income tax questions

Question 7 of 75. A sole proprietorship that began business May 1, 2018, incurred $9,000 of startup expenses. If the business elects to report the maximum amount of startup costs as a current expense, what is the amortization amount reported as an "other expense" on Schedule C? $88 $134 $178 $266 Mark for follow up Question 8 of 75. In 2018, Tyler decided he needed to be a healthier person. To help achieve that goal, he tried to grow all of his own vegetables organically. The garden did not grow well, and Tyler was only able to harvest about half the vegetables. Which of the following is most accurate? O Tyler should definitely deduct the cost of his gardening as a business expense. Tyler cannot deduct any of his expenses. Tyler needs to set up a corporation for his food-growing, then it will qualify as a business. O Tyler can deduct half his expenses because he was able to harvest about half the vegetables. Question 5 of 75. Larry uses an accrual method of accounting and a calendar year. On December 30, 2017, he completed work for a client and submitted his bill. The client had no dispute with the work done or the amount of the bill. The client paid Larry's bill in 2018. In which year should he report the income from this project? He should report the income in 2018. He may choose to report the income in either 2017 or 2018. He should report the income in 2017. He should report half of the income in 2018 and half in 2019. Mark for follow up Question 6 of 75. Peyton is a self-employed certified financial planner and began his business in 2018. During 2018, he purchased a $500 computer and a $250 desk. He also paid $6,000 in legal/incorporation fees and spent $12,000 for a new roof for the office building he owns. Which purchase(s) can he expense in 2018 without limitation? Computer, desk, legalincorporation fees, roof. Computer, desk, legal/incorporation fees. Computer and desk. cornor fees roof Question 2 of 75. Clarence is a sole proprietor who started his business on July 29, 2017. He has not elected any particular tax year, Generally, when is Clarence's federal income tax return due? April 15. June 15. August 15. December 15. Mark for follow up Question 3 of 75. Fill in the blank. Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over months. 240 180 120 60 OMark for follow up Sole Proprietorships Question 1 of 75. Ethan uses the cash method of accounting and a calendar year. He received the following payments from clients: A check from Client #1 in the amount of $1,091 on December 26, 2018, deposited January 15, 2019. A check from Client #2 on December 22, 2018, for $592, deposited December 24, 2018. An electronic payment of $1,968 from Client #3, made and deposited on January 2, 2019, for services rendered on December 16, 2018. Cash in the amount of $292, received December 9, 2018, from Client #4, which he forgot to deposit until January 12, 2019. When should Ethan report this income? Ethan should apportion the income equally between 2018 and 2019. Ethan should report the income in either 2018 or 2019, whichever minimizes his tax liability. O Ethan should report the income in whichever year will allow his client to claim the largest deduction for the expense. Ethan should report $1,975 in 2018. The remaining $1,968 should be reported on his 2019 tax return. Mark for follow up Question 2 of 75