11. Acacia Company had inventory of $300,000 on December 31, 2016. Other information is as follows: purchases $1,500,000, sales 1,800,000, and inventory January 1, 2016 500,000? What is the amount of Acacia's cost of goods sold for 2016? (Points : 1)

$2,000,000 $1,600,000 $1,700,000 $1,800,000 None of the above

16. Deductible transportation expenses: (Points : 1)

Include meals and lodging. Include only costs incurred while away from home. Do not include the normal costs of commuting. Do not include daily expenses for transportation between the taxpayer's home and temporary work locations if the taxpayer has a regular place of business.

17. Which of the following taxpayers may not use the standard mileage method of calculating transportation costs? (Points : 1)

A self-employed CPA who drives a computer-equipped minivan to visit clients. A taxpayer who has a fleet of 10 business automobiles. A real estate salesperson who drives a $70,000 Mercedes while showing houses. An attorney who uses his Yaris for calling on clients. All of the above taxpayers may use the standard mileage method.

28. Choose the correct statement: (Points : 1)

If a taxpayer does a lot of business travel, the taxpayer may deduct the amount paid for an airline club membership. Membership dues to a golf club are deductible as long as there is a business purpose. In order to be deductible, dues and subscriptions must be related to the taxpayer's occupation. If a financial planner becomes certified, then she/he may not deduct the Certified Financial Planner (CFP) dues because it is not necessary to be certified in order to engage in the business of being a financial planner.

30. Choose the correct answer. (Points : 1)

Education expenses are deductible on Schedule C even if the education qualifies the taxpayer for a new trade or business. Expenses required for education to maintain skills for the taxpayer's current business are not deductible. The cost of a CPA review course is deductible by a bookkeeper on his Schedule C. Expenses for travel as a form of education are not deductible.

31. Teachers at the kindergarten through high school level may deduct up to $225 of education supplies and materials cost each year ($400 married filing jointly). (Points : 1)

True False

42. Sherri is a tax accountant. She prepared a large corporate tax return 2 years ago and billed $5,000 to her client. After 2 years of attempting to collect the money, it is clear that she will not be able to collect anything since the business has gone bankrupt. She reports income on her tax return on the accrual basis as she bills it, so the $5,000 was included in her taxable income 2 years ago. Can she claim a bad debt deduction for the $5,000? (Points : 1)

Yes No

please answer all