TAX_T1_Sol11.pdf - 50. Award: 10.00 points Adjusted taxable...

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50.Award: 10.00 pointsAdjusted taxable income is defined as follows for purposes of the business interest limitation:taxable income allocable to the business computed without regard to interest income, anddepreciation, amortization, or depletion, interest expense, and net operating lossdeductions.30 percent of revenue after deducting depreciation and interest expense.Taxable income allocable to debt invested in the business.Interest income after deducting 30 percent of all deductible expenses.None of the choices are correct.
Definition applying beginning in 2018ReferencesMultiple ChoiceDifficulty: 2 MediumLearning Objective: 01-03 Identify specialbusiness deductions specificallypermitted under the tax laws.
51.Award: 10.00 pointsRiley operates a plumbing business and this year the 3-year old van he used in the business wasdestroyed in a traffic accident. The van was originally purchased for $20,000 and the adjusted basiswas $5,800 at the time of the accident. Although the van was worth $6,000 at the time of accident,insurance only paid Riley $1,200 for the loss. What is the amount of Riley's casualty loss deduction?
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Term
One
Professor
N/A
Tags
Amortization, Depreciation, Interest, Expense, Don, 1 800, 4 600, casualty loss deduction

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