Tax

1. An asset (not an automobile) put in service in June 2020 has a depreciable basis of $35,000 and a recovery period of 5 years and is the only asset placed in service this year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made, what is the maximum amount of cost that can be deducted in 2020 (assume no income limitation)? a. b. C. d. $17.500 $35,000 $24.400 $21.000 $7,000 e. 2. Robert and Mary file a joint tax return for 2020 with adjusted gross income of $34,000. Robert and Mary earned income of $20,000 and $14,000, respectively, during 2020. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John ion Day Care Center for John $1,700 Ima (Robert's mother) for babysitting John $1,000 at is the amount of the child and dependent care credit they should report on their tax return for 2020 ume no tax liability limitation)? None of these b. $675 $729 d. $459 $270 a. C. e. 3. Keith has a 2020 tax liability of $2,250 before taking into account his American Opportunity tax credit. He paid $2,600 in qualifying expenses, was a full-time student, was not claimed as a dependent on his parents' return, and his American Opportunity tax credit was not subject to phase-out. What is the amount of his American Opportunity tax credit allowed? a. b. $2,250 $2,600 $0 $2,150 $4,000 C. d. e. a. 4. Grape Pack Corp bought a $600,000 apartment building in June of 2019. Of the purchase price, $104,950 is allocated to the value of the land. What is the maximum amount of depreciation that the company can claim in 2020 (Year 2) for the building? $21,816 b. You cannot depreciate property costing over $500,000 $9,752 d. $18,000 C