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:
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)
e. none of the
5. During 20153, Tommy’s home was burglarized.
Tommy had the following items stolen.
block of securities worth $20,000. Tommy purchased of securities three years
ago for $8,000.
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?
d. None of the
6. Tammy has the
following items for the current year:
Nonbusiness capital gains
Nonbusiness capital losses
Itemized deductions (none of the amount realized from a casualty
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)?
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