PLEASE ANSWER 151 - 160

Question 151

Victor has a farm that he operates. He also derives $7,000 per year in income from nonfarm activities. What method or methods can Victor use to report the income from his nonfarm activities?

A.Victor can use the farm and nonfarm methods whichever is most beneficially to him

B.Victor must use the farm-only method for all income earned

C.Victor must use the nonfarm method for all income earned

D.Victor can use the nonfarm optional method for earnings that do not come from farming activities and only if he has used this method less than 5 years

Question 159

A taxpayer can depreciate property under all of the following circumstances except:

A.He or she made a down payment to purchase rental property and assumed the previous owner's mortgage

B.He or she bought a new van that he or she will use only for his or her courier business and he or she will be making payments on the van over the next 5 years

C.He or she bears the burden of exhaustion of the capital investment in a leased property

D.He or she leases property from someone to use in his or her trade or business or for the production of income

Question 160

To figure the basis of property a taxpayer receives as a gift, it is necessary to have which of the following?

A.Adjusted basis to the donor just before it was given to the taxpayer

B.The Fair Market Value (FMV) at the time it was given to the taxpayer

C.Any gift tax paid on the property

D.All of the above