Final Exam > Results Page
final exam score:
final exam status:
90%
Question 1
Correct
Delores Shipman, an architect employed in Chicago, decided to take a one-week course on the latest building techniques. She went to San Francisco, devoted one week to the course, and then spent two weeks visiting old friends and sightseeing. After that, Delores returned to Chicago. None of Delores’s expenses were reimbursed by her employer. What travel expenses can Delores deduct, assuming that she can itemize and has other miscellaneous itemized deductions in excess of 2% of her adjusted gross income?
Transportation expenses to and from San Francisco
(You Answered) (Correct Answer) Continuing education expenses and meals and lodging during the one week spent on education
Meals and lodging during the two weeks visiting old friends
All of the above
Question 2
Correct
Theo Dowd is an outside salesman who travels constantly. Theo’s sales territory spans seven states that comprise the company’s Midwest region. Although Theo’s company headquarters are in Chicago, Illinois, he does not conduct any business there. Theo’s work assignments are temporary and he has no way of knowing the location of his future work assignments. Theo has a room in his brother’s house located in Hammond, Indiana, where he stays on weekends several times a year. He does not pay his brother rent for the room and he does not have customers in the area. Theo incurs a sizable amount of lodging and meal expenses, which are not reimbursed by his employer. Where is Theo’s tax home?
Chicago, Illinois
Hammond, Indiana
Washington, D.C.
(You Answered) (Correct Answer) Theo does not have a tax home.
Question 3
Correct
Shawn Simmons maintains his family home in Philadelphia, Pennsylvania. His main place of employment is New York City. Shawn flies to New York to conduct his business. During the year, Shawn and his wife flew to Chicago for a business convention relating to Shawn’s business. Shawn’s wife’s only business function was entertaining customers, and none of his expenses were reimbursed by his company. Assuming that Shawn and his wife can itemize and meet the 2% of AGI floor for miscellaneous itemized deductions, they are entitled to deduct:
Shawn’s travel to and from New York City
(You Answered) (Correct Answer) Shawn’s travel to and from Chicago
Shawn and his wife’s travel to and from Chicago
Shawn’s travel to and from New York City, and Shawn and his wife’s travel to and from Chicago
Question 4
Correct
Benjamin Thompson lives in Miami, Florida. During the year, Benjamin traveled to Paris, France, for business. He left Miami on Sunday. The business meeting was held on Monday and Tuesday. Benjamin spent Wednesday and Thursday sightseeing before flying home Friday. How many of the six days that Benjamin was out of town count as business days?
2
3
(You Answered) (Correct Answer) 4
6
Question 5
Correct
Barbara Watkins flew from New York City to Munich, Germany, on business. She spent 12 days on business and 3 days sightseeing before flying back to New York. Barbara spent one day flying in each direction. What travel expenses can Barbara deduct?
The entire trip to Munich is deductible. However, meals are subject to the 50% limit.
Barbara can deduct the round-trip airfare and 12 days of meals (subject to the 50% limit), lodging, and other business related expenses.
(You Answered) (Correct Answer) Barbara can deduct the round-trip airfare and 14 days (12 days of business and two days flying) of meals (subject to the 50% limit), lodging, and other business-related expenses.
None of the above.
Question 6
Correct
Michele Sherman is a fashion designer who lives and works in Nashville, Tennessee. Michelle takes a temporary job in Memphis that was scheduled to last 10 months. After 7 months, Michelle is informed that the assignment will actually last 13 months. Michelle returns to Nashville after she completes the 13-month assignment. Which of the following statements is true regarding Michelle’s travel expenses while living in Nashville?
(You Answered) (Correct Answer) Since the assignment was originally scheduled to last less than a year, Michelle will be able to deduct her travel expenses until the end of the seventh month when she learned that her assignment would last more than a year.
Since the assignment was originally scheduled to last less than a year, Michelle will be able to deduct her travel expenses for the first 12 months.
Since the assignment actually lasted for more than a year, Michelle cannot deduct any of her travel expenses.
Since the assignment was originally scheduled to last less than a year, Michelle will be able to deduct her travel expenses for the original 10 months the assignment was scheduled to last.
Question 7
Correct
John Smith is employed as a sales manager by ABC Manufacturing Company. John incurred the following unreimbursed expenses for days away from home on business for the year: \r\rBusiness meals $1,000\rLodging 1,600\rTransportation 1,000\rEntertainment of clients 2,200\r\rJohn is able to itemize on Schedule A. His adjusted gross income, without regard to the above expenses, is $50,000. If John does not have any other miscellaneous itemized deductions, what is the amount of unreimbursed business expenses that will increase the amount John will deduct as itemized deductions on Schedule A?
$4,200
(You Answered) (Correct Answer) $3,200
$5,300
$4,300
Question 8
Incorrect
Howard Stein, DEF Corporation president and controlling shareholder, takes a 10-day trip to Europe. Howard spends six days conducting business and four days vacationing. His costs for the trip include $1,000 for airfare, $170 a night for the hotel (five of which were business-related), and $50 a day for meals (six of which were for business). Which of the following amounts of travel expenses is deductible?
$2,150
(Correct Answer) $1,600
(You Answered) $2,000
$1,750
Question 9
Correct
Ann Carter, a self-employed travel agent, traveled by ocean liner from Boston to Belfast, Ireland, for business in June. Ann’s expenses for the 10-day cruise were $7,500. Meals and entertainment costs were not separately stated. Assuming that the highest applicable federal per diem travel rate is $258, how much can Ann deduct of her travel on the cruise ship?
(You Answered) (Correct Answer) $5,160
$3,750
$7,500
$2,580
Question 10
Correct
Isabel Howard, CEO of ABC Corporation, takes a 6-day domestic business trip. Isabel spends 3 days conducting business and 3 days vacationing. Her costs for the trip include $320 for airfare, $155 a night for the hotel (3 were business-related), and $70 a day for meals (3 days of which were for business). If ABC reimburses Isabel for her business trip, how much can it deduct on its corporate tax return?
(You Answered) (Correct Answer) $570
$890
$675
$995