DEDUCTIONS AND LOSSES: CERTAIN BUSINESS EXPENSES AND LOSSES
1. Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account
receivable for $25,000. This year, the account was settled for $
Practice Exam #1: this will be a closed book/ closed note exam.
I will give you the following attachments: cover pages 1 and 2 (first part of book),
Figures 1.2 & 2.1 & 2.3 & 3.1.
Exhibits 2.1 & 3.1 & 3.2 & 3.3 & 5.1.
1. In preparing his 2010 Federal income tax return, Sam, who is not married, incorrectly claimed alimony
payments of $12,000 as an itemized deduction (rather than as a deduction for AGI). Sams AGI is
$60,000 and itemized deductions (wh
These chapter summaries will highlight some information we discussed and some things
we didnt. I will also add additional analysis and examples, as applicable, for each
chapter. You should not expect that this information is all-incl
CHAPTER 17 Know: What is a Section 1231 asset? What is Section 1245? What is deprecation recapture?
MULTIPLE CHOICE 1. White Company acquires a new machine for $35,000 and uses it in White's manufacturing operations. A few months after White places the ma
MULTIPLE CHOICE 1. The tax law requires that capital gains and losses be separated from other types of gains and losses. Among the reasons for this treatment are: a. Long-term capital gains may be taxed at a lower rate than ordinary gains. b. C
MULTIPLE CHOICE 1. Which of the following statements is correct? a. In a nontaxable exchange in which gain is realized, the transaction results in a permanent recovery of more than the taxpayer's cost or other basis for tax purposes. b. In a no
CHAPTER 14 Know: how is realized gain/ loss calculated? What is realized gain/ loss? What is recognized gain/ loss? How do we calculate recognized gain loss? What is basis? How do we calculate basis?
MULTIPLE CHOICE 1. Albert purchased a tract of land for
CHAPTER 13 Know: what is a credit? What is a refundable credit vrs a nonrefundable credit? Which is better a credit or a deduction? Why?
MULTIPLE CHOICE 1. Roger is considering making a $3,000 investment in a venture that its promoter promises will genera
CHAPTER 12 ALTERNATIVE MINIMUM TAX
MULTIPLE CHOICE 1. Which of the following statements is correct? a. The purpose of the AMT is to replace the regular income tax. b. Adjustments can either increase AMTI or decrease AMTI. c. Tax preferences can either inc
Please remember that these quizzes are not group work. Quizzes can be printed and
brought to class. If you will be absent, you may send in advance. Quizzes received late
will not be graded. Please staple and include your name.