acct2 - 2(TCOs 3 4 5 7 Stanley is an executive for the...

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2. (TCOs 3, 4, 5, & 7) Stanley is an executive for the Elegant Furniture Manufacturing Company. Stanley purchased furniture from the company for $2,000, the price Elegant ordinarily charges a wholesaler. The retail price of the furniture was $4,000. The company also paid for Stanley's parking space in a garage near the office. The parking fee was $1,500 for the year. Only highly compensated employees are allowed to buy furniture at the wholesaler's price. In addition, the company does not pay other employees' parking fees. Stanley's gross income from the above is:(Points : 5) $0. $1,500. $2,000. $3,500. None of the above 3. (TCOs 3, 4, 5, & 7) Which of the following qualifies for the medical expense deduction? (Points : 5) Funeral expenses Toiletries Nonprescription drugs Weight reduction programs related to obesity None of the above 4. (TCOs 3, 4, 5, & 7) During 2009, Eleanor earns $146,000 in wages as an employee of an accounting firm. She also earns $26,000 in gross income from an outside consulting service she operates. Deductible expenses paid in connection with the consulting service amount to $6,000. Eleanor also has a recognized long-term capital gain of $1,000 from the sale of a stock investment. She must pay a self- employment tax of: (Points : 5) $0. $20,000. $26,000. $27,000. None of the above 5. (TCOs 3, 4, 5, & 7) Grady purchased a business asset (three-year property) on November 15, 2008 at a cost of $60,000. This is the only asset he purchased during the year. Grady did not elect to expense any of the asset under § 179, and he did not elect straight-line cost recovery. Grady sold the asset on May 13, 2009. Determine the cost recovery deduction for 2009. (Points : 5) $7,500 $13,750 $19,998 $36,666 None of the above 6. (TCOs 3, 4, 5, & 7) Maxwell owns 2,000 shares of stock in Falcon Corporation, worth $50 per share. The 2,000 shares were purchased in 2001 for $10 per share. In 2009, the corporation issued a 30% stock
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acct2 - 2(TCOs 3 4 5 7 Stanley is an executive for the...

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