The Dot Corporation has changed its year-end from a calendar year-end to an August 31 fiscal year end. The income for its short period from January 1 to August 31 is $48,000. The tax for this short period is: (Points : 1)

$4,800 $7,200 $8,667 $12,000

From the records of Tom, a cash basis sole proprietor, the following information was available: (i) Gross receipts $29,600, (ii) Dividend income (on personal investments) $200, (iii) Cost of sales $15,400, (iv) Other operating expenses $3,000, and (v) State business taxes paid $300. What amount should Tom report as net earnings from self-employment? (Points : 1)

$10,900 $11,200 $11,400 $14,400 None of the choices provided

Vernon is a cash basis taxpayer with a calendar tax year. On October 1, 2014 he entered into a lease to rent a building for use in his business at $3,000 a month. On that day Vernon paid 18 months rent on the building, a total of $54,000 ($3,000 18 months). How much may Vernon deduct for rent expense on his 2014 tax return? (Points : 1)

$0 $12,000 $36,000 $54,000 None of the choices provided