1.(TCO E) Which of the following is not a passive activity?(Points : 5)

Owning a business and not materially participating Having rental condos Owning a limited partnership interest in a real estate limited partnership Owning a working interest in oil and gas properties

Question 2.2.(TCO D) How does the code define a capital asset?(Points : 5)

As inventory carried by the taxpayer's business As property used by the taxpayer in his or her business, which is depreciable As intangible property owned by the taxpayer, regardless of whether used in his or her business or not Does not define what a capital asset is, only what it is not

Question 3.3.(TCO B) Bob and Cindy Smith paid the following medical expenses during 2016 (all in excess of reimbursement). Hospital and doctor bills: $800 Medicine and drugs: $700 Hospitalization insurance premiums: $6,000 Medicine and drugs (for dependent mother, age 71): $1,000 Assuming that the Smiths' adjusted gross income was $60,000, how much of a medical expense deduction may Bob and Cindy claim on their joint return?(Points : 5)

$4,000 $2,500 $4,330 $8,500

Question 4.4.(TCO A) Which of the following expenditures is an itemized deduction for individual taxpayers?(Points : 5)

Charitable contributions State and local income taxes Medical expenses exceeding applicable floor All of the above

Question 5.5.(TCO F) If an expenditure is part business related and part personal, then _____.(Points : 5)

the entire expenditure is deductible for tax purposes no part of the expenditure is deductible for tax purposes the personal portion of the expenditure may be deductible for tax purposes only the business-related portion of the expenditure is deductible for tax purposes

Question 6.6.(TCO E) Josh sold a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Josh received $90,000 cash and a painting with a fair-market value of $20,000 from the buyer. The buyer also assumed Josh's $25,000 loan on the equipment. Josh paid $5,000 in selling expenses. What is the amount of Josh's gain on the sale?(Points : 5)

$90,000 $135,000 $75,000 $80,000

Question 7.7.(TCO I) Under the cash method of tax accounting, incomeis generally recognized when _____.(Points : 5)

cash is received the liability arises there is net income to absorb the expense revenue is earned

Question 8.8.(TCO D) Tom Smith had a short-term capital loss of $3,000 in 2016, a short-term capital gain of $1,900, a short-term capital loss carryover from 2015 of $700, a long-term capital gain of $1,800, and a long-term capital loss of $1,000. What is Tom's deductible loss in 2016?(Points : 5)

$1,000 $1,800 $2,000 $3,000

Question 9.9.(TCO A) The termpractice before the IRSrefers to _____.(Points : 5)

tax planning for nonprofit organizations macro-economic tax projections representing a client before the IRS tax planning for timber and forest investments

Question 10.10.(TCO F) To be deductible for tax purposes, a trade or business expenditure must be _____.(Points : 5)

ordinary. necessary. ordinary and necessary. ordinary or necessary.