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• a.What is the amount of depreciation allowed in 2015 and 2016 if
Sec. 179 depreciation (first-year expense election) was not elected?
• b.What is the amount of depreciation allowed in 2015 and 2016 if
Sec. 179 was elected?
I:11-37
Allowable Taxable Year. For each of the following cases, indicate
whether the taxpayer has selected an allowable tax year in an initial
year. If the year selected is not acceptable, indicate what an acceptable
year would be.
• a.A corporation selects a January 15 year-end.
• b.A corporation selects a March 31 year-end.
• c.A corporation selects a year that ends on the last Friday in March.
• d.A partnership selects a year that ends on December 31 and has
three equal partners whose years end on March 31, April 30, and June
30.
• e.An S corporation selects a December 31 year-end.
I:11-41
Cash Basis Expenses. How much of the following expenses are
currently deductible by a cash basis taxpayer?
• a.Medical prescriptions costing $20 paid by credit card (medical
expenses already exceed the 10% of AGI floor).
• b.Prepaid interest (not related to points) of $200 on a residential
loan.