. e. None of the above. ____ 60. Mavis, age 70, is single with no dependents. The following information was obtained from her personal records for the current year: Interest income Loss on sale of 1244 stock Itemized deductions Based on the above information, what is Maviss net operating loss for the current year? a. $18,000. b. $19,800. c. $20,000. d. $23,300. e. None of the above. $ 7,000 20,000 4,000 $25,000 6,000 (32,000)

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S. Alabama - ACC - 330
ACCOUNTING 330 - EXAM III - PART I - SPRING 2011Multiple Choice Identify the choice that best completes the statement or answers the question. _ 1. Grape Corporation purchased a machine in December of the current year. This was the only asset purchased d
S. Alabama - MIS - 300
MIS300 Study Guide Chapter One-MIS stands for Management Information Systems: The development and use of information systems that help businesses achieve their goals and objectives.-System: A group of components that interact to achieve some purpose-In
S. Alabama - MIS - 300
MIS300 Study Guide Chapter One-_: The development and use of information systems that help businesses achieve their goals and objectives.-_: A group of components that interact to achieve some purpose-_: A group of components that interact to produce i
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Two-Collaboration: Occurs when two or more people work together to achieve a common goal, result, or work product. Works better than individuals working alone when it is effective. It involves coordination, communication, feedb
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Two-Communication: Has 2 key elements: 1.) 2.)-_: Allows certain people the ability to do specified tasks on a program (Some users can edit, some users can delete, some users can only read the document, etc.)-_: One group mem
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Three-An organizations goals and objectives are determined by its competitive strategy. -Competitive Strategy: Determines the structure, features, and functions of every information system. The strategy determines value chains,
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Three-An organizations goals and objectives are determined by its _. -_: Determines the structure, features, and functions of every information system. The strategy determines value chains, which in turn determine business proc
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Four-Hardware: Consists of electronic components and related gadgetry that input, process, output, and store data according to instructions encoded in computer programs and software-Input Hardware: Keyboard, mouse, document sc
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Four-Computers represent data using _, called _. It is either a _ or a _. They are used for computer data because they are easy to represent physically. Regardless of whether computer data are numbers, alphabetical letters, or
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Five-Spreadsheets: Good for tracking items with just one theme.-Database: A self-describing collection of integrated records; good for tracking items with more than one theme.-Bytes: Characters of data, are grouped into colum
S. Alabama - MIS - 300
MIS300 Study Guide Chapter Five-_: Good for tracking items with just one theme.-_: A self-describing collection of integrated records; good for tracking items with more than one theme.-_: Characters of data, are grouped into columns (also called _)-_:
Johns Hopkins - AAS - 410.302.81
Topic #2: Arrange the following in order of decreasing reactivity to nucleophilic acyl substitution: ester, amide, acid anhydride. Explain your logic. You should include: 1) The order in decreasing reactivity 2) Discussion of these factors as they pertain
Johns Hopkins - AAS - 410.302.81
Topic #1: Explain the concept of hybridization as if you were explaining it for the first time to a person with a limited science background (i.e, a 10 year old child). For the sake of focus, I will limit my discussion to sp3 hybridization. To begin, let'
Johns Hopkins - AAS - 410.302.81
Propose an detailed explanation of the role strain plays on stability and reactivity of a cyclic alkane such as cyclopropane. This discussion is guided primarily by our course textbook, Organic Chemistry with Biological Applications. According to the chap
Johns Hopkins - AAS - 410.302.81
Explain the equitorial and axial orientation of the substituents in the more stable forms of the cis and trans isomers of 1-isobutyl-2methylcyclohexane. Be sure to discuss strain and energy in relation to conformationsBefore responding to this discussion
Johns Hopkins - AAS - 410.302.81
DescribethefactorsthatleadtoMarkovnikov'sRuleChooseareactionexample thatfollowsMarkovnikovsRule,describethereactionandhighlightthefactorsAccording to page 231 of our textbook, O rganic Chemistry with Biological A pplications, Markovnikovs Rule states tha
Johns Hopkins - AAS - 410.302.81
Proposeanddescribeseveralfactorsthatcanaccountforthestabilitydifference betweencyclohexaneandbenzene.To answer this question, lets first look at the factors that account for the s tability of these molecules individually, and then we can synthesize this
Johns Hopkins - AAS - 410.302.81
1) Define " reaction mechanism." In responding to this, and subsequent, discussion topics, I will primarily be d rawing from material discussed in O rganic Chemistry 6th E dition , authored by Fessenden and Fessenden. Although I think our textbook is one
Johns Hopkins - AAS - 410.302.81
2) Define "nucleophile." What electronic features characterize a nucleophile? According to Fessenden and Fessenden (in Organic Chemistry 6th Edition), nucleophile literally translates to nucleus lover. Nucleophiles are molecules that are attracted to posi
Johns Hopkins - AAS - 410.302.81
3) Define "electrophile." What electronic features characterize an electrophile? The following include definitions given by Fessenden and Fessenden in O rganic Chemistry 6th E dition. E lectrophiles are the opposite of n ucleophiles. They are electron-lov
Johns Hopkins - AAS - 410.302.81
4)Whatisthedifferencebetweenexergonicandexothermic?Whatisthe differencebetweenintermediateandtransitionstate?Whatistherelation betweenactivationenergyandtherateofareaction? Exergonicvs.ExothermicReactions Inordertohavefavorablechemicalreactions,inwhichthe
Johns Hopkins - AAS - 410.302.81
Topic # 1 Carvone exists as a pair of enantiomers (see structure p 23). (R)-(-)-carvone smells like spearment, whereas (S)-(+)-carvone smells like caraway. Why do t hese enantiomers have different smells (i.e., different biological activity). In our textb
Johns Hopkins - AAS - 410.302.81
Topic # 2 I magine that you r un a factory that manufactu res Ibuprofen, an a nalgesic and anti inflammatory found in many over-the-counter d rugs such as Mot rin. See page 166 of your textbook for the structure o f Ibuprofen. Pa r t (a) How many stereoce
Johns Hopkins - AAS - 410.302.81
Topic#3 Whymustenantiomersbeconvertedtodiastereomersbeforeseparation processessuchascrystallization? With separation processes such as crystallization, chemists often are taking advantage of the different physical properties of chemicals in order to separ
Johns Hopkins - AAS - 410.302.81
Topic#1:ListthethreerequirementsforasubstitutionreactiontoproceedviatheSN1mechanism.In order for us to assess which three requirements are needed for a substitution reaction to proceed via the SN1 mechanism, lets first briefly review what the SN1 reactio
Johns Hopkins - AAS - 410.302.81
Topic#2:WhatstructuralandreactivityfactorsarenecessaryforanE2reaction tooccur? As I had done in my previous topic response, I will first provide an overview of what an E2 reaction entails before discussing the relevant reactivity factors needed for an E2
Johns Hopkins - AAS - 410.302.81
Topic#3:WhatstructuralandreactivityfactorsarenecessaryforE1reactionstooccur?According to our textbook, Organic Chemistry with Biological Applications, the requirements for E1 reactions are the same as for SN1 reactions. Moreover, the reaction proceeds in
Johns Hopkins - AAS - 410.302.81
How do you think the pKa of the following alcohol would compare to the pKa of 1hexanol, why? (see attached image)The pKa of the hexa-1,3-dien-1-ol will be smaller than that of 1-hexanol. Why is this so? First, lets consider what exactly the pKa value of
Johns Hopkins - AAS - 410.302.81
Proposeareason(s)fortertiaryalcoholsbeingunreactivewithmostoxidizingagentAccording to our textbook, when molecules undergo oxidation reactions, these will closely resemble the mechanisms as demonstrated in E2 reactions. Therefore, lets review what occurs
Johns Hopkins - AAS - 410.302.81
Topic#1:Explainwhythecarbonylgroupcanfunctionasbothanucleophileandelectrophile.According to David Klein in O rganic Chemistry as a Second Language I I , t here are two factors that explain the electronics behind the carbonyl group. T hey are: 1.) Inducti
Johns Hopkins - AAS - 410.302.81
Topic#2:Arrangethefollowinginorderofdecreasingreactivitytonucleophilicaddition:ketone, aldehyde.Explainyourlogic.Relative Reactivity: 1.) Aldehyde (highest) 2.) Ketone (lowest) First, lets review the structure of these two molecules. As we can see, the g
Johns Hopkins - AAS - 410.302.81
Topic#3:Whyarethereactionsofaldehydesandiminesverysimilar?Beveryspecific.First, recall that aldehydes are carbonyl molecules, but have an RCHO s tructure. There is only one alkyl group bonded to the carbon of the carbonyl g roup. Meanwhile, ketones are c
Johns Hopkins - AAS - 410.302.81
Topic #1: List and explain the four most important factors that control the relative reactivity of a carbonylcontaining functional group in an addition or substitution reaction. The four most important factors that control the relative reactivity of a car
Johns Hopkins - AAS - 410.303.81
(1). How are nucleosomes disassembled to allow transcription and then reassembled? According to our textbook, Life: The Science of Biology, one way to regulate the expression of genes is through changing the chromatin structure. Recall that nuclear protei
Johns Hopkins - AAS - 410.303.81
As a public health researcher, I find this topic to be particularly interesting. Before addressing the specific theories that underlie the association between soft drinks and osteoporosis and tooth decay, I thought it would be worthwhile to first discuss
Johns Hopkins - AAS - 410.303.81
(6). Please do literature research to investigate the roles of the following elements in living things: Na, Mg, K, Ca, Fe, Cu, and Zn. You can just pick up one element and discuss its role in living things and the possible deleterious effects if too much
Johns Hopkins - AAS - 410.303.81
(5). Please discuss the structure and function of vitamin D, and give an example to describe the consequences of vitamin D deficiency. Vitamin D3, which is also known as cholecalciferol results when 7-hydrocholesterol (or cholesterol that actually has an
Johns Hopkins - AAS - 410.303.81
(1). Please discuss how proteins can fold rapidly and reliably to their native conformation and how misfolded proteins can lead to diseases. I would like to note that this discussion is guided largely by information provided in our textbook, Life: The Sci
Johns Hopkins - AAS - 410.303.81
1.) Please discuss the structure and biological function of lysosomes in cells and the consequences caused by their malfunctioning. According to the Life: The Science of Biology textbook, Lysosomes are responsible for the intracellular digestion of macrom
Johns Hopkins - AAS - 410.303.81
The content for this discussion response is guided by content discussed in our textbook, Life: The Science of Biology, as well as the textbook Molecular Biology of The Cell 5th Edition (Alberts, Johnson, Lewis, Raff, Roberts & Walter, 2008). Overview In t
Johns Hopkins - AAS - 410.303.81
(2).Areallbiologicalmembranesidentical?Pleasegiveanexampletoexplain youranswer.IbasethisdiscussionheavilyonthecontentdiscussedinChapter10: MembraneStructureofTheMolecularBiologyofTheCell5 Edition(Albertsthetal.,2008).Thisdiscussionfocusesprimarilyonce
Johns Hopkins - AAS - 410.303.81
(1). What affects the fluidity of biological membranes? How do hibernating animals cope with cold temperature? This discussion will be guided primarily by the course textbook, Life: The Science of Biology. Similar to my earlier discussion on what makes me
Johns Hopkins - AAS - 410.303.81
(1).Mostvitaminsarecoenzymesorprecursorsto coenzymes.Pleasedoliteratureresearchandgivean exampletoexplainhowthevitaminaffectstheactivityofthe enzyme.Towards the end of chapter 6 in our course textbook, Life: The Science of Biology, we learned that in ord
Johns Hopkins - AAS - 410.303.81
(3). Amylase is a digestive enzyme that breaks down starch and is secreted in the mouth of humans. Amylase functions well in the mouth but ceases to function once it hits the acidic stomach environment. Explain why amylase does not function in the stomach
Johns Hopkins - AAS - 410.303.81
(1). What are the structures and functions of eukaryotic chromosomes? How many chromosomes do human cells have? According to our textbook, L ife: The Science of Biology, eukaryotic chromosomes are highly complex structures. Many of i ts features essential
Johns Hopkins - AAS - 410.303.81
(2).Whataretheeukaryoticcellcycleeventsthatoccurduring interphaseandmitosis?The content for this discussion will be guided primarily by our textbook, Life: The Science of Biology. According to our textbook, the cell cycle includes those events that will
Johns Hopkins - AAS - 410.303.81
(1). Please give an example to discuss the X-linked human phenotypes. Chapter 10 of our textbook, Life: The Science of Biology, covered x-linked human phenotypes extensively. I will start this discussion by more broadly describing the inheritance of sex c
Johns Hopkins - AAS - 410.303.81
(2). There are a variety of abnormalities in the numbers of sex chromosomes due to nondisjunction during gametogenesis. Please discuss the signs and problems conditions such as Klinefelter and Turner syndromes. The primary source of this discussion respon
Johns Hopkins - AAS - 410.303.81
(2). Please discuss how transcription occurs in three steps According to our textbook, Life: The Science of Biology, the central dogma states that DNA forms RNA via Transcription, which then form amino acid chains (polypeptides) via Translation. In Transc
Johns Hopkins - AAS - 410.303.81
(3). Please give an example to discuss how the post-translational modification of proteins occurs and how it affects protein structure and function. To begin this discussion, lets first talk about the processes that occur during or immediately following p
Harold Washington College - CCC - EE - 101
/ * / Item.java / / Represents an item in a shopping cart. / / * i import java.text.NumberFormat; public class Item cfw_ private String name; private double price; private int quantity; / -/ Create a new item with the given attributes. / -public Item (Str
Cleveland State - MKT - 600
I. Factual Summary Fenix del Sur, LLC, a leading artifact business company that sources and sells South American and African artifacts, started as an operating post near Tucson, is considered to be wellknown since the early 1900's in the jewelry and potte
Delta MI - MARKETING - 111
Chapter 8 NotesMarket Segmentation: A market is (1) people or organizations with (2) needs or wants and with (3) the ability and (4) willingness to buy. Market segment is a subgroup of people or organizations sharing one or more characteristic that cause
Iowa Central Community College - ECON - 101
Vernon MascarenhasStudent ID:964369406 Professor: Ahmet Dursun Course: English 101C Date: 09-16-2010The Belly Rules the MindFrom the time we are on this planet till the end,we are continuously learning what is right from wrong ,What is civilized and un
North Park - ETHICS - 101
Business Ethics in the News Article 3 Allison Ensz St. Francis school flex-plan worker charged in $120,000 theft Rachel Heinen, a human resources worker for the St. Francis School board was caught for embezzling over $120,000 over a two year period from a
North Park - ETHICS - 101
Allison Ensz Article 1 Business Ethics in the News The article I wrote about is about the CEO of North Memorial Hospital being busted in a prostitution sting. The reason this is a business ethics article is because he has recently done at least 3 commerci
North Park - ETHICS - 101
Allison Ensz September 9, 2010 Business Ethics in the News This article describes how many American energy manufacturing companies are shutting down their businesses based in the United States and are moving to China. They are doing this because the Chine
North Park - ETHICS - 101
BP stations consider other brandsBy Harry R. Weber Associated Press Writer October 14, 2010 1:01 PM NEW ORLEANS (AP) Oil has stopped spewing into the Gulf of Mexico, but BP remains unusually vulnerable to the prospect of U.S. gas stations defecting to ot
North Park - ETHICS - 101
CompanyAccusedofFiringOverFacebookPostBy STEVEN GREENHOUSE Published: November 8, 2010Inwhatlaborofficialsandlawyersviewasagroundbreakingcaseinvolvingworkers andsocialmedia,theNationalLaborRelationsBoardhasaccusedacompanyof illegallyfiringanemployeeafte
North Park - ETHICS - 101
Allison Ensz - Business Ethics in the News Article What happened in this article is Johnson and Johnson admitted to misleading regulators and consumers by using paid contractors to buy faulty Motrin painkiller products from store shelves rather than annou
North Park - ETHICS - 101
Johnson & Johnson, Under Investigation, Tops CSR IndexPosted by admin2 October 13, 2010 Printer-friendly by Michael Connor In a demonstration of how perception can sometimes trump reality, Johnson & Johnson topped a list of companies perceived by America