Question 1

Expenses in connection with the acquisition of land are not research and experimental expenditures.

Accepted Answer

A) True 
 B)False

Question 2

Bruce,who is single,had the following items for the current year:  Determine Bruce's AGI for the current year.

Accepted Answer

A)  $37,000.
B)  $38,000.
C)  $42,000.
D)  $47,000.
E)  None of the above.F) C) and D)
G) D) and E)

Question 3

In determining whether a debt is a business or nonbusiness bad debt,the debtor's use of the borrowed funds is important.

Accepted Answer

A) True 
 B)False

Question 4

Several years ago,John purchased 2,000 shares of § 1244 stock from Red Corporation for $40,000.Last year,John sold one-half of his Red Corporation stock to Mike for $12,000.During the current year,Mike sold the Red Corporation stock for $3,000.Mike has a $9,000 ($3,000 - $12,000)ordinary loss for the current year.

Accepted Answer

A) True 
 B)False

Question 5

Identify the factors that should be considered in determining whether a transaction is a business bad debt or a nonbusiness bad debt.

Accepted Answer

Factors to be considered in de...

Question 6

Neal,single and age 37,has the following items for 2010:
  Determine Neal's taxable income for 2010.

Accepted Answer

The answer of Neal,single and age 37,has the following items...

Question 7

A casualty loss deduction is not allowed for losses resulting from a decline in value rather than an actual loss of property.

Accepted Answer

A) True 
 B)False

Question 8

Last year,taxpayer had a $10,000 business loan that was written off.Last year,taxpayer also had an NOL which taxpayer carried back two years and used in its entirety.If taxpayer collects the entire $10,000 during the current year,$10,000 needs to be included in gross income.

Accepted Answer

A) True 
 B)False

Question 9

A nonbusiness bad debt is a debt unrelated to the taxpayer's trade or business either when it was created or when it became worthless.

Accepted Answer

A) True 
 B)False

Question 10

If the amount of the insurance recovery for a theft of business property is greater than the asset's fair market value but less than it's adjusted basis,a loss is recognized.

Accepted Answer

A) True 
 B)False

Exam 7: Deductions and Losses: Certain Business Expenses and Losses

Correct Answer
verified

If the amount of the insurance recovery for a theft of business property is greater than the asset's fair market value but less than it's adjusted basis,a loss is recognized.

Correct Answer
verified

In determining whether a debt is a business or nonbusiness bad debt,the debtor's use of the borrowed funds is important.

Correct Answer
verified

Bruce,who is single,had the following items for the current year: Determine Bruce's AGI for the current year.

Correct Answer
verified

Neal,single and age 37,has the following items for 2010: Determine Neal's taxable income for 2010.

Correct Answer
verified

Identify the factors that should be considered in determining whether a transaction is a business bad debt or a nonbusiness bad debt.

Correct Answer
verified
Factors to be considered in de...
View Answer

Expenses in connection with the acquisition of land are not research and experimental expenditures.

Correct Answer
verified

A casualty loss deduction is not allowed for losses resulting from a decline in value rather than an actual loss of property.

Correct Answer
verified

A nonbusiness bad debt is a debt unrelated to the taxpayer's trade or business either when it was created or when it became worthless.

Correct Answer
verified

Last year,taxpayer had a $10,000 business loan that was written off.Last year,taxpayer also had an NOL which taxpayer carried back two years and used in its entirety.If taxpayer collects the entire $10,000 during the current year,$10,000 needs to be included in gross income.

Correct Answer
verified

Exam 7: Deductions and Losses: Certain Business Expenses and Losses

Correct AnswerverifiedShow Answer

If the amount of the insurance recovery for a theft of business property is greater than the asset's fair market value but less than it's adjusted basis,a loss is recognized.

Correct AnswerverifiedShow Answer

In determining whether a debt is a business or nonbusiness bad debt,the debtor's use of the borrowed funds is important.

Correct AnswerverifiedShow Answer

Bruce,who is single,had the following items for the current year: Determine Bruce's AGI for the current year.

Correct AnswerverifiedShow Answer

Neal,single and age 37,has the following items for 2010: Determine Neal's taxable income for 2010.

Correct AnswerverifiedShow Answer

Identify the factors that should be considered in determining whether a transaction is a business bad debt or a nonbusiness bad debt.

Correct AnswerverifiedFactors to be considered in de...View AnswerShow Answer

Expenses in connection with the acquisition of land are not research and experimental expenditures.

Correct AnswerverifiedShow Answer

A casualty loss deduction is not allowed for losses resulting from a decline in value rather than an actual loss of property.

Correct AnswerverifiedShow Answer

A nonbusiness bad debt is a debt unrelated to the taxpayer's trade or business either when it was created or when it became worthless.

Correct AnswerverifiedShow Answer

Last year,taxpayer had a $10,000 business loan that was written off.Last year,taxpayer also had an NOL which taxpayer carried back two years and used in its entirety.If taxpayer collects the entire $10,000 during the current year,$10,000 needs to be included in gross income.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Factors to be considered in de...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified