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Part I: Multiple Choice Section- 35 questions 2 points each - The parpose of this part of the teat is to assess your tax skills,

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Part I: Multiple Choice Section- 35 questions 2 points each - The parpose of this part of the teat is to assess your tax skills, review your knowledge of tax vocabulary, and to analyze gour ahility to solve client problems. 1. Your client Amy is a Schedule C sole proprietor with a business which prints signs, has decided to take her major elient out to lunch to try and convince him to increase the number of signs he purchases. All of the following statements conceming the lunch are correct, except; a. Amy can deduct tickets to the theatre if she takes him out to entertain him affer the meal. b. Amy can nomally deduct only 50% of the meal c. Amy passes the "directly related to" test. d. Amy must be present at the meal to get a deduction. 2. Which of the following statements correctly defines the transportation deduction? a. Travel from the client's office at their main job to a temporary worksite is deductible if it is not reimbursed by the employer. b. The commute to work from a client's home is deductible. c. The commute to a second job from the client's home is deductible. d. The client will be able to add together both the automatic mileage method and actual cost method to determine how much they can take. 3. Which of the following statements about education expenses is (are) correct? I. They are deductible if they are paid to meet the minimal education requirements of the job. II. They are deductible if they are paid to qualify the elient for a new trade or business a. I only b. II only c. Both I and II d. Neither I nor II 4. Your elient Barbara has the following medical expenses. She pays $2,000 in medical premiums for insurance. She pays $1,000 in deductibles for her medicines. She pays $2,000 for dental work. How much of her medical expenses are deductible on Schedule A if she has an adjusted gross income of $100,000 ? a. $5,000 b. $4,500 e. $0 d. None of the above

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