I NEED HELP WITH THESE TAX ACCOUNTING QUESTIONS (CPA PREP QUESTION

1) John and Norma Hamilton are cash basis taxpayers. During the current year, they paid the following taxes:

State gift taxes = $650

State motor vehicles tax on value of automobile = $250

State income tax = $400

Estimated state income tax = $900

State inheritance tax = $350

What amount can the Hamilton's claim as an itemized deduction on their current-year federal tax return?

A 1,650

B 1,300

C 1,550

D 2,550

2) A taxpayer purchased 5 acres of land for $20k and placed in service other tangible business assets that cost $993,000. Disregarding business income limitations, what maximum amount of Section 179 expense can the taxpayer claim this year?

A. $20,000

B. $993,000

C. $1,040,000

D. $1,013,000

3) During the current year, Gerry Shrewd incurred $30k of interest expense on funds borrowed to acquire stocks and bonds. Shrewd had net investment income of $15,000 from these investments in the current year. How much investment interest can Shrewd deduct in the current year?

A 30k

B 0

C 25K

D 15k

4) Which of the following is considered trade or business income for the purpose of determining the employee's net operating loss?

A interest income from savings

B Gain on sale of a capital asset

C Dividends on stock

D Salary from part-time employment

5) During the current year, Sally sold her interest in two small business corporations qualifying as Sec 1244 stock. Sally realized a $35,000 loss on her X Corporations small business stock and a $20k loss on her Y Corporation small business stock. Sally files her tax return as a single individual. What are the amount and the character of Sally's loss to be reported in the current year?

A ordinary loss = 5k, capital loss of 50k

B ordinary loss of 0, capital loss of 55k

C ordinary loss of 50k, capital loss of 5k

D ordinary loss of 55k, capital loss of 0