Question 24 : In preparing a tax return, all questions on the return must be answered. True False

Question 25: Section 1245 depreciation recapture potential does not carry over from a deceased taxpayer to the beneficiary taxpayer. True False

Question 26: Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Nonrecognition of gain allowed for involuntary conversions.

Net operating loss carryover provisions.

Use of the installment method to recognize gain.

Carryover of excess capital losses.

Question 27 A worthless security had a holding period of six months when it became worthless on December 10, 2023. The investor who had owned the security had a basis of $20,000 for it. Which of the following statements is correct?

Group of answer choices

The investor has a long-term capital loss of $20,000.

The investor has a short-term capital loss of $20,000.

The investor has a nondeductible loss of $20,000.

The investor has a short-term capital gain of $20,000.

Question 28: Molly exchanges land (adjusted basis of $85,000; fair market value of $78,000) used in her business and common stock held for investment (adjusted basis of $10,000; fair market value of $15,000) for a single parcel of land (fair market value of $93,000) to be used in her business in a like-kind exchange. What is Molly's recognized gain or loss?

Group of answer choices

$0

$5,000

($2,000)

($7,000)

Question 29 Interpret the following citation: 64-1 USTC 9618, aff'd in 344 F.2d 966.

Group of answer choices

A U.S. Tax Court Small Cases Division decision that was affirmed on appeal.

A U.S. Tax Court decision that was affirmed on appeal.

A U.S. District Court decision that was affirmed on appeal.

A U.S. Circuit Court of Appeals decision that was affirmed on appeal.

Question 30 Allowing a tax credit for certain solar energy property can be justified:

Group of answer choices

As helping small businesses.

As promoting administrative feasibility.

As promoting a government policy to use alternative energy sources.

Based on the wherewithal to pay concept.

Question 31 Isabis exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $700,000. In addition, Isabis receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land?

Group of answer choices

$0 and $420,000.

$100,000 and $420,000.

$100,000 and $520,000.

$280,000 and $700,000.

Question 32 A factory building owned by Amber, Inc. is destroyed by a hurricane. The adjusted basis of the building was $400,000 and the appraised value was $425,000. Amber receives insurance proceeds of $390,000. A factory building is constructed during the nine-month period after the hurricane at a cost of $450,000. What is the recognized gain or loss, and what is the basis of the new factory building?

Group of answer choices

$0 and $450,000.

$0 and $460,000.

($10,000) and $440,000.

($10,000) and $450,

Question 33 A CPA assisting a client with an IRS examination is subject to the following requirement:

Group of answer choices

The Taxpayer Bill of Rights.

Circular 230.

The Safeguards Rule.

Completion of the IRS Enrolled Agent exam.

Question 34 Which item may not be cited as a precedent?

Group of answer choices

Regulations

Temporary Regulations

Technical Advice Memoranda

U.S. District Court decision

Question 35 On May 2, 2023, Imani placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6,300 lbs. The vehicle is used 60% for business and 40% for personal use. Determine Imani's total cost recovery for 2023. Imani wants to use both 179 and additional first-year depreciation.

Group of answer choices

$28,900

$30,320

$34,864

$36,000

Question 36 Taxes not imposed by the Federal government include:

Group of answer choices

Tobacco excise tax.

Customs duties (tariffs on imports).

Tax on rental cars.

Gas guzzler tax.

Question 37: What happens to the 199A deduction if a qualified trade or business generates a loss?

Group of answer choices

If the net amount of income, gain, deduction, and loss is less than zero, the net amount of the deduction can be carried back to a previous year or the taxpayer can elect to carry it forward.

If the net amount of income, gain, deduction, and loss is less than zero, the net amount of the deduction is lost and is not available to carryforward or carryback.

If the net amount of income, gain, deduction, and loss is less than zero, the net amount is treated as a loss in the succeeding year.

None of these.

Question 38: If these citations appeared after a trial court decision, which one means that the decision was overruled?

Group of answer choices

Aff'd 633 F.2d 512 (CA-7, 1980).

Rem'd 399 F.2d 800 (CA-5, 1968).

Aff'd 914 F.2d 396 (CA-3, 1990).

Rev'd 935 F.2d 203 (CA-5, 1991).

Question 39: Robert and Diane, husband and wife, live in Pennsylvania, a common law state. They purchased land as joint tenants in 2019 for $300,000. In 2023, Diane dies and bequeaths her share of the land to Robert. The land has a fair market value of $450,000. What is Robert's adjusted basis for the land?

Group of answer choices

$300,000

$375,000

$450,000

$750,000

Question 40 Characteristics of the "fair tax" (i.e., national sales tax) include which, if any, of the following:

Group of answer choices

Abolition of the Federal individual (but not the corporate) income tax.

Abolition of all Federal income taxes but retention of payroll taxes (including the self-employment tax).

Abolition of all Federal income taxes and payroll taxes but retention of the Federal estate and gift taxes.

Abolition of all Federal income and payroll taxes as well as the Federal estate and gift taxes.

Question 41

Spencer has an investment in two parcels of vacant land. Parcel 1 is a capital asset and parcel 2 is a 1231 asset. Spencer already has a short-term capital loss for the year that he would like to offset with capital gain. He has a 1231 lookback loss that exceeds the gain from the disposition of either land parcel. Spencer wants to sell only one land parcel: each of them would yield the same amount of gain. The gain that would be recognized exceeds the short-term capital loss Spencer already has. Which of the following statements is correct?

Group of answer choices

Spencer will have a net capital loss no matter which land parcel he sells.

Spencer will have a net capital loss if he sells parcel 2.

Spencer will have a net capital loss if he sells parcel 1.

Spencer will have a net capital gain if he sells either parcel 1 or parcel 2.

Question 42 : Which of the following assets would be subject to cost recovery?

Group of answer choices

A painting by Picasso hanging on a physician's office wall.

An antique vase in a doctor's waiting room.

Landscaping around the doctor's office.

Choices a., b., and c.

: Question 43 A business taxpayer sells inventory for $80,000. The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been held more than one year. The taxpayer has: Group of answer choices

No gain or loss.

Sold a long-term capital asset.

Sold a short-term capital asset.

An ordinary gain.

Question 44 In 2023, Sam and Betty, each single, both generate sole proprietor income of $250,000. Sam's income is generated from a wholesale business whereas Betty's is earned from her law practice. Neither has any employees or qualified assets. Both claim the standard deduction and have other income equal to the standard deduction amount.

Group of answer choices

Both Sam and Betty will have a QBI deduction of $48,000.

Sam can obtain a QBI deduction, but Betty cannot because of the taxable income level and law practice is a specified service business.

Neither Sam nor Betty will generate a QBI deduction due to their taxable income levels.

None of these.

Question 47: Which of the following is not a characteristic of MACRS for property other than real estate? Group of answer choices

MACRS uses shorter asset lives.

MACRS increases taxable income in the early years of the asset's life.

MACRS accelerates cost recovery.

MACRS decreases taxable income in the early years of the asset's life.

Question 48: Provisions in the tax law that promote energy conservation and more use of alternative (nonfossil) fuels can be justified by:

Group of answer choices

Political considerations.

Economic and social considerations.

Promoting administrative feasibility.

Encouragement of small business.

Question 49: Nancy gives Manuel a crane to use in his business with a fair market value of $61,000 and a basis in Nancy's hands of $80,000. No Federal gift tax was paid. What is Manuel's basis for depreciation (cost recovery)?

Group of answer choices

$0

$19,000

$61,000

$80,000

Question 50: Michaela is in the business of creating posters (display art) for the movie industry. She creates a poster and sells it for a lump sum. She has:

Group of answer choices

Sold a capital asset.

Sold an ordinary asset.

An ordinary gain.

Choices b. and c.

please can you help me each a question correcly , thank you