1.

Which of the following self-employed individuals are in a specified service trade or business? (circle all that apply)

a.CPA.

b.Architect.

c.Consultant.

d.Dentist.

e.None of these choices are correct.

2.

Calculate the taxpayer's 2019 qualifying business income deduction for a qualified trade or business:

Filing status: Single Taxable income: $180,000 Net capital gains: $0 Qualified business income (QBI): $80,000 W2 wages: $20,000

a.$16,000

b.$10,000

c.$2,700

d.$13,684

3.

Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $289,400 and fair market value of $434,100). Simon invests $347,280 of cash. They each receive 100 shares in Ion Corporation, worth $347,280, but Yvonne also receives $86,820 in cash from Ion.

Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.

Ion Corporation has a basis of $....................... in the equipment. Yvonne has a basis of $.................... for her stock and Simon has a basis of $.................. for his stock.

4. Sunset Corporation (a C corporation) had operating income of $200,000 and operating expenses of $175,000. In addition, Sunset had a $30,000 long-term capital gain, a $52,000 short-term capital loss, and $5,000 tax-exempt interest income. What is Sunset Corporation's taxable income for the year?

a.$22,000

b.$0

c.$3,000

d.$30,000

e.None of these choices are correct.

5.

Which of the following taxpayers is eligible for a qualified business income deduction regarding the activity noted? (circle all that apply)

a.A driver for Uber or Lyft.

b.Apple, Inc.

c.A partner of a Big 4 firm.

d.An employee working for Apple, Inc.

e.Toms Burger Place, a sole proprietorship.