1.-Randy is advised by his physician to install an elevator in his residence, since he is afflicted with heart disease. The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of the current year, and it increases the value of his residence by $8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for the current year?

a.$0

b.$1,000

c.$2,000

d.$10,000

e.None of these choices are correct.

2.- Section 197 intangibles:

a.Were defined in the Revenue Reconciliation Act of 1993.

b.Are amortized over a 15-year period.

c.Include goodwill, going-concern value, and information bases.

d.Are not amortized over the actual estimated useful life of the intangible asset.

e.All of these choices are true.

3.-

Self-employment taxes:

a.Apply to taxpayers with less than $400 in self-employment earnings.

b.Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment.

c.Consist of Medicare tax and Social Security tax.

d.Are not affected by wages the taxpayer earns as an employee.

4.-

A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is the only asset placed in service in 2018. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)?

a.$1,010,000

b.$210,000

c.$1,050,000

d.$1,000,000

e.$200,000

5.-

Simon sold investment property 2 years ago for $750. Simon's basis in the property was $200. Simon is receiving $150 per year from the buyer. Simon reports this income on the installment method. If Simon collects $150 in principal during the current year, how much gain should he report from the sale for the year?

a.$0

b.$90

c.$110

d.$75

e.None of these choices are correct.

6.-

Jon, age 45, had adjusted gross income of $26,000 in 2018. During the year, he incurred and paid the following medical expenses:

Drugs and medicines prescribed by doctors	$300
Health insurance premiums	$750
Doctors' fees	$2,250
Eyeglasses	$75

Jon received $900 in 2018 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

a.$525

b.$0

c.$3,375

d.$2,475

e.None of these choices are correct.

8.-

Taxpayer Q has net taxable income of $30,000 from Country Y which imposes a 40 percent income tax. In addition to the income from Country Y, taxpayer Q has net taxable income from US sources of $120,000, and US tax liability, before the foreign tax credit, of $30,290. What is the amount of Q's foreign tax credit?

a.$8,350

b.$12,000

c.$30,290

d.$6,058

e.None of these choices are correct.

9.-

If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party,

a.The disallowed loss may be used if there is a further loss on the subsequent sale.

b.The disallowed loss may be used to offset gain on the subsequent sale.

c.An amended return may be filed to claim the loss previously disallowed.

d.The unrelated party may claim the loss previously disallowed.

e.The disallowed loss is lost forever.

10.-

The maximum amount of depreciation including bonus depreciation on a passenger auto placed in service in 2018 is:

a.$3,160

b.$10,000

c.$0

d.$18,000