1. Karen owns a roof repair service and drives a van to local client sites. During the week she drives the following distances:

From her home to her business headquarters: 8 miles

From her headquarters to a client site: 15 miles

From client site back to her headquarters: 15 miles

Trip from her headquarters back home: 8 miles

How many miles does she count for business purposes?

Group of answer choices

8 miles.

15 miles.

30 miles.

46 miles.

1. Molly is a full-time engineer for Y-Corporation.On the weekends, Molly enters fishing competitions in order to earn cash prizes.Molly really enjoys the relaxation of fishing and being near the water.Molly made $5,200 in income and incurred the following expenses during the year for her fishing activities:

Contest Entrance Fees: $5,000

Property taxes on boat: $200

Fishing supplies: $1,000

Depreciation on equipment:$500

Which of the following statements isFALSEabout Molly's fishing activities?

Group of answer choices

Molly's income from her fishing activities is taxable, even though the fishing activities constitute a hobby.

Hobby losses are not allowed as a deduction.

Since hobby expenses are categorized as miscellaneous itemized deductions, they are currently disallowed as deductions.

1. Molly's hobby expenses are fully deductible.

Sally is self-employed as a consultant and she itemizes deductions every year. She has the following taxes during the year:

City of Denver Tax: $2,000

State Income Tax: $4,000

Federal Income Tax: $12,000

Self-Employment tax: $5,000

How much can she deduct for taxes paid for the year?

Group of answer choices

$6,000

$8,500

$11,000

$23,000

Clark is a self-employed freelance news reporter.The Globe News Corp. hires him as an independent contractor and sends him to Florida to cover a story at an amusement park.Clark decides to take his wife along since she has never been to the amusement park.Clark incurs the following travel expenses:

• Plane tickets: $1,000 each
• Hotel: $900 + $50 (for 2ndoccupant)
• Meals: $600

1. Clark spends 10 days on assignment for business purposes and 5 days sightseeing for his personal pleasure.How much can Clark deduct as business travel expenses?

Group of answer choices

$1,500

$1,700

$1,800

$2,000

1. Jessica is singe and owns Mountain Valley Tours as a sole proprietorship in 2020. During the year, Mountain Valley generates $110,000 of Qualified Business Income (QBI). Jessica's Adjusted Gross Income for the year 2020 is $150,000. Jessica has no income from interest, dividends, or capital gains. What is Jessica's QBI deduction for 2020?

Group of answer choices

$0.

$22,000.

$26,000.