Question 1 (1 point) Question 1 Unsaved What form does a self-employed sole proprietor

usually use to report income and expenses from business? Question 1 options: Schedule
D Schedule A, Miscellaneous Itemized Deductions Schedule C Form 2106, Employee
Business Expenses Save
Question 2 (1 point) Question 2 Unsaved In the current year, Mary started a profitable
housekeeping business as a sole proprietor. She has ten housekeepers working for her and
spends her time selling their services and coordinating her
employees' time. Mary made $50,000 in her first year of operations. In addition to filing a
Schedule C to report her business earnings, Mary must also file: Question 2 options:
Schedule SE Schedule A Schedule B Schedule D Save Question 3 (1 point)
Question3 Unsaved Which of the following formulas represents the proper method of
calculating cost of goods sold? Question 3 options: Beginning inventory + Purchases
Ending inventory Ending inventory Purchases Beginning inventory Beginning
inventory + Ending
inventory Purchases Purchases Beginning inventory Ending inventory Save
Question 4 (1 point)
Question 4 Unsaved

Which of the following taxpayers is entitled to a travel expense deduction?

Question 4 options:

An employee, who worked in the Salt Lake City plant of a company, who is assigned to
the Denver plant of the company for 4 years

An employee who travels between several business locations within the same city each
day

A manager of a chain of department stores who works in the main store 3 weeks out
of every month and visits distant branch locations on overnight trips during the
remainder of the month

An employee who resigns from his current job and accepts a new job in a city 500 miles

away from his current residence

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Question 5 (1 point)
Question 5 Unsaved

Joe is a self-employed information technology consultant. He takes a trip to Chicago

primarily for business. He takes two personal days to go to museums and see the sights of
Chicago. How should he treat the expenses related to this trip?
Question 5 options:

One hundred percent of the trip should be deducted as a business expense since the trip
was primarily for business.

Fifty percent of the trip should be deducted as a business expense since the IRS limits
such business expenses to 50 percent of the actual cost.

The cost of all of the airfare and the business days should be deducted, while the
cost of the personal days are not deductible.

None of the expenses are deductible since there was an element of personal enjoyment in
the trip.
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Question 6 (1 point)
Question 6 Unsaved

Which of the following expenses is deductible as an entertainment expense?

Question 6 options:

The depreciation on an airplane used to entertain customers

The cost of a hunting camp used to entertain customers

The dues of a racket club used to keep in shape

The cost of a cocktail party for clients paid for by a computer salesman at a
computer fair
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Question 7 (1 point)
Question 7 Unsaved

Which of the following taxpayers may not deduct the listed educational expenses
Question 7 options:

A CPA who attends a course to review for the real estate agents' exam

A corporate president who attends a management course at a local university

An attorney who attends a course on computing legal damages

A real estate broker who attends a college course on real estate law

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Question 8 (1 point)
Question 8 Unsaved

Which of the following employees may deduct the cost of a uniform?

Question 8 options:

A nurse who can wear casual clothes while on duty

A lawyer who is required by her employer to wear a business suit

A cheerleader for the Oakland Raiders football team who purchases her own
costume (cheap-o Raiders)

A furnace repairman who must wear overalls while on the job

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Question 9 (1 point)
Question 9 Unsaved

Which of the following business gifts are fully deductible?

Question 9 options:

A gift to a client costing $35

A gift to an employee, for 10 years of continued service, costing $250

A gift to a client and her nonclient spouse costing $45

A gift to an employee, for not having an on-the-job injury for 25 years, costing $2,000
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Question 10 (1 point)
Question 10 Unsaved

Bonita earns $31,000 from her job, and she has $1,000 of interest income. She has
itemized deductions and personal exemptions of $35,000. There are no casualty or theft
losses in the itemized deductions. What is Bonita's net operating loss for the current year?
Question 10 options:

$4,000

$3,000

$1,000
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