T10-Chp-07-2-HW-Prb

T10-Chp-07-2-HW-Prb -...

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53de5e0836fe28e13dd1e75f25c3bbb2e92466da.doc. Page 1 of 3 First & Last Name: Homework-Chapter 7. (The current year is 2009. Write name at top of each page. ) An owner of C Corp. has asked you for advice. The corporation was started in 2007. Actual Actual Actual Plan Amounts ($000) 2007 2008 2009 2010 Revenue $100 $200 $200 $300 Expenses (98) (173) (225) (225) Taxable income (loss) $2 $27 ($25) $75 1 How much tax benefit can be realized from the loss in 2009 if no special election is made? a. None b. $3,750 c. $5,000 d. $6,250 e. $25,000 2 How much tax benefit can be realized from the loss in 2009 if a special election IS made ? a. None b. $3,750 c. $5,000 d. $6,250 e. $25,000 3 Neil owns a 50% interest in a limited partnership that operates an apartment complex. During the current year, the partnership generates a taxable rental loss of $42,000. Neil's other sources of income are salary of $55,000 and interest of $18,000. What is Neil's deductible loss from the apartment? a. $ - 0 - b. $18,000 c. $21,000 d. $25,000 e. Other 4 In the current year, Marci worked two "jobs." She performed financial consulting activities for 1,000 hours and real estate development and rental activities for 1,200 hours. Her real estate activities produced a loss of $35,000. Her financial consulting generated a net business income of $40,000. How much of the loss can Marci deduct against her financial consulting income? a. $ - 0 - b. $17,500 c. $25,000 d. $35,000 e. $40,000 5Heathcliff and Gertrude file a joint income tax return for the year. Heathcliff received wages of $50,000. Gertrude actively participated in a rental real estate activity in which she had a $30,000 loss. They had no other income. How much of the rental loss may they deduct on their income tax return for the year? a. $0 b. $12,500 c. $15,000 d. $25,000 6 Harold and Heather file a joint income tax return. Harold received wages of $120,000. Heather actively participated in a rental real estate activity in which she had a $30,000 loss. They had no other income. How much of the rental loss may they deduct on their income tax return for the year?
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T10-Chp-07-2-HW-Prb -...

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