5, If an employee takes a customer to lunch and discusses business, can the employee deduct 50% of the meal for both the customer and him/herself? Explain.

6,Will an individual taxpayer ever have to recognize Section 1250 ordinary income on the sale of a building used for business and placed in service after 1986? Explain.

7,Justin and Louise have two children, ages 12 and 10. Their modified AGI is $120,500. What is their child tax credit?

8,Missys business purchased 2 assets during 2014. It placed in service computer equipment (5-year property) on January 20, 2014 with a basis of $15,000 and machinery (7-year property) on October 1 with a basis of $15,000. Calculate the maximum depreciation expense, rounded to a whole number (ignoring 179 and bonus depreciation).

9,On June 1, 2011, Xerox Corporation purchased and placed in service 7-year MACRS tangible property costing $100,000. On November 10, 2014, Xerox sold the property for $102,000 after having taken MACRS $47,525 in depreciation deductions. What is the amount and character (i.e., ordinary income vs. 1231 gain) of Xeroxs gain?

10,

Violet, an individual, began business 4 years ago and has never sold a 1231 asset. Violet owned each of the assets for several years. In the current year, she sold the following business assets:

Asset	Original Cost	Accumulated Depreciation	Gain/Loss
Machinery	$12,000	$7,000	$6,000
Furniture	10,000	2,000	3,000
Building	90,000	20,000	(5,000)

Assuming Violets marginal ordinary income tax rate is 30%, what is the amount and character of Violets gain? What is her tax liability?