income tax chapter 6 quizzes (1) - Marks: 1 An ordinary...

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Marks: 1 An ordinary expenditure is one which is commonly incurred by other businesses. Answer: True False Correct Marks for this submission: 1/1. Question 2 Marks: 1 Transportation expenses are defined for tax purposes as the costs of transporting an employee from one location to another when the employee is not in a travel status. Answer: True False Correct Marks for this submission: 1/1. Question 3 Marks: 1 Taxpayers cannot deduct the costs of tickets to any entertainment activity or facility regardless of whether or not the taxpayer's attendance at the activity is related to business. Answer: True False Fifty percent of the cost of tickets to an entertainment activity or facility are deductible if the activity immediately precedes or follows substantial business discussions. Correct Marks for this submission: 1/1. Question 4 Marks: 1 Acquisition costs a taxpayer incurs in the unsuccessful attempt to acquire a specific business cannot be deducted. Answer: True False These costs can be deducted as losses. Correct Marks for this submission: 1/1. Question 5 Marks: 1 If a taxpayer drives 10,000 business miles during 2011, and uses the standard mileage method, the taxpayer's deduction is: Choose one answer. a. $4,900 b. $2,400 c. $4,750
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d. $5,100 e. none of the above The 2011 mileage allowance is 51 cents per mile. Correct Marks for this submission: 1/1. Question 6 Marks: 1 During the current year, a calendar year corporation incurred $52,000 of research and experimental expenditures. The corporation elects to capitalize and amortize the costs over 60 months. If the corporation first realizes benefits from the research and experimental expenditures on November 1 of the current year, its R&E deduction will equal: Choose one answer. a. $4,633 b. $3,544 c. $2,217 d. $1,733 $52,000 / 60 = $867 per month. For November and December, the corporation would be allowed a deduction of $1,733. Correct Marks for this submission: 1/1. Question 7 Marks: 1 The taxpayer's domestic production activities deduction cannot exceed 25 percent of its W-2 wages. Answer: True False The domestic production activities deduction cannot exceed 50% of the taxpayer's W-2 wages. Correct Marks for this submission: 1/1. Question 8 Marks: 1 A Code Sec. 197 intangible is amortized based on its actual or estimated useful life. Answer: True False Code Sec. 197 intangibles are amortized over 5 years without respect to their actual or estimated useful lives. Incorrect Marks for this submission: 0/1. Question 9 Marks: 1
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The IRS takes the position that a taxpayer's tax home, for purposes of determining travel expenses, is at the location of the taxpayer's: Choose one answer. a. Principal place of business b. Personal residence c. Principal place of business or personal residence, whichever results in a lower tax deduction d. Personal residence if located in excess of 50 miles from principal place of business A taxpayer's home for purposes of determining travel expenses is at the location of the
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This note was uploaded on 10/19/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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income tax chapter 6 quizzes (1) - Marks: 1 An ordinary...

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