1. On May 5, 2010, Jill purchased equipment (7-year property) for $40,000 to be used in her business. She did not elect to expense the equipment under Section 179 or bonus depreciation. On January 1, 2015, she sells the equipment to a scrap metal dealer. What is the cost recovery deduction for 2015?
a. $ 892.
b. $ 1,784.
c. $ 3,568 .
d. No deduction allowed.
2. On April 15, 2013, Andy purchased some furniture and fixtures(7-year property) for $10,000 to be used in his business. He did not elect to expense the equipment under §179 or bonus depreciation. On June 30, 2015, he sells the equipment. What is the cost recovery deduction for 2015?
a. $ 0.
b. $ 875.
c. $1,429.
d.$1,749.
3. Lawrence purchased an apartment building on February 10, 2015, for $330,000, $30,000 of which was for the land. What is the cost recovery deduction for 2015?
a.$0.
b. $ 6,741.
c.$ 9,546.
d.$10,660.
4. Roy purchased an office building on March 30, 2012, for $250,000. $25,000 of which was for the land. On July 30, 2015, he sold the office building. What is the cost recovery deduction for 2015?
a.$0.
b.$3,125.
c.$5,769.
d.$6,410
5. On June 30, 2015, Ken purchased an apartment building for $500,000. Determine the cost recovery deduction for 2015:
a.$4,925.
b.$5,335.
c.$6,955.
d.$9,850.
6. Frank purchased a vehicle for business and personal use. In 2015, he used the vehicle 70% for business (11,000 business miles incurred equally throughout the year) and calculated his vehicle expenses using the standard mileage rate. Frank also paid $1,800 in interest and $480 in county property tax on the car. What is the total business deduction related to business use of the car?
a. $6,325.
b. $6,360
c. $7,921..
d. $8,605..
7. The maximum tax bases and percentages for 2015for the two portions of the self-employment tax are which of the following?
……………..Social Security………………..Medicare
a. ………….118,500; 12.4%………….Unlimited; 2.9%.
b. ………….118,500; 12.4%………….Unlimited; 15.3%.
c. …………. 117,000; 12.4%………….Unlimited; 2.9%.
d. ………….117,000; 15.3%………….Unlimited; 15.3%.
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