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qualifies for a 22% depletion rate. Gross income from the property
was $150,000, and net income before the percentage depletion
deduction was $100,000. What is Carrie's tax preference for excess
depletion? (Points : 5)
Question 5.5. (TCOs 3, 4, 5, & 7) During the past two years, through
extensive advertising and improved customer relations, Beech
Corporation estimated that it had developed customer goodwill worth
$100,000. For the current year, determine the amount of goodwill
Beech Corporation may amortize. (Points : 5)
Question 6.6. (TCOs 3, 4, 5, & 7) Damien, not a dealer in real estate,
sold real estate with a basis of $250,000 for $500,000 cash, a note for
$250,000, and the buyer assumed Damien's mortgage on the property
of $125,000. During the year, the purchaser paid Damien $30,000
principal and $72,000 interest on the note and paid $6,000 principal
and $18,000 interest on the mortgage he assumed. The contract price
for the above transaction is what amount? (Points : 5)
Question 7.7. (TCOs 3, 4, 5, & 7) Which of the following is not an
itemized deduction allowed for AMT purposes? (Points : 5)
Question 8.8. (TCOs 3, 4, 5, & 7) Alex works as an auditor for a
major CPA firm. During the months of August and September of each
year, he is permanently assigned to the team auditing of
Hummingbird Corporation. As a result, every day he drives from his
home to Hummingbird and returns home after work. Mileage is as
follows:
Question 9.9. (TCOs 7, 8, & 9) Matt and Shanekwa, ages 45 and 44,
respectively, file a joint tax return for 2012. They provided all of the
support for their 24-year-old son, who had $2,500 of gross income.
Their 23-year-old daughter, a full-time student until her graduation on
June 14, 2012, earned $6,000, which was 45% of her total support
during 2012. Her parents provided the remaining support. Matt and
Shanekwa also provided total support for Shanekwa's father who is a
citizen and life-long resident of Portugal. How many personal and
dependency exemptions can Matt and Shanekwa claim on their 2012
income tax return? (Points : 5)
Question 10.10. (TCOs 2, 8, & 9) Shaquille operates a drug-running
operation and incurred the following expenses