1. Malena purchases an old refrigerator for her yogurt shop at a cost of $20,000 in 2015 that she figures will last another 5 years. Assuming the IRS tells you the fridge has a 7 year tax life, what is the most possible cost recovery deductions Malena can take in 2015 and 2016?

A. $11,429 and $2,449

B. $2,858 and $4,898

C. $4,000 and $6,400

D. $12,000 and $3,200

2. Stefan purchases a new asset for his profitable business in 2009 costing $850,000. This is the only asset Stefan purchases during the year. What will be the basis subject to MACRS depreciation?

A. 850,000

B. 425,000

C. 325,000

D. 300,000

3. In December 2016, Ann was lucky enough to be in the audience of the Ellen show when everyone in the audience was given a brand new car worth $24,000 retail value. Ann uses public transportation because she thinks all other drivers are crazy people, so she does not need the car but accepts it anyway. She gives it to her friend Art who does drive but already has two cars. Art then sells the car for $22,000 in cash on December 20, 2016, and splits the proceeds with Ann. How much taxable income do Ann and Art each have from the car transactions?

A. 0 and 22,000

B. 11,000 and 11,000

C. 24,000 and 22,000

D. 24,000 and 0

4. Jonathon is a manager at a local car dealer. One of the perks is being able to buy new cars for personal use at a discount. He pays $30,000 for a new SUV that has a retail price of $51,000. His dealership paid $38,000 for the SUV earlier in the year. What will be Jonathons basis in the SUV?

A. 43,000

B. 51,000

C. 30,000

D. 38,000

5. Captain America finally got tired of saving the world and so he retired in May 2017. After a couple of months doing nothing, he concluded that he was bored so he bought a used tugboat to help move ships around the San Francisco Bay. He bought the boat on September 10, 2017 and paid $1,998,996 including taxes and fees. How much will his MACRS deductions be for 2017?

A.510,000

B. 658,900

C.744,498

D.148,900

E.0

6. In 2014, Elsie had a $12,000 net short-term capital loss and deducted $3,000 on her return. In 2015, she has an $18,000 long-term capital gain. Which of the following statements is correct for 2015?

A. Elsie has a long-term capital gain of $18,000 and a short-term carryover to 2016 of $9,000

B. Elsie has a long-term capital gain of $9,000 and a carryover of $3,000

C. Elsie has a long-term capital gain of $9,000 and no carryover at all.

D. Elsie has a short-term capital gain of $9,000 and no carryover at all

7.Which of the following should be excluded from your taxable income:

A. Winning a truck for being the most valuable player in the World Series, but you give the truck away because the truck is a Chevy and you prefer Ford

B. Winning a truck on the Price is Right and you keep the truck

C. Winning a truck from a lottery ticket you bought from your childs high school fundraiser

D.None of the above should be excluded from your taxable income

E. All of the above should be excluded from your taxable income

8.Which of the following is never considered deductible on your tax return:

A.Child support payments

B.Bribes in foreign countries

C.Accountants fees

D.Laywers fees

IF ANSWERED ALL I WILL RATE YOU INSTANTLY MANY THANKS!