Question7

Regina is self employed and in 2023 flew to New York for a business trip where she stayed for two nights in a hotel, costing $500.

While there, she had 5 meals at the hotel restaurant by herself costing a total of $400.

She took a client out to a dinner to discuss business, which cost a total of $200.

Regina spent the entire trip on business.

The round trip airfare cost $900

Parking at the airport cost $100

How much of her total $2,100 expenditures is deductible?

a.

$2,100 (all of the expenses).

b.

$1,700 ($1500 travel + $200 meals)

c.

$1,800 ($1,500 travel + $300 meals)

d.

$2000 (all expenses except the parking)

Question8

Roberta has her own veterinary practice. She grossed over $200,000 last year in earnings.

She paid $4,000 a year in medical insurance premiums for herself, $5,000 for her spouse who is unemployed and has health issues. She also paid $2,000 in medical insurance premiums for their 22-year old son who is her dependent.

How much of these premiums is she allowed to deduct?

Select one:

a.

$11,000.

b.

9,000.

c.

$4,000.

d.

$2,000.

e.

None.

Question9

Jill has her own business staging homes that are up for sale. In 20X1 she was very successful and earned $200,000. Jill pays for her own medical insurance costing her $6,000 in 20X1.

Her spouse is an engineer for a company with a plan that subsidizes the medical insurance premiums of both the spouse and Jill.

Because Jill and her spouse prefer the type of insurance she can get on her own, spouse takes the employer subsidized insurance (which costs him only $300 for the year) and Jill purchases her own.

How much of the insurance premiums can Jill and her spouse deduct?

Question 9Select one:

a.

$6,300.

b.

$6,000.

c.

$300.

d.

None.

Question 10

Meta Enterprises is a publicly traded corporation registered with the Securities and Exchange Commission (SEC). It paid its CEO $3 million in salary and commissions in 2022.

CEOs, in similar businesses with a similar educational backgrounds, were paid, on average, $1,500,000 in salary and bonuses in 20X2. Meta Enterprises enjoyed a very profitable year in 20X1 and can trace its success directly to the actions of the CEO.

How much of CEO's 2022 salary is likely to be deductible? (ignore any inflation adjustments)

Question 10Select one:

a.$0.

b.$1 million.

c.$1,500,000.

d.$3 million.

Question11

Taxpayer is an executive employee in a private corporation. She earns an annual salary of $500,000, a typical salary amount for her position. In addition, she receives a certain percentage of the corporation's net earnings. For 2022, TP earns an additional $800,000, resulting in total compensation received of $1,300,000.

How much of this compensation can the corporation deduct?

Select one:

a.

$500,000.

b.

$8,000,000.

c.

$1,000,000.

d.

$1,300,000.