i need help with the attached question below, kindly help me within 2 hours.

Owning a business and not materially participating Having rental condos Owning a limited partnership interest in a real estate limited partnership Owning a working interest in oil and gas properties Question 2. 2. (TCO D) What IRC section dictates the like-kind exchange provisions? (Points : 5) 1231 1131 1031 401(K) Question 3. 3. (TCO B) A business machine valued at $800 was contributed to a charitable organization during the year. The machine cost $1,000 but was depreciated down to $600 before the donation was made. Indicate the correct income tax treatment with respect to the donation. (Points : 5) Contribution of $600 (no income recognized) Contribution of $1,000 (income of $200 recognized) Contribution of $800 (income of $200 recognized) Contribution of $800 (no income recognized) Question 4. 4. (TCO A) Miscellaneous itemized deductions are deductible only _____. (Points : 5) to the extent that in aggregate, they exceed 2% of AGI if the taxpayer takes the standard deduction if they fall below the limit on standard itemized deductions None of the above Question 5. 5. (TCO F) Which of the following is not an ordinary and necessary expense of a landscaper? (Points : 5) New ring for his wife Mileage Gasoline Garbage bags Question 6. 6. (TCO E) Josh sold a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Josh received $90,000 cash and a painting with a fair-market value of $20,000 from the buyer. The buyer also assumed Josh's $25,000 loan on the equipment. Josh paid $5,000 in selling expenses. What is the amount of Josh's gain on the sale? (Points : 5) $90,000 $135,000 $75,000 $80,000 Question 7. 7. (TCO I) Under the cash method of tax accounting, income is generally recognized when _____. (Points : 5) cash is received the liability arises there is net income to absorb the expense revenue is earned Question 8. 8. (TCO D) Tom Smith had a short-term capital loss of $3,000 in 2016, a short-term capital gain of $1,900, a short-term capital loss carryover from 2015 of $700, a long-term capital gain of $1,800, and a long-term capital loss of $1,000. What is Tom's deductible loss in 2016? (Points : 5) $1,000 $1,800 $2,000 $3,000 Question 9. 9. (TCO A) Which of the following is not permitted to practice before the IRS? (Points : 5) Attorney CPA Bookkeeping service Enrolled agent Question 10. 10. (TCO F) To be deductible for tax purposes, a trade or business expenditure must be _____. (Points : 5) ordinary. necessary. ordinary and necessary. ordinary or necessary. Page 2 Question 1. 1. (TCO A) The art of using existing tax laws to pay the least amount of tax legally possible is known as _____. (Points : 5) tax evasion tax avoidance tax elusion None of the above Question 2. 2. (TCO C) Which of the following items is not subject to federal income tax? (Points : 5) The interest on U.S. Treasury bonds Gambling winnings The interest on loans made in the ordinary course of business The discharge of debt through bankruptcy Question 3. 3. (TCO B) Mark Mayer, a cash-basis taxpayer, leased property on June 1, 2016 to Perry Purly at $325 a month. Perry paid Mark $325 as a security deposit, which will be returned at the end of the lease. In addition, Perry paid $650 in advance rent, which is to be applied as rent to the last 2 months in the lease term. The lease is to run for a 2-year period. What is Mark's rental income for 2016? (Points : 5) $1,950 $2,275 $2,600 $2,925 Question 4. 4. (TCO G) All of the following income items are includible in an employee's gross income except _____. (Points : 5) severance pay for the cancellation of employment vacation allowance payments from the employer while sick a medical insurance premium paid by the employer for the employee and his or her spouse Question 5. 5. (TCO F) Hobby expenditures are deductible to the extent of _____. (Points : 5) total individual gross income hobby gross income trade or business gross income nonbusiness gross income Question 6. 6. (TCO C) Jim is operating his business as a single-member LLC. He desires to be taxed as a corporation. What does he need to do? (Points : 5) Write to the Department of State where the LLC was created File Form 2553 File Form 8832 Add one other member Question 7. 7. (TCO F) Debbie is a 25% owner in McMotors Inc., an S corporation. McMotors Inc. had the following results from operations in 2016: Ordinary business income of $60,000, charitable contributions of $4,000, and an IRC 179 deduction of $6,000. Debbie received a salary from McMotors of $125,000 in 2016. How much income will result on Debbie's Schedule E of her Form 1040? (Points : 5) $15,000 $60,000 $28,000 $13,500 Page 3 Question 1. 1. (TCO E) Sandy Smith files a return as head of a household. Items of income received by Sandy in 2016 were as follows. Interest on savings account with Wells Fargo: $500 Interest on state income tax refund: $50 Gambling winnings: $1,000 Dividends from mutual life insurance company on life insurance policy: $1,000 Dividends declared in 2015 from Better Auto Co. received on January 2, 2016: $875 The total dividends received on the life insurance policy do not exceed the aggregate of the premiums paid to the company. (a) How much should Sandy include in her 2016 taxable income as interest? (b) How much should Sandy report as dividend income for 2016? (c) How much should Sandy include in taxable other income for her state lottery winnings? (Points : 15) Question 2. 2. (TCO F) Describe how the exclusion on a sale of residence can be prorated. (Points : 15) Question 3. 3. (TCO G) Would any of the following items be deductible on an individual's income tax return? If so, would the item be deductible for or from AGI? Explain each item. (a) Hobby expenditures of $2,000 in excess of hobby gross income (b) $3,000 loss on the sale of a personal sailboat (c) Interest of $8,000 on money borrowed to purchase tax-exempt securities (Points : 15) Question 4. 4. (TCO I) Rick, a single individual with a salary of $45,000, incurred and paid the following expenses during the year. Student loan interest: $800 Medical expenses: $5,000 Alimony: $11,000 Mortgage interest on personal residence: $3,000 State income taxes: $4,000 Moving expenses: $1,500 Contribution to a traditional IRA: $2,000 Analyze the above expenses and determine which ones are deductible for AGI. Please support your position. (Points : 15) Question 5. 5. (TCO I) A review of Bradley's Year 2 records disclosed the following tax information. Wages Taxable interest and qualifying $18,000 4,000 dividends Schedule C trucking business net income Rental (loss) from residential property Limited partnership (loss) 32,000 (35,000) (5,000) Bradley actively participated in the rental property and was a limited partner in the partnership. Bradley had sufficient amounts at risk for the rental property and the partnership. What is Bradley's Year 2 adjusted gross income? (Points : 15) Page 4 Question 1. 1. (TCO F) Smith has an adjusted gross income (AGI) of $130,000 without taking into consideration $40,000 of losses from rental real estate activities. Smith actively participates in the rental real estate activities. What amount of the rental losses may Smith deduct in determining taxable income? (Points : 15) Question 2. 2. (TCO B) For the year ended December 31, Year 6, Taylor Corp. had a net operating loss of $200,000. Taxable income for the earlier years of corporate existence, computed without reference to the net operating loss, was as follows. Taxable Income: Year 1 $5,000 Year 2 10,000 Year 3 20,000 Year 4 30,000 Year 5 40,000 What amount of net operating loss will be available to Taylor for the year ended December 31, Year 7? (Points : 15) Question 3. 3. (TCO F) Sara Inc. is a calendar-year S corporation with four shareholders who each own 25 shares of stock. All shareholders purchased their stock for $5,000. Mr. D, one of the shareholders, made loans to the corporation of $7,000 and $6,000 on August 1, 2015, and June 15, 2016, respectively. Mr. D also guaranteed Sara's $20,000 bank loan of $20,000. Sara Inc. had $9,000 ordinary income on December 31, 2015. Both shareholders reported their share of the corporation's income on their individual returns for 2015. For 2016, Sara Inc. reported an ordinary loss of $5,000. No distributions were made in 2015 or 2016 by the corporation. What is the adjusted basis of Mr. D's stock on December 31, 2016? If an item does not contribute to basis, please explain. (Points : 20) Question 4. 4. (TCO G) Leslie Ann owned an interest in several limited partnerships in 2016. Gains and losses passed through to Leslie are as follows. Partnership Date Acquired Allocated Gain (Loss) O&G1 3/26/84 $12,000 O&G2 5/19/86 (30,000) O&G3 11/13/88 ( 5,000) O&G4 1/08/89 ( 6,000) O&G5 7/11/90 20,000 (a) What is Leslie's net passive loss for 2016? (b) How much of the loss may be deducted against active and portfolio income? (c) How much of the loss is a suspended loss? (Points : 20) Question 5. 5. (TCO G) Frank Harold is a sole proprietor running an advertising agency with two employees, Helen and Carolyn. Frank decides to relocate his business from New Wilmington to Ellwood City, and Helen and Carolyn agree to relocate as well. All three decide to move their families to Ellwood City. Frank agreed to reimburse Helen and Carolyn for their moving expenses. (a) Carolyn's old residence was 13 miles from the old job location, and the new job location is 71 miles from her old residence. Once in Ellwood City, Carolyn works full-time for the next 2 years. What are the federal income tax consequences for Carolyn and Frank regarding the reimbursement of Carolyn's moving expenses? (b) Helen's old residence was 8 miles from the old job location, and the new job location is 60 miles from her old residence. Once in Ellwood City, Helen works full-time for the first 52 weeks, but she works only part-time after that. What are the federal income tax consequences for Helen and Frank regarding the reimbursement of Helen's moving expenses? (c) Frank's old residence was 10 miles from the old job location, and the new job location is 75 miles from his old residence. Once in Ellwood City, Frank works full-time for the next 52 weeks; however, he only works full-time 20 of the following 52 weeks. What are the federal income tax consequences to Frank regarding his qualified moving expenses? (Points : 20)