29. A taxpayer places in service the following used properties during the year:

Type of property	Date placed in service	Cost
Machinery	March 17	55,000
Equipment	October 25	524,000
Warehouse	November 8	160,000

The taxpayer elects to expense the maximum amount of Section 179 expense allowed in 2014 and elects to apply Section 179 expensing to the equipment. For purposes of determining whether the half-year or mid-quarter convention applies, the percentage of property placed in service in the fourth quarter is:

Question 29 options:

1)

43.1%.

2)

30.4%.

3)

77%.

4)

90.50%.

5)

92.6%

30. On June 25, 20X1, a taxpayer places in service 5-year listed property that cost $10,000. The taxpayer uses the property 65% for business during 20X1 and depreciates the property using regular (accelerated) MACRS. No Section 179 or bonus depreciation was taken on the property. During 20X2, the taxpayer's business usage drops to 40%. The taxpayer's depreciation expense for the property in 20X2 is:

Question 30 options:

1)

$2,000.

2)

$1,300.

3)

$2,080.

4)

$800.

5)

$3,200.

31. Which of the following expenditures incurred on an apartment building is not treated as an improvement?

Question 31 options:

1)	Replacing broken windows

2)	Installation of a new roof

3)	Paving a driveway

4)	Replacing the kitchen cabinets

5)	All of the above are treated as improvements

32. A taxpayer is active in three different passive activities, none of which are real estate rental activities. The income (loss) from these activities follows:

	Activity	Income or (Loss)
	A	$10,000
	B	(20,000)
	C	(30,000)

The passive loss carryover attributable to Activity B is:Question 32 options:

1)

$0.

2)

$10,000.

3)

$20,000.

4)

$24,000.

5)	none of the above