NEED HELP WITH THESE TAX ACCOUNTING QUESTIONS. THEY ARE CPA STYLE PREP QUESTIONS

1) Which of the following do not qualify as deductible medical expenses?

I. Transportation to physician's office for required medical care

II. Payment for eyeglasses

III. Cost of nonprescription medicines taken for general health

IV. Health-club due

V. Payments

CHOICES:

A. III AND IV ONLY

B. II, III, AND IV ONLY

C. II AND III ONLY

D. I, III, AND V ONLY

2) A review of Bearing's Year 2 records disclosed the following tax information:

Wages = $18k

Taxable interest and qualifying dividends = $4k

Sch C trucking business net income = $32k

Rental (loss) from residential property = $-35k

Passive partnership (loss) = $-5k

Bearing actively participated in the rental property and was a passive partner in the partnership. Bearing had sufficient amounts at risk for the rental property and the partnership. What is Bearing's Year 2 adjusted gross income?

CHOICES

A 19k

B 29K

C 54k

D 14k

3) Round, Inc., a wheel manufacturer, purchased a new grinding machine in 2020 for $1,050,000. How much of the cost of this machine can Round expense using Section 179 in 2020 before computing MACRS depreciation

CHOICES:

A. 1,040,000

B 25K

C 1,050,000

D 0

4) Cliff, a single taxpayer having a $25,000 AGI, is very active in his church. On December 31 of the current year, he donated to the church clothing in good conditions with a fair market value of $150 that he had purchased many years ago for $400. At the same time, he contributed stock with a fair market value of $1,000 that he had purchased 2 months earlier for $400. What amount can Cliff include as an itemized charitable contribution deduction on his current-year return?

CHOICES

A 1,400

B 550

C 800

D 1,150

5) Daffy is a janitor at ABC Company. He lent the company $10,000 but was unable to collect it because the company went bankrupt a year after the loan was made. Daffy did not own any stock in the company, and the loan was not a condition of employment. How should Daffy report this loss?

CHOICES

A Long term Capital Loss

B Short term Capital Loss

C Business Bad Debt

D Nondeductible Loss