Question 28

2.5 Points

Which of the following would be considered an improvement rather than a routine maintenance?

A. Wiper blade replacement.

B. Air filter change.

C. Oil change.

D. Engine overhaul.

Question 29

2.5 Points

Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits. Each employee is allowed $6,000 in benefits. For 2018, Tanya selected $3,360 ($280 per month) of parking, $1,840 in 401(k) contributions, and $800 of cash. How much must Tanya include in taxable income?

A. $1,040.

B. $4,000.

C. $1,120.

D. $0.

Question 30

2.5 Points

Tasha LLC purchased furniture (7-year property) on April 20 for $20,000 and used the half-year convention. Tasha did not take 179 or bonus depreciation in the year it acquired the furniture. During the current year, which is the fourth year Tasha LLC owned the property, the property was disposed of on December 15. Calculate the maximum depreciation expense. (Use MACRS Table 2) EXHIBIT 10-6 (Round final answer to the nearest whole number.)

A. $2,498.

B. $1,249.

C. $2,095.

D. $898.

E. None of the choices are correct.