22) The IRA deduction that is an adjustment to income on Form 1040, line 10a is allowed for

Select one:

a. Roth IRA contributions

b. 401(k) deferred compensation contributions

c. Rollovers to a traditional IRA

d. Traditional contributions only

23) Jose works as a painter for Saner Construction. He fell off a ladder and broke his leg. Jose received Worker's Compensation for this accident. How will this income be treated on his Form 1040?:: Jose works as a painter for Saner Construction. He fell off a ladder and broke his leg. Jose received Worker's Compensation for this accident. How will this income be treated on his Form 1040?

Select one:

a. It will not be taxable and not reported on Form 1040

b. It will be credited from his wages on Schedule 3 line 6

c. It will be taxed as ordinary income on Schedule 1 line 8

d. It will be treated as a disability pension on Schedule 1 line 8

24) If the divorce decree was executed before 2019, which of the following circumstances are not deductible alimony?

Select one:

a. Payments are paid by cash, money order, or check

b. Payer and recipient spouse file a joint return with each other

c. Payments are not required after death of the recipient spouse

d. Payments are not designated in the divorce or separation instrument as not alimony

25) Herman is a self-employed widget salesman. He uses a room in his home to store inventory and product samples. He does not have a store or other fixed business location. Which statement below is correct?

Select one:

a. Herman must meet the principal place of business to claim a deduction for his home

b. Herman can claim the business use of home deduction

c. Herman can claim the deduction only if he uses his detached garage to store samples

d. Herman must be an employee of the widget factory to claim the business use of home deduction

26) John paid $60,000 to replace the roof on a warehouse he used in his business. In addition, he spent $12,500 to demolish and remove the old roof before he could start work on the replacement roof. Which of the following is a correct statement?

Select one:

a. John must deduct $72,500 unless he elects not to do so

b. John may claim the $12,500 as a loss on a "partial disposition" unless he elects not to do so

c. John must add the $72,500 to the original cost basis of the underlying property and retroactively re-calculate depreciation expense on that property from the original placed-in-service date

d. John may elect to claim the $12,500 as a loss on a "partial disposition"