TAX_T1_Sol3.pdf - 14. Award: 10.00 points The deduction for...

14.
Award: 10.00 points
The deduction for business interest expense is limited to the sum of (1) business interest income
and (2) 30 percent of the adjusted taxable income of the taxpayer for the taxable year.
True
False
15.
Award: 10.00 points
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Identify special
business deductions specifically
permitted under the tax laws.
A loss deduction from a casualty of a business asset is only available if the asset is completely
destroyed.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Identify special
business deductions specifically
permitted under the tax laws.

16.
Award: 10.00 points
All taxpayers must account for taxable income using a calendar year.
True
False
17.
Award: 10.00 points
18.
Award: 10.00 points
References
True / False Difficulty: 1 Easy Learning Objective: 01-04 Describe
accounting periods available to
businesses.
A short tax year can end on any day of any month other than December.