1.Nancy owns a small dress store. During 2015, Nancy gives business gifts having the indicated cost to the following individuals:

Mrs. Johns (a customer)	$22 plus $3 shipping
Mr. Johns (nonclient husband of Mrs. Johns)	$10
Ms. Brown (a customer)	$22

What is the amount of Nancy's deduction for business gifts?

a.	$0
b.	$50
c.	$53
d.	$62
e.	$47

2. Which of the following would be a business bad debt if it were uncollectible?

a.	A taxpayer loans his father $1,000 to start a business.
b.	A taxpayer loans his son $10,000 to purchase a rental house.
c.	A dentist, using the accrual basis of accounting, who records income when it is earned and extends credit to a patient for services provided.
d.	A taxpayer loans his brother $3,000 to purchase a truck for use in his brothers business.
e.	None of the above.

3. Lester rents his vacation home for 8 months and lives in the home during the other 4 months of 2015. The gross rental income from the home is $4,500. For the entire year, real estate taxes are $800, interest is $3,000, utilities and maintenance expenses are $2,200, and depreciation expense on the entire home would be $3,000. What is Lesters deductible rental expenses from renting his vacation home?

a.	$5,500
b.	$4,500
c.	$6,000
d.	$9,000
e.	None of the above

4. Which of the following statements is false about health savings acounts (HSAs)?

	a.	HSAs must be paired with qualifying high-deductible health insurance.
	b.	Taxpayers qualifying for Medicare do not qualify to make HSA contributions.
	c.	Distributions from HSAs which are not used for medical expenses are generally subject to a 20 percent penalty and income taxes.
	d.	Distributions from HSAs which are used for qualifying medical expenses are not subject to tax or penalty.
	e.	Contributions to HSAs are deductible as itemized medical deductions.

5. Thelma works at a liquor store in 2015 and makes $44,000. She also has dividend income of $12,000 and interest income of $1,000. She owns a beach house that gives her $10,000 in rental income and she owns a stake in a limited partnership that generates a $15,000 loss. What is her adjusted gross income in 2015?

a.	$58,000
b.	$45,000
c.	$69,000
d.	$57,000
e.	$54,000

6. Ellen supports her family as a self-employed attorney. She reports $90,000 of income on her Schedule C and pays $8,000 for health insurance for her family, $2,500 for dental insurance, and $4,000 for health insurance for her 23-year-old daughter who is no longer a dependent. What is Ellens self-employed health insurance deduction?

a.	$8,000
b.	$10,500
c.	$12,000
d.	$14,500
e.	$13,500

7. Which of the following is not a test which must be met to qualify for the moving expense deduction?

a.	The taxpayer must stay with the same employer.
b.	The taxpayer must change job sites.
c.	The taxpayer must remain at the new job location for 39 weeks during the 12 months following the move (78 weeks out of 24 months if self-employed).
d.	The distance from the taxpayers former residence to the new job must be at least 50 miles more than the former residence to the former job.
e.	All of the above are tests for the moving expense deduction.