In a Clergy return, offerings and feesfor marriages, funerals, and baptisms are:

A. Exempt from income

B. Included in income

C. Reported on Form 2106*

D. Reported on the CLGY screen in Drake Software

Part III of Schedule C is Cost of Goods Sold. What is the Cost of Goods Sold if:

Beginning Inventory = $200,000

Net Purchases = $150,000

Ending inventory = $75,000

A. $25,000

B. $175,000

C. $275,000*

D. $375,000

Information entered on which of the following forms flows to the Schedule C?

A. Form 8829, Business Use of your home

B. Schedule E, Supplemental Income and Loss

C. Form 2106, Employee Business expenses*

D. Schedule D, Capital Gains and Losses

The double-declining balance method of depreciation is used for:

A. AMT depreciation of personal property

B. Regular depreciation of personal property

C. Regular depreciation of real property

D. AMT depreciation of real property

Which of the following is an example of an increase to basis which results in an adjusted basis?

A. Section 179 expense*

B. Insurance reimbursement

C. Theft loss deduction

D. Paving a parking lot

Edward and Jane incurred $30,000 in medical expense this year. Edward's income was $40,000 from W2 income.Jane is disabled and cannot work. If Edward and Jane are over the age of 65 and take the itemized deduction how much medical expense are they allowed to deduct on schedule A? Medical expenses that exceed what percentage of AGI are deductible on Schedule A in 2020?

A. 8.5% -$3,400

B. 7.5% -$3,000*

C. 605% - $2,600

D. 5.5% - $2,200 35