$1.$ During $20x3,$ calendar year Corp. A purchases office furniture costing $$10,000(salvage$ value $$1,000),$ a machine costing $$90,000(salvage$ value $$4,000),$ three computers costing $$12,000(salvage$ value $$500),$ and $an$ office building costing $$1,060,000,$ $$100,000of$ which $is$ allocated $to$ land.

These are the only acquisitions $of$ depreciable property acquired during the year.

What $is$ the maximum Code Sec. $179$ deduction available for $20x3?$

$A.$

$$102,000$

$C.$

$90,000$

$112,000$

$E.$

$100,000$

None $of$ the above

$2.$ Fred Farley spends considerable time each year pursuing

Ten independent multiple choice questions appear below. You must answer all $of$ them.

Answer all questions assuming that the relevant tax year $is2023$ unless a problem states

otherwise.

For all questions, unless the facts state otherwise, assume that the taxpayer neither elects $to$

claim $an$ IRC $179$ deduction nor uses bonus depreciation.

For each question you answer, insert $in$ the appropriate space $on$ the separate answer

sheet the letter which indicates the correct response. Please note than all final answers

have been rounded $to$ the nearest $$10.$

During $20x3,$ calendar year Corp. A purchases office furniture costing $$10,000$$$1,000$ $$90,000$$$4,000$ $$12,000$$$500$ $$1,060,000,$$$100,000of$ which $is$ allocated

$to$ land. These are the only acquisitions $of$ depreciable property acquired during the year.

What $is$ the maximum Code Sec. $179$ deduction available for $20x3?$

$A.$ $$102,000$

$B.90,000$

$C.112,000$

$D.100,000$

$E.$ None $of$ the above

Fred Farley spends considerable time each year pursuing his electric train hobby $--$

occasionally attending train shows throughout the eastern half $of$ the United States.

$At$ shows, Fred often buys and sells train cars and accessories. During $205,$ Fred

recorded gross sales $of$ $$1,700at$ these events and incurred ordinary and

necessary expenses $of$ $$2,000.On$ his Form $20x51040,$ Fred should report $...$

A Gross revenue $of$ $$1,700,$ but can deduct $$2,000$ "for AGI."

$B$ Gross revenue $of$ $$1,700,$ but can deduct $$2,000$ "from AGI."

$C$ Gross revenue $of$ $$1,700,$ but can deduct $no$ expenditure amount

$D$ Gross revenue $of$ zero and $no$ deduction anywhere

$E$ None $of$ the above

Taxpayer sells $an$ asset for $$200,000.$ Assume the taxpayer has owned the asset

for several years; the original cost was $$150,000$; and Taxpayer has claimed

depreciation deductions $of$ $$90,000.$ Assume also that Taxpayer incorrectly computed

depreciation over the years and should have claimed depreciation deductions $of$

$$110,000.$ Assuming that Taxpayer will not file amended returns $to$ correct any prior

depreciation errors, how should the Taxpayer report the sale?

A Gain $of$ $$140,000$ and itemized deduction $of$ $$10,000$

$B$ Gain $of$ $$140,000$ and itemized deduction $of$ $$20,000$

$C$ Gain $of$ $$140,000$

$D$ Gain $of$ $$160,000$

$E$ None $of$ the above

During $20x8,$ single taxpayer Caroline Conner pays student loan interest expense $of$

$$3,200.$ Caroline's adjusted gross income $is$ $$98,000$ for the year. What will $be$ Caroline's

student loan interest itemized deduction for the year?

$E.$ None $of$ the above

Calendar year Corp. A purchased and placed $in$ service a machine $(7-$year asset$)$ costing $$310,000$

$on$ August $21,20x1.$ Corp. A sold the property $on$ March $25,204.$ What amount $of$ depreciation

expense with respect $to$ the machine wil Calendar year Corp. A purchased and placed $in$ service a machine $(7-$year asset$)$ costing $$310,000$

$on$ August $21,201.$ Corp. A sold the property $on$ March $25,204.$ What amount $of$ depreciation

expense with respect $to$ the machine will Corp. A claim for $204?$ Assume that the machine

was the only fixed asset acquired and placed $in$ service during $201.$

$A.,$$$38,720$

$B.0$

$C.26,850$

$D.19,360$

$E.$ None $of$ the above

$On$ August $23,2016,$ Donald Dawson purchased and immediately placed $in$ service a small

apartment building for $$1,200,000,of$ which $$400,000$ was allocated $to$ the land $on$ which

the building was located. The estimated life $of$ the building was $40$ years, with a salvage

value $of$ $$480,000.$ What $is$ Donald's allowable depreciation for year $2023?$

During $204,$ calendar year Corp. A purchases and immediately places $in$ service assets $as$

set out below.

May $17$ Office furniture $--cost$ $$7,000,$ useful life $20$ years, salvage value $$500$

August $8,$ Machine $--cost$ $$20,000,$ useful life $7$ years, salvage value $$1,000$

November $3,$ Machine $--cost$ $$2,000,$ useful life $4$ years, salvage value $$1,000$

What depreciation deduction amount will Corp. A claim $on$ its $205$ federal income tax return

for the machine purchased $on$ A self$-$employed attorney uses a country club for entertainment and client meetings. During

$20x8,$ the attorney spends amounts $as$ set out below $at$ the club.

What amount will $be$ deductible against business income $on$ the attorney's $20x8$ federal

income tax return?

$A.$ $ $0$

$B.1,250$

$C.2,500$

$D.2,250$

$E.$ None $of$ the abovel Corp. A claim for $204?$ Assume that the machine

was the only fixed asset acquired and placed $in$ service during $201.$

$A.,$$$38,720$