11 Residential rental property is depreciated using which class life? Choose one answer. a. 25 years O b. 27.5 years c. 31 years d. 30 years Which of the following statements is correct for underpayment of estimated tax penalty? (Select all that apply.) Choose at least one answer . The penalty is figured separately for each payment period b. You will not owe a penalty the total w holding and estimated tax payments did not equal the amount of tax required to be paid for a tax period you make up the amount later Form 2210 is used to figure the underpayment penalties The IRS can waive the penalty it determines you did not make a payment because of a casually disaster or other unusual Circumstance, and it would be inequitable to impose the penalty A taxpayer must report the full amount of gambling winnings on Schedule 1, line 21. How are gambling losses reported? Choose one answer. a. On Schedule A, line 16 with no limitations b. On Schedule A as other itemized Deductions and limited to gambling winning included on Line 21 c. Subtracted from gambling winnings before reporting on line 21 d. On Schedule 1, line 36 as an adjustment to income. Due diligence would not include: Wars: 1 Choose one answer. a. Intentional disregard for rules and regulations b. Completion of Form 8867 C. A serious and earnest effort to get truthful information d. Taking care not to submit inflated or erroneous claims 15 To determine the cost of goods sold a taxpayer must keep track of: (Select all that apply.) Marca: 1 Choose at least one c answer. a. Inventory at the beginning of the year. b. Inventory at the end of the year. c. Cost of purchases of inventory. d. Amount of purchases paid by credit card 0 Number of customers Which of the following is true for a non-dividend distribution? (Select all that apply.) Choose at least one answer. . The distribution reduces the basis of the stock. b. It is not taxed until the basis of the stock is fully recovered. It is called a return of capital d. It is included in ordinary dividends. It is reported in box 1 of 1000-DIV What are the five filing statuses? Marks: 1 Choose one answer. O a Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Widower) b. Married, Never Married, Divorced, Legally Separated, Widowed c. Single, Married Filing Jointly, Married Fling Separately, Head of Household, Divorced d. Single, Married Filing Jointly, Married Filing Separately. Qualifying Widow, Qualifying Widower Marks: 1 To be eligible for the exclusion of gain on the sale of a home, you must meet which of the following tests? (Select all that apply.) Choose at least ono answer a . Main home test b. Ownership test c. Use test d. Relationship test Cost of home test Which of the following statements are correct for converting a traditional IRA to a Roth IRA? (Select all that apply.) Marka: 1 Choose at least one answer a. A Roth IRA conversion is tacable. b. It is subject to a 10% additional tax. c. Any part of the conversion that represents basis is not tocable d. Form 1000-R box 7 should contain code 2 for the conversion e. You can convert a Required Minimum Distribution (RMD) into a Roth. Maret If the custodial parent has not signed a Form 8332 release, which of the following are requirements to be a qualifying child for the child tax credit? (Select all that apply.) Choose at least one answer . Achid that lived with the taxpayer for more than half of the your b. Achid that provided all of their support c. Achid that is a not a US citizen d. Achild under age 17 at the end of the tax year