72. Bob is the owner of a small business and had significant travel expenses this year to develop new clients. Which of the folowing would be invalid as a deductible travel a) Hotel stays during a business trip to meet a new client b) Tips paid to holel bellhop whie on the business trip to meet the new cient c) Taxi fares paid on the trip to meet the new cient d) Airfare to go on vacation after the trip to meet the new client 73. Bob also incurred expenses for both meals and entertainment on his business trips. To what extent are these expenses deductible? a) b) c) d) 100% 55% 50% 0% 74. John uses his car in his business and uses actual expenses to deduct his vehicle expenses The vehicle is used 78% for business and was placed into service in 2014 which of the following is the correct method of depreciation to use for the current tax year? a) MACRS for 7-year property b) Section 179 c) MACRS for 5-year property d) Depreciation is not alowed for this vehicle. 75. Jim pays many types of insurance for his business. Which of the folowing should be excluded as a business insurance premium Jim may be able to deduct on Schedule C? a) Malpractice insurance b) Casualty insurance, such as fire or theft c) Bond insurance d) Life insurance on the taxpayer 76. Enrique owns his business and is, therefore, an independent contractor. Which of the following is incorrectly listed as a favorable tax benefit to which he s entted with this status? a) He is not required to complete Form W-4 for individuals for whom he works b) He can itemize and deduct all business expenses, even if he does not itemize his personal expenses. c) His business expenses are not subject to the 2% limit that employee business expenses must exceed to be elig ble for a deduction. d) One who owns a business is responsible for both the employer and empioyee portions of employment taxes 77. David is a commission driver delivering bakery products and is, therefore, a statutory employee. Which of the following statements concerning statutory employees is incorrect? a) This category of taxpayers is very limited. b) The employer pays half of Social Security and Medicare taxes and the other half is withheld from the statutory employee's pay c) No federal income tax is withheld from the pay of a statutory employee d) Federal income tax is withheld from the pay of a statutory employee