PLEASE ANSWER ALL QUESTIONS BELOW:

138.Kirk decides to use the simplified option for his home office deduction on his 2016 income tax return. He figures he uses 200 square feet of his home for business. What is his allowable home office deduction?

A.$0

B.$600

C.$1,000

D.$2,000

139.Liberty is calculating her cost of goods sold to enter on her Schedule C. Her inventory at the beginning of the year amounted to $50,000. Her cost for labor and materials was $20,000. She had no other costs. Her inventory at the end of the year totaled $58,000. What amount for cost of goods sold will Liberty enter on her Schedule C?

A.$12,000

B.$20,000

C.$25,000

D.$50,000

140.A taxpayer can generally deduct premiums he or she pays for all of the following kinds of insurance related to business except:

A.Medical and dental insurance for him or herself and his or her family

B.Liability insurance

C.Insurance to secure a loan

D.Workers Compensation insurance

141.In 2016, Noelle, a self-employed landscaper who uses the cash method of accounting, signed a 3-year health insurance contract. She paid premiums of $500 for 2016, $550 for 2017, and $600 for 2018 when she signed the contract. What amount can she deduct for the premiums on her 2016 income tax return?

A.$0

B.$250

C.$500

D.$1,050

142.The general rule is that taxpayers who use a part of the home for legitimate business purposes can deduct expenses allocable to that portion of the home used for those business purposes. To meet this qualification all of the following must apply except:

A.Part of the home is exclusively used on a regular basis as the principal place of business for any of the trades or businesses

B.Part of the home is exclusively used on a regular basis as a place of business used by patients, clients or customers to meet or deal with the taxpayer in the normal course of the trade or business

C.Part of the home is exclusively used on a regular basis in connection with the trade or business if it is a separate structure that is not attached to the home

D.Part of the home is used on a regular basis as a home office and family room used by the rest of the family for entertainment

143.Travel expenses are the ordinary and necessary expenses of traveling away from home for business. Which of the following kinds of travel expenses are not applicable for deduction on Schedule C or C-EZ?

A.Cost of a hotel stay in the general area in which the taxpayers business is located

B.Cost of travel by car between the taxpayers tax home and the out-of-town business destination

C.Cost of business calls while on the business trip

D.Costs of dry cleaning and laundry while on the business trip

144.The taxpayer can deduct any expenses paid or incurred for a membership at all of the following organizations except:

A.Civic or public service organizations

B.Airline and hotel clubs

C.Professional organizations (such as bar and medical associations)

D.Trade associations

148.Harvey is the sole proprietor of a flower shop. He drove his van 20,000 miles during the year. 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. Instead of figuring actual expenses, Harvey decides to use the standard mileage rate to figure the deductible costs of operating his van. What amount can Harvey claim as the cost of operating his van as a business expense?

A.$0

B.$4,600

C.$8,640

D.$9,820

149.Carl, a single filer, has $145,000 in self-employment income and $130,000 in wages. Carls wages do not exceed $200,000. Carls employer did not withhold Additional Medicare Tax. Therefore, Carl is liable to pay Additional Medicare Tax on what amount of self-employment income?

A.$0

B.$75,000

C.$130,000

D.$145,000

150.When determining earnings subject to SE tax, the taxpayer may want to use one of the optional methods whether they have a small net profit or loss and which of the following conditions applies?

A.They are eligible to receive the Additional Child Tax Credit

B.They can claim a Credit for Dependent or Child Care Expenses

C.Taxpayer wants to receive a Credit for Social Security Benefit Coverage

D.All of the above