1. Corey is the city sales manager for “RIBS,” a national fast-food franchise. Every working day, Corey drives his car as follows:

                                                Miles

Home to office                           20

Office to RIBS No. 1                 15

RIBS No. 1 to No. 2                    8

RIBS No. 2 to No. 3                    3

RIBS No. 3 to office                  10

Office to home                           20

Corey’s deductible daily mileage is:

a.         0 miles.

b.         36 miles.

c.         46 miles.

d.         56 miles.

e.         76 miles.

2.         Which of the following trips, if any, will qualify for the travel expense deduction?

a.         Dr. Jones, a general dentist, attends a two-day seminar on financial planning.

b.         Dr. Brown, an undergraduate pre-med student, attends a two-day seminar on developing a medical practice.

c.         Paul, a romance language high school teacher, spends summer break in France, Portugal, and Spain improving his language skills.

d.         Myrna went on a two-week vacation in Boston. While there, she visited her employer’s home office to have lunch with former co-workers.

e.         Mary, a CPA, attends a three-day seminar on state income taxation.

3.         Tax advantages of being self-employed (rather than being an employee) include:

a.         The self-employment tax is always lower than the Social Security tax.

b.         The overall limitation (50%) on meals does not apply.

c.         An office in the home deduction from AGI is available without having to meet the “convenience of the employer” test.

d.         Job-related expenses are deductions for AGI.

e.         Both (c) and (d) are advantages.

4.         When using the automatic mileage method, which of the following expenses, if any, also can be claimed?

a. Engine tune-up.

b. Parking.

c. Interest in the automobile loan.

d. MACRS depreciation.

e. None of these.