ACCOUNTING PRACTICE
QUESTIONS
During 2013, a corporation purchased machinery
costing $200,000 and a warehouse costing $600,000. These are the only two
acquisitions of depreciable property purchased by the corporation in 2015. The
maximum deduction the corporation can claim under Code Sec. 179 in 2015 is:
a. $500,000
b. $800,000
c. $25,000
d. $200,000
4. A calendar-year
corporation incurs $53,000 of start-up costs. If the corporation began business
on August 1 of the current year, what is the maximum amount of the start-up
costs that it can deduct against business income in the current year? (round
your answer to the nearest dollar)
a. $3,417
b. $5,000
c. $2,000
d. $6,333
e. none of the
above
5. During 20153, Tommy’s home was burglarized.
Tommy had the following items stolen.
• A
block of securities worth $20,000. Tommy purchased of securities three years
ago for $8,000.
• A
block of securities worth $30,000. Tommy purchased the securities for $24,000
two years ago.
Tommy’s homeowners policy had an $80,000
deductible clause for thefts. How much is Tommy’s theft loss for 2015?
a. $50,000
b. $32,000
c. $44,000
d. None of the
above.
6. Tammy has the
following items for the current year:
|
Nonbusiness capital gains |
$10,000 |
|
|
Nonbusiness capital losses |
(2,000 |
) |
|
Interest Income |
7,000 |
|
|
Itemized deductions (none of the amount realized from a casualty |
(9,000 |
) |
In calculating Tammy’s net operating loss, and
with respect to the above amounts only, what amount must be added back to
taxable income (loss)?
a. $0
b. $2,000
c. $3,000
d. $6,000
