TB Individual Income ch. 06

TB Individual Income ch. 06 - CHAPTER 6 DEDUCTIONS AND...

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CHAPTER 6 DEDUCTIONS AND LOSSES: IN GENERAL Instructor: The test items in both the print Test Bank and ExamView test-creation software are numbered by question type within each chapter. Thus, users of ExamView can more easily preview their selections using the printed Test Bank in the same numbering system. Learning Objective, Level of Difficulty, Estimated Time to Completion, and the AACSB’s and AICPA’s Core Competencie s for each test item are located within the item itself. Status: Q/P Question/ Present in Prior Problem Topic Edition Edition TRUE OR FALSE 1 Deductions for AGI and standard deduction Unchanged 1 2 Deductions for AGI versus from AGI Unchanged 2 3 Trade or business expenses and classification Unchanged 3 4 Employment related expenses and classification Unchanged 4 5 Production of income expenses and classification New 6 Moving expenses and classification Unchanged 6 7 Production of income expenses and classification New 8 Ordinary and necessary Unchanged 8 9 Ordinary business expenses: meaning of Unchanged 9 10 Reasonable salaries Modified 10 11 Reasonable salaries and other business expenses New 12 Closely held corporation and reasonable salaries Unchanged 12 13 Personal use asset losses Unchanged 13 14 Reporting procedures: sole proprietorship Unchanged 14 15 Accounting method: cash basis versus accrual basis New 16 Accounting method: cash basis Unchanged 16 17 Accounting method: credit cards Unchanged 17 18 Cash basis and “one-year rule” Unchanged 18 19 Prepaid rent and “one-year rule” Modified 19 20 Accrual basis and economic performance test Unchanged 20 21 Economic performance test and reserves Unchanged 21 22 Public policy limitation disallowance for bribes New 23 Fines and penalties Unchanged 23 24 Fines, penalties, and bribes: Foreign Corrupt Unchanged 24 Practices Act 25 Legal tax advice: preparation of tax return Unchanged 25 26 Treble damages Unchanged 26 27 Legal services: preparation of a will Unchanged 27 28 Legal expenses: rental property Unchanged 28 6-1
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6-2 2010 Annual Edition/Test Bank Status: Q/P Question/ Present in Prior Problem Topic Edition Edition 29 Legal expenses: defense in criminal action Unchanged 29 30 Illegal business: operating expenses Unchanged 30 31 Illegal business: deductions Modified 31 32 Lobbying expenses Unchanged 32 33 Excessive executive compensation Unchanged 33 34 Investigation of a business Unchanged 34 35 Investigation of a business Unchanged 35 36 Hobby losses and presumption rule Unchanged 36 37 Hobby losses and presumption rule Modified 37 38 Hobby losses and presumption rule Unchanged 38 39 Hobby expenses: tax treatment of Unchanged 39 40 Hobby losses Modified 40 41 Hobby expenses: classification of Unchanged 41 42 Vacation home: less than 15-days rule on Unchanged 42 rental use 43 Vacation home: less than 15-days rule on Unchanged 43 personal use 44 Vacation home: primarily rental Unchanged 44 45 Vacation home: less than 15-days rule on Unchanged 45 rental use 46 Vacation home:
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TB Individual Income ch. 06 - CHAPTER 6 DEDUCTIONS AND...

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