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Strayer ACC 307 WK 11 Final Exam




Question;ACC 307 WK 11 Final Exam;1. One indicia of independent contractor (rather than employee);status is when the individual performing the services is paid based on;time spent (rather than on tasks performed). True False;2. In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C. True False;3. The IRS will notissue advanced rulings as to whether a worker?s status is that of an employee or an independent contractor. True False;4. Jake performs services for Maude. If Jake provides his own helper;and tools, this is indicative of independent contractor (rather than;employee) status. True False;5. A statutory employee is not a common law employee but is subject to income tax withholdings. True False;6. For tax purposes, a statutory employee is treated the same as a common law employee. True False;7. If an individual is subject to the direction or control of another;only to the extent of the end result but not as to the means of;accomplishment, an employer-employee relationship does not exist. True False;8. The work-related expenses of an independent contractor will not be subject to the 2%-of-AGI floor. True False;9. After she finishes working at her main job, Ann returns home, has;dinner, then drives to her second job. Ann may deduct the mileage;between her home and second job. True False;10. A taxpayer who maintains an office in the home to conduct his only business will not have nondeductible commuting expense. True False;11. After the automatic mileage rate has been set by the IRS for a year, it can later be changed by the IRS. True False;12. In choosing between the actual expense method and the automatic;mileage method, a taxpayer should consider the cost of insurance on the;automobile. True False;13. A taxpayer who uses the automatic mileage method to compute auto;expenses can also deduct the business portion of tolls and parking. True False;14. A deduction for parking and other traffic violations is allowed;under the actual cost method but not the automatic mileage method. True False;15. A taxpayer who uses the automatic mileage method for the business;use of an automobile can change to the actual cost method in a later;year. True False;16. Once the actual cost method is used, a taxpayer cannot change to the automatic mileage method in a later year. True False;17. For tax purposes, ?travel? is a broader classification than ?transportation.? True False;18. Amy lives and works in St. Louis. In the morning she flies to;Boston, has a three-hour business meeting, and returns to St. Louis that;evening. For tax purposes, Amy was away from home. True False;19. Janet, who lives and works in Newark, travels to Atlanta for a;Thursday-Friday business conference. She stays over after the;conference and visits relatives and friends on Saturday. Under certain;circumstances, the meals and lodging expenses for Saturday can be;considered as business related. True False;20. Marvin lives with his family in Alabama. He has two jobs: one;in Alabama and one in North Carolina. Marvin?s tax home is where he;lives (Alabama). True False;21. A taxpayer who lives and works in Kansas City is sent to Chicago;on an eight-day business trip. While in Chicago, taxpayer uses the hotel;valet service to have some laundry done. The valet charge is a deductible travel expense. True False;22. The tax law specifically provides that a taxpayer cannot be temporarily away from home for any period of employment that exceeds one year. True False;23. A taxpayer who lives and works in Tulsa travels to Buffalo for;five days. If three days are spent on business and two days are spent on;visiting relatives, only 60% of the airfare is deductible. True False;24. Bob lives and works in Newark, NJ. He travels to London for a;three-day business meeting, after which he spends three days touring;Scotland. All of his air fare is deductible. True False;25. Edna lives and works in Cleveland. She travels to Berlin for an;eight-day business meeting, after which she spends four days touring;Germany. All of Edna?s airfare is deductible. True False;26. Daniel just graduated from college. The cost of moving his;personal belongings from his parents? home to his first job site does;qualify for the moving expense deduction. True False;27. Tired of her 60 mile daily commute, Margaret purchases a condo;that is only five miles from her job. Margaret?s moving expenses to her;new condo are allowed and can be claimed by her as a deduction. True False;28. In November 2012, Katie incurs unreimbursed moving expenses to;accept a new job. Katie cannot deduct any of these expenses when she;timely files her 2012 income tax return since she has not yet satisfied;the 39-week time test. True False;29. In May 2012, after 11 months on a new job, Ken is fired after he;assaults a customer. Ken must include in his gross income for 2012 any;deduction for moving expenses he may have claimed on his 2011 tax;return. True False;30. A moving expense deduction is allowed even if at the time of the move the taxpayer did not have a job at the new location. True False;31. Kelly, an unemployed architect, moves from Boston to Phoenix to;accept a job as a chef at a restaurant. Kelly?s moving expenses are not;deductible because her new job is in a different trade or business. True False;32. Alexis (a CPA and JD) sold her public accounting practice in Des;Moines and accepted a job with the Seattle office of a national;accounting firm. Her moving expenses are not deductible because she has changed employment status (i.e., went from self-employed to employee). True False;33. Qualified moving expenses include the cost of lodging but not meals during the move. True False;34. Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI. True False;35. At age 65, Camilla retires from her job in Boston and moves to;Florida. As a retiree, she is not subject to the time test in deducting;her moving expenses. True False;36. An education expense deduction is not allowed if the education results in a promotion or pay raise for the employee. True False;37. Lloyd, a practicing CPA, pays tuition to attend law school.;Since a law degree involves education leading to a new trade or;business, the tuition is not deductible. True False;38. Under the right circumstances, a taxpayer?s meals and lodging expense can qualify as a deductible education expense. True False;39. There is no cutback adjustment for meals and entertainment as to;employees who are subject to regulation by the U.S. Department of;Transportation. True False;40. Dove Corporation pays for a trip to Jamaica for its two top;salespersons. This expense is not subject to the cutback adjustment. True False;41. Mallard Corporation furnishes meals at cost to its employees by;means of a cafeteria it maintains. The cost of operating the cafeteria;is subject to the cutback adjustment. True False;42. Every year, Penguin Corporation gives each employee a fruit basket and a bottle of wine at Christmas. These gifts are notsubject to the cutback adjustment. True False;43. A taxpayer takes six clients to an NBA playoff game. If all of;the tickets (list price of $120 each) are purchased on the Internet for;$1,800 ($300 each), only $150 ($300 ? 50% cutback adjustment) per ticket;is deductible. True False;44. Ethan, a bachelor with no immediate family, uses the Pine Shadows;Country Club exclusively for his business entertaining. None of Ethan?s;annual dues for his club membership are deductible. True False;All the Questions are Included...


Paper#39234 | Written in 18-Jul-2015

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