During the current year ashley corporation charged

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[8]During the current year, Ashley Corporation charged the following payments tomiscellaneous expense:Travel expense of $300 for the company president to offervoluntary testimony at the state capital against proposedlegislation regarded as unfavorable to its businessChristmas gifts to 20 customers at $75 eachContribution of $600 to local political candidateThe maximum deduction that Ashley can claim for these payments isA. $800B. $1,400C. $1,800D. $2,400
[9]Mr. Lee rents his vacation home. Given the following information, determine the correcttreatment of the rental income and expenses on his current-year return.Days rented in the current year tounrelatedparties at a fair rental price56Days used for personal purposes in thecurrent year18Total income and (expenses) during the currentyear:Gross rental income$5,000Allocated interest and taxes(4,000)Other allocated expenses(1,500)Net rental loss$ (500)
<A9> 2021 Gleim Publications Inc.Acct 144 Sample Exam 2 Ch 5-7 3
[10]Mrs. R owns a beach cottage that she rented out for 3 months, lived in for 1 month, and triedunsuccessfully to rent for the rest of the year. Mrs. R received rental income of $5,600. Her totalexpenses for the cottage were as follows:Interest$3,000Taxes1,800Utilities1,500Maintenance900Depreciation2,400What is Mrs. R’s net rental income or loss to be reported on her income tax return?
[11]Which of the following is deductible by a calendar-year taxpayer to arrive at adjusted grossincome in the current year?
[12]The expenses from an activity are not deductible if that activity is classified as a hobby. Ataxpayer may, however, establish the presumption that an activity (one not related to horses) is abona fide business engaged in for profit if the activityA. Shows a profit at least 50% of the time.B. Is profitable at least 2 out of 5 consecutive years.C. Is profitable at least 2 out of 7 consecutive years.D. Is profitable at least 3 out of 5 consecutive years.

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