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Tax and Accounting 3200 questions?
22.During the year, Henry went from Philadelphia to Hawaii on business. Preceding a five-day business meeting, he spent three days vacationing at the beach. Excluding his three days of vacation expenses, his other expenses for the trip are:-Air Fare$2,100-Lodging $800-Meals$600-Entertainment$400Presuming no reimbursement, Henrys deductible expenses are:a.$2,350b.$2,850c.$3,000d.$3,400e.None of the above23.Cora purchased a hotel building on May 17, 2009, for $3,000,000. Determine the cost recovery deduction for 2010.a.$48,150b.$59,520c.$69,000d.$76,920e.$109,08024.Bob and April own a house at the beach. The house was rented to unrelated parties for 8 weeks during the year. April and the children used the house 12 days for their vacation during the year. After properly dividing the expenses between rental and personal use, it was determined that a loss was incurred as follows-Gross rental income $4,000-Less: Mortgage interest and property taxes $3,500oOther allocated expenses $2,000($5,500)-Net Rental loss ($1,500)What is the correct treatment of the rental income and expenses on Bob and Aprils joint income tax return for the current year assuming the IRS approach is used if applicable.a.A $1,500 loss should be reportedb.Only the mortgage interest and property taxes should be deductedc.Since the house was used more than 10 days personally by Bob and April, the rental expenses ( other than mortgage interest and property taxes are limited to the gross rental income in excess of deduction for interest and taxes allocated to the rental used.Since the house was used less than 50% personal by Bob and April, all expenses allocated to personal use may be deductede.Bob and April should include none of the income or expenses related to the beach house in their current year income tax return25.Lonnie developed severe arthritis and was unable to climb the stairs to reach his second-floor bedroom. His physician advised him to add a first-floor bedroom to his home. The Cost of constructing the room was $28,000. The increase in the value of the residence as a result of the room addition was determined to be $12,000. In Addition, Lonnie paid the contractor $5,000 to construct an entrance ramp to his home and $7,000 to widen the hallways to accommodate his wheelchair. Lonnies AGI for the year was $80,000. How much of these expenditures can Lonnie deduct as a medical expense.a.$10,000b.$16,000c.$22,000d.$40,000e.None of the above26.Edna had an accident while competing in a rodeo. She sustained facial injuries that required cosmetic surgery. While having the surgery done to restore her appearance, she had additional surgery done to reshape her chin, which was not injured in the accident. The surgery to restore her appearance cost $9,000 and the surgery to reshape her chi cost $6,000. How much of Ednas surgical fees will qualify as a deductible medical expense( before application of the 7.5% limitation)?a.$0b.$6,000c.$9,000d.$15,000e.None of the above
Posted 2 years ago in Arthritis by huachinanga
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