3) If an activity is considered a hobby, which of the following is true?
4) $179 expense is available for all of the following business assets
except:
5) Brad and Kate receive $9,500 for rent from Mike and Janet, who
are renting their home in Santa Ana, California. Brad and Kate do not
use this property for personal use. The rent covers eight months from
August 1 of the current year to March 31 of the following year. The
amount also includes a security deposit of $1,500. How much should
Brad and Kate report as rental income in the current tax year?
6) The adjusted basis of an asset is:
7) Samantha is a full-time author and recently published her 8th
romance novel. The royalty income she receives from the publisher
this year should be reported on what schedule?
8) Patrice sells a parcel of land for $50,000 cash and the buyer
assumes Patrice’s liability of $7,000 on the land. Patrice’s basis in the
land is $40,000. What is the gain or loss she will recognize on the sale?
9) Jane and Don own a Chalet in Lake Tahoe and rented it for 12 days
for $8,000. The rest of year, the Chalet was used by them and their
friends and family. What is the proper tax treatment of $8,000?
10) Renita purchased 500 shares in Prompt Messenger services for
$12,000 on November 21, 2007. The company went bankrupt on June
13, 2008, with no hope of recovery for the shareholders. On what date
is the stock deemed to be worthless and what is the nature of loss?
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ACC 401 Week 4 Assignment Chapter 9, Problem 42
problem 49 (UOP)