24. Nonbusiness bad debts are deductible only as short-term capital losses? a. True b. False 25. In order to protect his investment, Mr. C, an officer and shareholder of Z Corporation, guaranteed payment of a bank loan received by the Corporation. Z defaulted on the loan and Mr. C was required to pay off the balance. Mr. C was unable to collect from Z Corp. Mr. C has a deductible nonbusiness bad debt? a. True b. False 26. Which of the following assets are depreciable or amortized for federal income tax purposes? (1) Land (2) Personal Residence (3) Rental Residence (4) Inventory (5) Acquired Goodwill (6) Business Automobile a. 3, 5, and 6 b. 1,2, and 3 c. 1 and 4 d. 3, 4, and 6 27. The costs of acquiring a lease or leasehold for business purposes may be recovered by amortizing the costs over the term of the lease? a. True b. False 28. Wendy Flower had an adjusted basis of $20,000 in mineral property. It is estimated that there are 40,000 tons of recoverable coal on the property. Wendy produced and sold 10,000 tons during the current year. What is her cost depletion deduction for the current year? a. $1,000 b. $5,000 c. $10,000 d. $15,000