Test $-$ Standard Small Business Certification $(2025)-$ Test

Section $1-$ Case Study

Question $1$ of $15.$

What is the amount of gross receipts or sales required to be reported on Jason's Schedule C$?$

$$84,616$

$$82,236$

$$64,966$

$$60,076$

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Question $2$ of $15.$

What is Jason's cost of goods sold?

$$36,454$

$$36,409$

$$35,445$

$$31,000$

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Question $3$ of $15.$

The sewing$/$embroidery machine and the laptop computer were fully depreciated before the beginning of the current calendar year.

Which of the following is a reason why it is still important to ensure that these assets are properly accounted for in Asset Manager?

A portion of the prior$-$year special depreciation must be added back in years when the special depreciation rate is less than $100\%.$

Because special depreciation was claimed for two five$-$year assets in prior years, it must be claimed for any eligible five$-$year asset placed into service in a future year.

Total special depreciation claimed in prior years reduces the amount of the Section $179$ deduction available in future years.

A portion of the depreciation may need to be recaptured as ordinary income if either of these assets are later sold at a gain.

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Question $4$ of $15.$

What is the total amount of automobile expenses that Jason may deduct on Schedule C$?$

$$718$

$$678$

$$478$

$$378$

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Question $5$ of $15.$

What is the total amount of Jason's home office deduction?

$$16,738$

$$2,462$

$$2,410$

$$720$

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Question $6$ of $15.$

Does Jason owe an underpayment penalty? Why or why not?

No$,$ because his total amount due is less than $$1,000.$

No$,$ because his estimated payments were at least $90\%$ of his current$-$year income tax.

No$,$ because his estimated payments were at least $100\%$ of his prior$-$year income tax.

Yes, because he paid less than the required minimum amount through estimated payments.

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Question $7$ of $15.$

What is the total amount of Jason's qualified business property for the purpose of the Qualified Business Income Deduction?

$$3,294$

$$2,300$

$$994$

$$0$