Question 2501 pts

In 2021, Gary's business had a tentative minimum tax of $30,000, and a net regular tax liability of $40,000. What is the greatest amount of General Business Credit that Gary's business can claim in 2021 on his Federal Income Tax Return?

Group of answer choices

$0

$40,000

$30,000

$10,000

Flag question: Question 251

Question 2511 pts

Scott invested in stocks based in countries outside of the United States. As a result of those investments, in 2021, Scott paid $100 of income tax to foreign countries. Which of the following is true in regards to the $100 paid by Scott on his Federal Income Tax Return?

Group of answer choices

Scott does not recognize a deduction or credit for the $100.

Scott can claim a Foreign Tax Credit of $100

Scott can claim a miscellaneous itemized deduction for $100.

Scott can reduce his foreign earned income by $100

Flag question: Question 252

Question 2521 pts

In 2021, Joel hired Elmer, an individual whose wages qualified Joel to claim the Work Opportunity Tax Credit. In 2021, Joel paid this individual $10,000, and this individual worked for Joel 1000 hours in 2021. In 2021, how much of a Work Opportunity Tax Credit can Joel claim for the wages that were paid to Elmer on Joel's Federal Income Tax Return?

Group of answer choices

$2,400

$0

$4,000

$10,000

Flag question: Question 253

Question 2531 pts

In 2021, Danielle's company spent $100,000 on qualified research expenditures. In 2021, Danielle's company's base amount for qualified research expenditures was $80,000. In 2021, Danielle's company can claim what amount of Research Activities Credit on her Federal Income Tax Return?

Group of answer choices

$20,000

$4,000

$0

$100,000

Flag question: Question 254

Question 2541 pts

In 2021, Jennie's filing status was single. In 2021, her Adjusted Gross Income was $50,000. She has no dependents. In 2021, how much of a Recovery Rebate Credit can be claimed by Jennie on her Federal Income Tax Return?

Group of answer choices

$0

$600

$1,200

$1,400

Flag question: Question 255

Question 2551 pts

In 2021, Michael spent $40,000 to buy an electric vehicle. The electric vehicle qualified for the maximum allowed amount of Plug-In Electric Vehicle Credit. Michael can claim a Plug-In Electric Vehicle Credit of what amount on his 2021 Federal Income Tax Return.

Group of answer choices

$40,000

$7,500

$0

$20,000

Flag question: Question 256

Question 2561 pts

Andrea bought a rental property on 6/1/2021. She paid the following amounts for the rental property:

$200,000 cost of house $5,000 escrow fees associated with purchase of the house $1,000 home inspection fee associated with purchase of the house $2,000 real estate agent commission fee associated with purchase of the house

What is her basis in the rental property?

Group of answer choices

$200,000

$205,000

$208,000

$206,000

Flag question: Question 257

Question 2571 pts

Emily purchased a rental house on 6/1/2015 for $150,000. She sold the rental house on 12/31/2021. Through 12/31/2021, she has taken $30,000 in depreciation expenses on the rental house. On 6/1/2018, she installed a new swimming pool in the rental house for $25,000.

What is Emily's adjusted basis in the rental house on 12/31/2021 prior to the sale?

Group of answer choices

$145,000

$150,000

$120,000

$175,000

Flag question: Question 258

Question 2581 pts

Greg purchased a vehicle used 100% for his business on 1/1/2018. He paid $40,000 for the vehicle, and an addition $5,000 to paint and outfit the vehicle before it could be used in his business. Through 12/31/2021, he has taken $25,000 in depreciation on the vehicle. What is the adjusted basis of the vehicle on 12/31/2021?

Group of answer choices

$40,000

$20,000

$45,000

$15,000

Flag question: Question 259

Question 2591 pts

Jermaine purchased a vehicle used 100% for his business on 1/1/2018. He paid $50,000 for the vehicle. On 6/1/2021, the vehicle was involved in an accident. The accident reduced the value of the vehicle and caused a casualty loss of $5,000. The vehicle was not insured, and Jermaine did not receive any other insurance money for the accident. Through 12/31/2021, Jermaine took $30,000 of depreciation on the vehicle. What is the adjusted basis of the vehicle on 12/31/2021?

Group of answer choices

$15,000

$20,000

$45,000

$0

Flag question: Question 260

Question 2601 pts

Gregory purchased a rental house on 1/1/2018. He purchased it for $250,000. In 2021, Gregory spent $2,000 to repair various items in the rental house. In 2021, he also installed a new swimming pool at the rental house, for $35,000. Through 12/31/2021, Gregory took $25,000 in depreciation on the rental house. On 12/31/2021, what is the adjusted basis of the rental house?

Group of answer choices

$250,000

$223,000

$260,000

$258,000

Flag question: Question 261

Question 2611 pts

David gave Maria, his daughter, a house on 6/1/2021. David had used the house as his personal residence since he purchased the house on 1/1/1980, for $50,000. On 6/1/2021, the fair market value of the house was $750,000. What is Maria's basis in the house?

Group of answer choices

$750,000

$50,000

$0

$700,000

Flag question: Question 262

Question 2621 pts

David passed away on 6/1/2021. Maria, David's daughter, inherited David's house on 6/1/2021. David bought the house on 1/1/1980 for $50,000. On 6/1/2021, the fair market value of the house was $750,000. The alternative valuation method was not used in the valuation of David's estate. What is Maria's basis in the house?

Group of answer choices

$750,000

$50,000

$0

$700,000

Flag question: Question 263

Question 2631 pts

Elaine sold a house, and received $500,000 in cash. At the time of the house sale, there was a $50,000 mortgage on the house. As part of the house purchase, the new buyer took over the $50,000 mortgage, and was now responsible for paying off the $50,000 mortgage. In connection with the house sale, Elaine paid a real estate agent $30,000 in sales commission. How much did Elaine realize from the sale of her house?

Group of answer choices

$500,000

$470,000

$520,000

$550,000

Flag question: Question 264

Question 2641 pts

Martha purchased her principal residence on 1/1/1990 for $50,000. She sold her principal residence on 6/1/2021 for $350,000. She had lived in the same house from 1/1/1990 through 6/1/2021. Per Internal Revenue Code Section 121, how much of a gain can Martha exclude from the sale of her principal residence?

Group of answer choices

$250,000

$0

$300000

$350,000

Flag question: Question 265

Question 2651 pts

On 6/1/2021, Rebecca sold a rental house in a transaction that qualified for Internal Revenue Code Section 1031 Like-Kind Exchange treatment. Rebecca bought the rental house on 3/1/2001 for $200,000. On 6/1/2021, Rebecca's adjusted basis in the rental house that she sold was $125,000. Rebecca sold the rental house for $600,000, and did not receive any boot in the transaction. Rebecca bought a new rental house pursuant to the like-kind exchange for $600,000 on 8/1/2021. What is Rebecca's basis in the rental house that she bought on 8/1/2021?

Group of answer choices

$475,000

$600,000

$200,000

$125,000

Flag question: Question 266

Question 2661 pts

John and Marie purchased their principal residence on 6/1/2005 for $200,000. They lived in the same house until they sold it on 8/1/2021 for $800,000. John and Marie filing status was Married Filing Joint in 2021. Per Internal Revenue Code Section 121, how much of a gain can John and Marie exclude from the sale of their principal residence?

Group of answer choices

$0

$500,000

$600,000

$200,000

Flag question: Question 267

Question 2671 pts

Mimi purchased one share of Apple stock on 1/15/2020 for $10. She sold the same share of Apple stock on 1/15/2021 for $25. Which of the following is true?

Group of answer choices

She has a long term capital gain of $15.

She has a short term capital gain of $15.

She has a long term capital gain of $25.

She has a short term capital gain of $25.

Flag question: Question 268

Question 2681 pts

Which of the following items is a capital asset?

Group of answer choices

Account receivable

Principle residence of a taxpayer

Inventory held primarily for sale to customers

Supplies used in a business