ACC 324 Midterm Exam Questions

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ACCT 324 Midterm Exam Solution https://hwguiders.com/downloads/acct-324-midterm-exam-solution/ ACCT 324 Midterm Exam Solution Question : (TCO 9) In terms of probability, which of the following taxpayers would least likely be audited by the IRS? Question : (TCO 9) A characteristic of fraud penalties is: Question : (TCO 1) Federal tax legislation generally originates in what body? Question : (TCO 1) Subchapter S covers which specific area of tax law? Question : (TCO 11) Kyle, whose wife died in December 2009, filed a joint tax return for 2009. He did NOT remarry, but has continued to maintain his home in which his two dependent children live. What is Kyle’s filing status regarding 2012? Question…show more content…
The car is used 70% for business and 30% for personal use (Assume that this percentage is maintained for the life of the car.). She does NOT elect to take additional first-year depreciation. Determine the cost recovery deduction for 2011. Question : (TCO 10) Which of the following is correct? Question : (TCO 10) On May 2, 2011, Karen places in service a new sports utility vehicle that costs $70,000 and has a gross vehicle weight of 6,300 lbs. The vehicle is used 40% for business and 60% for personal use. Determine the cost recovery deduction for 2011. Question : (TCO 10) Danielle owns a vacation cottage. During the current year, she rented it for $1,500 for 48 days, and lived in it for 12 days. How would any expenses be accounted for? Question : (TCO 3) During the year, Rick had the following insured personal casualty losses (arising from one casualty). Rick also had $18,000 AGI for the year. Question : (TCO 3) John had adjusted gross income of $60,000. During the year, his personal use summer home was damaged by a fire. Pertinent data with respect to the home…show more content…
Until 2008, the activity was profitable. Joy’s at-risk amount at the beginning of 2008 was $250,000. The activity produced losses of $100,000 in 2008, $80,000 in 2009, and $90,000 in 2010. During the same period, no passive income was recognized. How much is suspended under the at-risk rules and the passive loss rules at the beginning of 2011? Question : (TCO 3) Wes’ at-risk amount in a passive activity is $25,000 at the beginning of the current year. His current loss from the activity is $35,000, and he has no passive activity income. At the end of the current year, which of the following statements is incorrect? Question : (TCO 2) The installment method applies to which of the following sales with payments being made in the year following the year of sale? Question : (TCO 2) In 2010, Helen sold property and reported her gain by the installment method. Her basis in the property was $150,000 ($250,000 cost less $100,000 of depreciation). Helen sold the property for $375,000, with $75,000 due on the date of the sale and $300,000 (plus interest at the federal rate) due in 2011. Helen’s recognized installment sale gain in 2011

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