$1.$ Charles, an individual, owned $100\%$ of the Alpha, an S corporation. At the first of the year, Charles' basis in Alpha was $$25,000.$ In the current year, Alpha realized ordinary income of $$1,000$; and a long term capital gain of $$3,000.$ Alpha distributed $$25,000$ to Charles at the end of the year. What amount of the $$25,000$ is taxable to Charles?

$$7,000$

$$1,000$

$$0$

$$25,000$

$2.$ Terra Corporation, a calendar$-$year taxpayer, purchases and places into service in $2023$ machinery with a $7-$year life that cost $$650,000.$ The mid$-$quarter convention does not apply and Terra chooses to not use bonus depreciation. Terra$$s taxable income for the year before the Sec. $179$ deduction is $$600,000.$ What is Terra$$s total depreciation deduction related to this property?

$$92,885$

$$600,000$

$$650,000$

$$500,000$

$3.$ Paul Samuels, a single taxpayer with over $$600,000$ of taxable income, is considering several investments. He would like to maximize any available deductions from these pass$-$through entities. Which of the following investments would provide a FROM AGI deduction $($QBID$)$ for Paul?

An Investment in an S Corporation that performs architecture services.

An Investment in a Legal Firm Partnership.

An Investment in a C Corporation that performs real estate services

An Investment in an Accounting Partnership

$4.$ Elaine owns an unincorporated manufacturing business. In $2024,$ she purchases and places in service $$600,000$ of qualifying five year equipment for use in her business. Her taxable income from the business before any section $179$ deduction is $$100,000.$ Which of the following statements is true?

Elaine can deduct $$100,000$ as a Section $179$ deduction in $2024$ with a $$500,000$ carryover to the next year

Elaine can deduct $$600,000$ as a section $179$ deduction in $2024$

Elaine cannot deduct any Section $179$ deduction for $2024$

Elaine can deduct $$100,000$ as a Section $179$ deduction in $2024$ with a $$400,000$ carryover to next year.

$5.$ In June of $2023,$ Alice acquired her only machine for $$30,000$ to use in her business. The machine is classified as $5-$year property. Alice$$s maximum depreciation $($including bonus$)$ on the machine in $2023$ is:

$$25,200$

$$6,000$

$$30,000$

$$18,000$

$6.$ In June of $2023$ Frederick acquired an passenger automobile for $$65,000$ and used the automobile $80\%$ for business. The maximum depreciation deduction for $2023$ is:

$$16,160$

$$20,200$

$$8,000$

$$12,200$

$7.$ In August of $2023,$ Joseph acquires and places into services business equipment costing $$1,300,000.$ The equipment is classified as $5-$year recovery property. No other acquisitions are made during the year. Joseph elects to expense the maximum amount under Sec. $179$ but does not elect to use bonus. Joseph$$s total deductions for the year are:

$$1,300,000$

$$1,188,000$

$$1,092,000$

$$1,160,000$

$8.$ For the current tax year, VBN$,$ an S Corporation distributes $$100,000$ to its sole shareholder, Raymond. His basis in the stock was $$140,000$ before distribution. VBN had once been a regular C Corporation and had remaining accumulated earnings and profits $($E&P$)$ from those years of $$70,000.$ However, VBN has no balance in its accumulated adjustment account. How should the distribution of $$100,000$ be handled?

$$100,000$ as a taxable distribution

$$70,000$ as a taxable dividend; and $$30,000$ as a capital gain

$$50,000$ as a taxable dividend, and $$100,000$ as a nontaxable return of capital

$$70,000$ as a taxable dividend, and $$30,000$ has a nontaxable return of capital

PLEASE DO NOT USE AI THE ANSWERS ARE WRONG!!!!