AC507 Unit 3 Quiz

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AC507 Unit 3 Quiz

AC507 Unit 3 Quiz

  1. Which of the following is a taxable fringe benefit when paid by the employer?
  2. Which of the following is not taxable to an employee when paid for by the employer?
  3. Which of the following are characteristics of a traditional IRA?
  4. Which of the following are characteristics of a Roth IRA?
  5. A taxpayer who is a bona fide resident of a foreign country for an entire tax year may:
  6. Sara, a cash-basis, calendar-year taxpayer, worked overseas for the past three years and is eligible for the foreign earned income exclusion for the income earned from January 1 through January 31, 2014 before she returned to the United States. She was paid $30,000 including bonuses for this month’s work but she did not have to pay any foreign taxes on this income. What is her foreign earned income exclusion for 2014?
  7. Cleo spent $4,000 on organization costs for her business and $13,000 training staff. If the business is a calendar-year cash-basis business that starts operations on June 1, what is the current year’s deduction for these expenses?
  8. Waldo bought two tickets for a Packers game on Ebay for $400. The tickets had a face value of $50 each. He took a client to the game and they had a dinner afterwards where they discussed business. The cost of the dinner was $70. What is Waldo’s deduction for these expenses?
  9. Corinne’s primary business is writing music. She uses one room in her home exclusively and regularly for the activity. The office occupies 300 of the 1,500 square feet in her apartment. She earned $2,100 this last year from her music. Her expenses for the entire home were $9,000 for rent and $2,000 for utilities. What is her home office expense deduction this year?
  10. Which of the following would not be used to determine if an activity is a business or a hobby?