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During 2009, Harry, a self-employed accountant, travels from

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During 2009, Harry, a self-employed accountant, travels from Kansas City to Miami for a one-week business trip. While in Miami, Harry decides to stay for an additional 5 days of vacation. Harry pays $600 for airfare, $200 for meals, and $500 for lodging while on business. The cost of meals and lodging while on vacation was $300 and $500, respectively. How much may Harry deduct as travel expenses for the trip?;a. $600;b. $1200;c. $1260;d. $2100;e. none of the above;12. During the 2009 holiday season, Bob, a barber, gave business gifts to 34 customers. The values of the gifts, which were not of a promotional nature, were as follows;8 at $10 each;8 at $25 each;8 at $50 each;10 at $100 each;For 2009, what is the amount of Bob's business gift deduction?;a. $0;b. $280;c. $730;d. $850;e. none of the above;13. If a per diem method is not used, which of the following items is not required as substantiation for the deduction of travel expense?;a. amount spent;b. destination;c. business reason for the trip;d. departure and return dates;e. all of the above must be substantiated;14. Nancy owns a small dress store. During 2009, Nancy gives business gifts having the indicated cost to the following individuals;Mrs. Johns (a customer) $37 plus $3 shipping;Mr. Johns (non-client husband of Mrs. Johns) $10;Ms. Brown (a customer) $22;What is the amount of Nancy's deduction for business gifts?;a. $0;b. $50;c. $53;d. $62;e. none of the above;15. Richard operates a hair styling boutique out of his home. 300 of the 1,200 square feet of floor space are allocated to the boutique. Other information is as follows;Gross income from the boutique $10,000;Supplies for the boutique $2000;Depreciation on total residence $12000;Utilities for total residence $6000;What amount of income or loss from the boutique should Richard show on his return?;a. $10000 loss;b. $0 income or loss;c. $3500 income;d. $5000 income;e. none of the above;16. Peter operates a dental office in his home. The office occupies 250 square feet of his residence, which is a total of 1500 square feet. During 2009, Peter pays rent for his home of $12000, utilities of $4800, and maintenance expenses of $1200. What amount of the total expenses should be allocated to the home office?;a. $0;b. $2000;c. $2500;d. $3000;e. none of the above;17. April and Wilson are married and file a joint tax return. Wilson is a police officer, and in the current tax year he spends $375 on uniforms and $150 for dry cleaning the uniforms. April is in the National Guard and military regulations restrict her form waring her uniforms when she is off duty. The cost of her uniforms for the year was $225 and the cost of dry cleaning them amounted to $75. April was grated a uniform allowance of $200 for the year. She also purchased a pair of standard black shoes to war while on duty that cost $45. How much may they deduct of Schedule A for special clothing and uniforms (before applying the 2% of adjusted gross income limitation)?;a. $525;b. $625;c. $670;d. $825;e. none of the above;18. Which of the following employees may deduct the cost of a uniform?;a. a sock broker required by her employer to wear a business suit;b. a construction worker required by her employer to wear blue jeans;c. a washer repair woman who must wear overalls while on the job;d. a police officer who must wear a uniform while on duty;e. a delivery person who must wear khaki-colored clothes on the job;19. An accountable expense reimbursement plan;a. requires the employee only to substantiate expenses with receipts;b. does not require the employee to return any excess reimbursement;c. requires the employee to report business expenses as itemized deductions;d. requires the employee to substantiate expenses with receipts and to return any excess reimbursement;20. Chose the correct answer.;a. education expenses are deductible as a miscellaneous itemized deduction even if the education qualifies the taxpayer for a new trade or business;b. expenses required for education to maintain skills for the taxpayers current job are no deductible;c. the cost of a CPA review course is deductible as a miscellaneous itemized deduction;d. expenses for travel as a form of education are not deductible.

 

Paper#27267 | Written in 18-Jul-2015

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