1. Geither LLC patented a process it developed in the current year. The patent is expected to create benefits for Geither over a 10

year period. The patent was issueed on April 15th and the legal costs associated with the patent were $43,000. In addition, Geither had unamortized research expenditures of $15,000 related to the process. What is the total amortization of expense Geither may deduct during the current year?

a. $2,417

b. $2,559

c. $4,108

d. $4,350

e. None of the above

2. When selling stocks, which method of calculating basis provides the greatest opportunity for minimizing gains or increasing loss?

A. LIFO

B. FIFO

C. Weighted average

D. Specific identification

E. None of these

3.In X8, Erin had the following capital gains (losses) from sales of her investments. $2,000 LTCG, $25,000 STCG, ($9,000)LTCL, and ($15,000) STCL. What is the amount and nature of Erin's capital gains and losses?

a. $3,000 net short term capital gain

b. $3,000 net long term capital loss.

c. $4,000 net short term capital gain

d. $4,000 net long term capital loss.

e. None of these.

4.Poplock LLC purchased a warehouse and land during the current year for $350,000. The purchase price was allocated as follows:

$275, 000 to the building and $75, 000 to the land. The property was placed in service on August 12. Calculate Poplock's maximum depreciation for this first year, rounded to the nearest whole number.

a. $2,648

b. $3,371

c. $3,751

d. $4,774

e. None of these

5.Which of the following is how gain or loss realied is calculated?

a. Cash less selling costs

b. Cash basis less cost recovery

c. Cash less cost recovery

d. Amount realized less adjusted basis

e. None of these/