Federal Tax Multiple Choice

Chapter 9, 10, and, 11

nights lodging Ater the course, Danny spent the lst day sighning Duting the Danny also paid $140 a day for meals, and $80 a day for a ental car Deine the amount of these travel expenditures Danny may deduct as business expenses a $3,500 b $3,080 12 Desi operates a proprietorship selling automobile parts to epair shops In 2018 D reported $100 million in revenue and incurned the folowing expe $40 milion a 2018 b. 59 million 59.6 million 13. BIl operates a landscaping service asa propretorsho ang he accrual metho accounting in November of 2016. B tt $24 000 contract with the City d Sprngfeld to provide servees at park tho 24 mots nming Deamer 2018 trough November 2020. On Decente 23* df 201,Beueves a dheck for the entire local mechanic for $100 par manth On December 31 of 2018 B ives a check from the mechanic in the amount of $200 for January 2010 and Febrary 2019et Assuming Bil wishes to maimize delea, determie the amount B must include in income for 2019 d $12.200 b$23,000 G $23,200 14, Pue an operates a constrg barns ante aco metod 15December 2018, Punam pad $18,000 for business insurance that provides coverage trom 1 February 2019 through 31 January 2020 Determine the amourt Punam is entled to deduct in 2018 a $o b $1,500 $16.500 $18,000 11. Danny owns an electronics outlet in Dallas This year he paid $800 to register for a four- day course in in nights lodging. After the course, Danny spent the last day sightseeing During the trip Danny also paid $140 a day for meals, and $80 a day for a rental car. Determine the amount of these travel expenditures Danny may deduct as business expenses a. $3.500 b. $3,080 management in Chicago. Danny paid $800 in aifare and $1,000 for fus C. $2,800 d $2,640 12. Desi operates a proprietorship selling automobile parts to repair shops. In 2018, Desi reported $100 million in revenue and incurred the following expenses: $40 million is coGS, $18 million in commissions, $10 million in business interest expense, and $12 million in depreciation. Determine the amount of business interest Desi may deduct in 2018. a. $6 million b. $9 million c. $9.6 million d. $12.6 million 13. Bill operates a landscaping service as a proprietorship using the accrual method of accounting. In November of 2018, Bill negotiates a $24,000 contract with the City of Springfield to provide services at the city park for the 24 months running December 2018 through November 2020. On December 23'd of 2018, Bill receives a check for the entire $24,000. In additional Bill's landscaping service rents storage space in its garage to a local mechanic for $100 per month. On December 31s of 2018, Bill receives a check from the mechanic in the amount of $200 for January 2019 and February 2019 rent. Assuming Bill wishes to maximize deferral, determine the amount Bill must include irn income for 2019. a. $24,000 b. $23,000 c. $23,200 d. $12,200 e. $12,000 14. Puman operates a consulting business on the accrual method. On 15 December 2018, Punam paid $18,000 for business insurance that provides coverage from 1 February 2019 through 31 January 2020. Determine the amount Punam is entitled to deduct in 2018. a. $0 b. $1,500 c. $16,500 d. $18,000