Question 1.

With respect to choosing a fiscal year for a small business, what is the business form that offers the greatest number of options with respect to the fiscal year?

a-The corporation C. b- The corporation S. c-The societies d-Limited responsibility society

Question 2 On June 1 of the current year, Peter converted a machine into rental property. At the time of conversion, the machine was worth $ 90,000. Five years ago, Peter bought the machine for $ 120,000. The machine is still overloaded by a $ 50,000 mortgage. What is the basis of the machine for cost recovery? a) $ 70,000. b) $ 90,000. c)$ 140,000.

Question 3

Sharon's car slid into a ditch. A stranger took it out. Sharon offered to pay $ 25.00, but the stranger refused. Sharon slipped the $ 25.00 into the stranger's truck when he was not looking. a) The $ 25.00 is a non-taxable gift received by the stranger because Sharon was not legally obligated to pay him.

b) The $ 25.00 is taxable compensation for the services rendered. c) The $ 25.00 is a non-taxable service award.