69. Carl had significant start-up costs in the year he opened his contracting business. What method is Carl able to use to deduct start-up expenses not deductible in the year the business began? a) Amortization b) MACRS c) ACRS d) Depreciation 70. Carl's contracting business needs to show a profit for 3 out of 5 years to meet IRS criteria for business versus hobby. Which of the following is incorrectly listed as an indicator used by the IRS to distinguish a non-profitable activity as a business? Thorough and business-like books b) a) Separate business checking account c) Separate credit cards for business and personal purchases Does not operate business in a consistent and continuous manner d) Helen runs a small cosmetics distribution business. Which of the following would disqualify her from using Schedule C-EZ? a) 71. b) c) d) Business expenses of less than $5,000 The taxpayer uses the accrual method of accounting The taxpayer had only one business as a sole proprietor There were no employees during the year