7)

Fill in the blank

Bree and Tom are married and file a joint return for 2021. During the year, Bree, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Tom used the same amount.

Bree and Tom also used $850 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline.

Tom is employed at State University as an accounting clerk. Under a tuition reduction plan, Tom saved $4,000 in tuition fees during 2021. He is studying for a masters degree in business at night while still working full-time.

Tom also had $30 worth of personal typing done by his administrative assistant at the University.

What is the amount of fringe benefits that should be included in Bree and Toms gross income on their 2020 tax return? Here is an example of what your answer should look like: $2,375

8)

True of False?

Jon received a gold watch worth $660 for 25 years of service to his accounting firm (not a qualified award).

the amount of gross income that must be included on the taxpayers 2021 income tax return is $0

Group of answer choices

True

False

9)

Fill in the blank

Candance owns a small candy store that sells one type of candy. Her beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and she made the following purchases of candy during the year:

March 1	10,000 boxes at $1.60	$16,000
August 15	20,000 boxes at $1.70	34,000
November 20	10,000 boxes at $1.80	18,000

At the end of the year, Candances inventory consisted of 15,000 boxes of candy.

Her Sales for the year is $53,500.

What is her cost of ending inventory of goods using the FIFO inventory valuation method?

Here is an example of how your answer should look: $13,69

10)

Multiple Choice

Which of the following would be a business bad debt if it were uncollectible?

a) A taxpayer loans his father $10,000 to start a business

b) A tax payer loans his son $1,000 to purchase a rental house.

c) A dentist, using the accrual basis of accounting, records income when it is earned and extends credit to a patient for services provided.

d) None of these answers is correct

Group of answer choices

a

C

d

b