QUESTION 11

A participant, who is age 40, in a 401(k) plan may contribute up to what amount in 2022?

	a.	$20,500
	b.	$17,000
	c.	$26,000
	d.	$19,500

1 points

QUESTION 12

Which of the following statements is correct in connection with the investigation of a business?

	a.	That business must be related to the taxpayers present business for any expense ever to be deductible
	b.	Regardless of whether the taxpayer is already engaged in the trade or business, the expenses must be capitalized and amortized.
	c.	If the taxpayer is not already engaged in the trade or business, the expenses incurred are deductible if the project is abandoned.
	d.	Expenses may be deducted immediately by a taxpayer engaged in a similar trade or business regardless of whether the business being investigated is acquired.

1 points

QUESTION 13

John takes out a life insurance policy on his life naming his wife, Mary, as the beneficiary, in the amount of $100,000. On John's death, Mary is paid $100,000 by the insurance company. Mary's taxable income from the receipt of the life insurance proceeds is:

	a.	$100,000
	b.	1/2 of the amount received (i.e., $50,000)
	c.	$0
	d.	$100,000 reduced by the total of the premiums John had paid during his life

1 points

QUESTION 14

A non-business bad debt is

	a.	always treated as an ordinary loss
	b.	none of the choices is correct
	c.	always treated as a short-term capital loss
	d.	treated as either a short-term or long-term capital loss, depending on the holding period of the debt

1 points

QUESTION 15

Sally is a CPA who is an employee of ABC Co. Sally pays $150 for a CPE class in 2021. Which of the following is correct?

	a.	Sally cannot deduct anything for this expense on her tax return under current law.
	b.	Sally can deduct only $75 (50% of $150).
	c.	Sally can deduct $150 as a miscellaneous itemized deduction subject to a 2% of AGI floor.
	d.	Sally can deduct $150 as an above-the-line deduction on her 2021 tax return as a job-related education expense.