Question
29. Which of the following is a disadvantage of operating as a sole proprietorship? A) All of these B) Unlimited personal liability C) Lack of
29. Which of the following is a disadvantage of operating as a sole proprietorship? A) All of these B) Unlimited personal liability C) Lack of continuity of life D) Difficulty in raising capital
30. Jameson has the following sources of income: Sole proprietorship income $40,000 General partnership operating income $5,000 Interest income from general partnership $1,200 What is the amount of self-employment tax Jameson owes? Round your answer to the nearest dollar. A) $7,069 B) $6,529 C) $6,885 D) $6,358
31. Which of the following is NOT a requirement for claiming a home office expense deduction? A) The trade or business must be the wholesale selling of products or services B) The use of the home office must be exclusive to the business C) The home office generally must be the principal place of business D) The home office must be used on a regular basis.
32. Which of the following statements regarding the simplified safe harbor method of computing the home office expense deduction is CORRECT? A) A rate of $10 per square foot of home office space is used in the safe harbor computation. B) The deduction may be used to create a loss. C) None of the deduction is treated as depreciation. D) Up to 500 square feet of home office may be taken into account under this method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started