Question 18 Edward owns Fullmetal, Inc. which has the following items in 2020 Taxable income (including all deductions) Interest Expense Rent Expense Depreciation Expense Average Annual Gross Receipts $10,000 $1,000,000 $15,000 $20,00 $20,000,000 How much, if any, of Fullmetal's interest is deductible? $303,600 Oa $302,100 None of these Od $308,100 e $1,000,000 Question 18 Edward owns Fullmetal, Inc. which has the following items in 2020 Taxable income (including all deductions) Interest Expense Rent Expense Depreciation Expense Average Annual Gross Receipts $10,000 $1,000,000 $15,000 $20,00 $20,000,000 How much, if any, of Fullmetal's interest is deductible? $303,600 Oa $302,100 None of these Od $308,100 e $1,000,000 3. poms Question 13 Gabby Corp created a patent in 2015 and began amortizing it that year. 3 years later, Sookie Corp bought the rights to the patent. Assuming patents have a legal life of 7 years, how long does Sookie Corp amortize the patent? a 4 years Ob 12 years 15 years None of these 7 years >> Question 14 Hammy is the owner of Squirrel Co., which has the following transactions in 2020: Sold land on 7/1 for $250,000; in-service 5/1/15, cost $110,000 Disposed computer equipment 10/29 for $0, in-service 12/1/15, cost $75,000, A/D $65,000 Sold furniture 3/1 for $5000; in service 2/25/14, cost $20,000, A/D $18,000 What is Squirrel Co's gain or loss, and what kind? $0 51231 gain: $143,000 51245 gain $130,000 $1231; $3000 61245 gain Ob None of these oc Od $133,000 $1231 gain; $0 $1245 gain $140,000 $1231 gain; $300041245 gain Hostinni will this Tronse 3.5 pc Question 15 R has the following expenses in 2020: Medical Expenses State Taxes Real Estate Taxes Cash Charitable Contributions Mortgage Interest Continuing education costs Employer didn't pay for Gambling losses $10,000 $7000 $8000 $500 $6500 $300 $1000 Ri's mortgage was to buy his house and had a principal amount of $600,000. RJ files single and his 2020 AGI is $95,000, including $750 of gambling winnings. How much are Ri's itemized deductions in 2020? None of these ob. $20,725 $21,725 $21.025 $20,975 e Question 10 3.5 points Save Answer Julie owns an oil field and uses cost depletion. On 1/1/20, her engineers estimate there are 300,000 barrels remaining in the reservoir. In 2020, Julie extracts 100,000 barrels and sells 80,000. Her basis in the field at 1/1/20 was $10,500,000. What is Julie's basis at 12/31/20? $2,100,000 b. $7,700,000 Oa c $7,000,000 None of these $2,800,000 >> 6:5 APM 8/12/2020 ASUS VivoBook Question 8 3.5 points Save Answer Shaun and Troy are married and file a joint return. In 2020, Troy pays $6000 of interest, made of $4000 on his student loans and $2000 on his car loan. Shaun & Troy's modified AG for 2020 is $150,000. How much interest can they deduct in 20207 None of these Oa $2000 Ob. c $833 $1333 e 50 Question 7 Anthony and Judy are married with a daughter, Jessica, attending college. Their AG for 2020 is $175,000. Jessica is in her 3rd student. Her costs for the year were $3000 in tuition, $6000 in room and board, and $500 in textbooks and supplies year at college and a full-time Anthony is also working towards his Master's Degree, paying $10,000 in tuition. How much American Opportunity credit can Anthony and Judy take? $1250 b. $1219 Oo. $594 d. 5625 None of those