1. Melanie invested $5,000 in the Sunshine Limited Partnership and received a 10 percent limited partnership interest in the partnership. The partnership had $20,000 of recourse debt and $20,000 of nonrecourse debt. she is not responsible to repay because she is a limited partner. Melanie is allocated a 10 percent share of both types of debt resulting in a tax basis of $9,000 and an at risk amount of $7,000. During the year, Sunshine generated a ($90,000) loss. How much of Melanies loss will be disallowed due to her tax basis or at-risk amount?

		a. $2,000.
		b. $7,000.
		c. $9,000.
		d. $5,000.

2. Jerusha is single. In 2020 she claimed the standard deduction for regular tax purposes ($12,400). She had no other adjustments. Her regular taxable income was $67,800. What is Jerusha's AMTI?

		a. $67,800.
		b. $80,200.
		c. $55,400.
		d. None of the above.

3. Marcus made $154,300 in 2020 working as an employee of the ABC Company. How much should his employer withhold from his paycheck for FICA taxes if the calculation is made correctly? (Rounded).

		a. $11.804.
		b. $8,537.
		c. $21,550.
		e. $10,775.

4. Jerome, who is single, is an attorney and operates his law firm as a sole proprietor. In 2020, Jerome had qualified business income from his law firm of $350,000. His taxable income for 2020 was $270,000. Calculate Jeromes qualified business income deduction for 2020.

		a. $70,000.
		b. $54,000.
		c. zero.
		d. None of the above

5. In 2020 Sarah had two capital asset transactions. One resulted in a long-term capital gain of $15,000 and the other resulted in a long-term capital loss of $20,000. What amount of capital loss carryover will Sarah have as a result of these two transactions?

		a. $5,000.
		b. $3,000.
		c. $2,000.
		d. $20,000.

6. Lindsey, a single taxpayer with AGI of $40,000, paid $10,000 of tuition to attend the University of Miami. How much of this payment can Lindsey deduct as a qualifying educational expense?

		a. $5,000.
		b. $4,000.
		c. $2,500.
		d. zero.

7. During the year Nathan paid $12,000 of state income taxes and $4,000 of real estate taxes on his personal residence. What total amount of these payments can Nathan deduct as itemized deductions?

		a. $16,000.
		b. $12,000.
		c. $4,000.
		d. $10,000.