Final Exam > Results Page
final exam score:
final exam status:
80%
Question 1
Incorrect
Roland Burns, a self-employed taxpayer, pays $250 for two theater tickets that he intends to use by taking a client to the theater after a business dinner. At the last minute, Roland is unable to go and he gives both tickets to his client. Which of the following statements is correct with regard to the tickets?
(You Answered) Roland can deduct $50 as a business gift.
Roland can deduct $25 as a business gift.
Roland can deduct $125 as an entertainment expense.
(Correct Answer) Roland has the option of deducting $25 as a business gift or $125 as an entertainment expense.
Question 2
Correct
Ted Knight, an employee of an architectural firm, makes the following gifts that were not reimbursed by his employer: \r\rGift to Fred Sanders—a client of Ted Knight $20\rGift to Tina Sanders, Fred Sanders's wife—not a client of Ted Knight $15\rGift to Arnold Down—a client of Ted Knight $30\rGift-wrapping for the gifts to Fred, Tina, and Arnold ($5 per gift) $15\r\rWhat amount will Ted deduct as a miscellaneous itemized deduction on Schedule A for business-related gifts?
$50
$55
(You Answered) (Correct Answer) $60
$75
Question 3
Correct
During the tax year, Henry Sheffield, a manufacturer, owns and uses a hunting lodge for both personal and business purposes. The operating expenses for the lodge, including depreciation, totaled $1,200 during the tax year. Henry used the lodge 75 percent for business (40 percent for directly related entertainment and 35 percent for associated entertainment). In addition to these expenses, Henry incurred the following expenses in connection with entertaining customers at the lodge:\r \rFood and beverages in entertainment that was directly related to the active conduct of his business—$1,700\rFood and beverages in entertainment that was associated with the active conduct of his business—$2,600\rPersonal and family consumption of food and beverages—$1,000\r\rWhat would be the amount allowed as a deduction for business meals and entertainment expenses?
$2,650
(You Answered) (Correct Answer) $2,150
$3,050
$2,600
Question 4
Correct
Tony Close, who is self-employed, paid $20,000 to rent a 20-seat skybox at Wrigley Field for seven baseball games. The cost of the regular, nonluxury box seats is $45 a seat. How much of the skybox rental can Tony deduct?
(You Answered) (Correct Answer) $3,150
$10,000
$6,300
$13,700
Question 5
Correct
Which of the expenses below is not deductible?
The cost for rounds of golf at the taxpayer’s country club, where the taxpayer and his client played golf immediately following a business meeting
(You Answered) (Correct Answer) Membership dues to an airline club that the taxpayer frequently uses to meet with clients while traveling for business
Dues a lawyer pays to the bar association
The cost of meals furnished on a yacht used to entertain business associates