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According to the Uniform Capitalization Rules of Code Sec 263A, which of the following costs are required to be capitalized.CorrectIncorrect
A consultant has the following income items:
Self Employment Income: $55,000
Rental Income: $30,000
Dividend Income: $4,500
Long-Term Capital Gain: $3,600
Short Term Capital Loss: $2,200
What should the consultant report as passive income?CorrectIncorrect
Which of the following deductions is used in calculating an individuals adjusted gross income?CorrectIncorrect
Shell Corp. purchased a tractor for business use for $40,000 and made $2,000 in improvements. After deducting $7,000 for depreciation, Shell Corp gave the equipment to Bean Corp for business use. At the time the gift was made, the tractor had a fair market value of 39,000.
Ignoring gift tax consequences, what is Bean Corp.’s basis in the equipment?CorrectIncorrect
Top Corp files a consolidated return with Sub Corp and Sub2 Corp. They have filed a consolidated return since their inception. The entities had the following taxable income (loss) for Year 3.
Top Corp $40,000 Sub Corp ($70,000) Sub2 Corp ($15,000)
Neither member reported a capital gain or loss on charitable contribution. What is the consolidated net operating loss?CorrectIncorrect
Jake owned 40% of the outstanding stock of Bell Corporation. During the year, Bell Corporation recorded $300,000 in taxable income. They also distributed $50,000 in dividends to its shareholders.
What is the gross income on Jake’s tax return if Bell Corporation is a C Corporation and what would gross income be if it was an S Corporation?
C Corporation S Corportation A $170,000 $50,000 B $50,000 $170,000 C $140,000 $20,000 D $20,000 $120,000CorrectIncorrect
Which type of income can generally offset a passive activity loss?CorrectIncorrect
Bridge Organization, a not-for-profit entity, has the following types of income. Which are included in unrelated business income?
- Rent from real property where substantial personal service is provided
- Gain from the sale of property not held for sale to customer in the ordinary course of business
- Income from research activities by a hospital
- Interest and dividend income from investments
Garret gave land to as a gift to Tyler. Garret purchased the land for $9,000 and the fair market value of the land at the time of the gift was $6,000. Tyler sold the land for $7,000. What amount of gain should be recorded?CorrectIncorrect
Grant sold a personal residence with an adjusted basis of $80,000 for $175,000. He owned and lived in the residence for 9 years. The selling expense on the property was $15,000. A month before the sale, Grant upgraded all the sinks for $3,000.
What is the gain recognized by Grant if he is unmarried?CorrectIncorrect