Complete the following:
1. Jan, who is an employee, drove her automobile a total of 40,000 business miles in 2011. She also has receipts for business-related use as follows:
Parking
$500
Fuel
900
Tolls
200
Jan receives no reimbursement from her employer. Jan has an AGI for the year of $50,000 and no other itemized deductions. If Jan uses the standard mileage method, she can deduct from AGI (after limitations)
$19,600.
$20,100.
$21,000.
$22,000.
2. Norman traveled to San Francisco for four days on vacation, and while there spent another two days conducting business for his employer. Norman's plane fare for the trip was $500; meals cost $150 per day; hotels cost $300 per day; and a rental car cost $150 per day that was used for all six days. Norman was not reimbursed by his employer for any expenses. Norman's AGI for the year is $40,000 and he did not have any other miscellaneous itemized deductions. Norman may deduct (after limitations)
$250.
$800.
$1,050.
$1,200.
3. Steven is a representative for a textbook publishing company. Steven attends a convention which will also be attended by many potential customers. During the week of the convention, Steven incurs the following costs in entertaining potential customers.
Meal costs
$ 1,500
Entertainment of customers
3,500
Having recently been to a company seminar on the new tax laws, Steven makes sure that business is discussed at the various dinners, and that the entertainment is on the same day as the different dinners. Steven is reimbursed $2,000 by his employer under an accountable plan. Steven's AGI for the year is $50,000, and while he itemizes deductions, he has no other miscellaneous itemized deductions. What is the amount and character of Steven's deduction after any limitations? $500 from AGI
$500 for AGI
$2,000 from AGI
$2,000 for AGI
4.Brett, an employee, makes the following gifts, none of which are reimbursed:
Brett's supervisor
$30
Brett's secretary
40
4 customers ($27 each)
108
Gift wrapping customer gifts
10
What amount of the gifts is deductible before application of the 2% of AGI floor for miscellaneous itemized deductions? $135
$150
$170
$180
5.Bill obtained a new job in Boston. He incurred the following moving expenses:
Transportation of household goods and personal effects
$2,600
Cost of transporting Bill's family
2,000
House-hunting trip
1,700
Payments to lessor to cancel a lease
500
Assuming Bill is entitled to deduct moving expenses, what is the amount of the deduction? $2,600
$4,600
$6,300
$6,800
6. Vincent is a university professor who accepts a visiting position at another university for six months and obtains a leave of absence from his current employer. Vincent spends the following amounts at the new location:
Furnished apartment
$ 4,800
Meals
3,000
Vincent has AGI for the year of $50,000. Vincent's deductible travel expenses, after the 2% limitation, are $800.
$1,300.
$5,300.
$6,300.
7. Gwen traveled to New York City on a business trip for her employer. Gwen spent 4 days in business meetings and conferences and then spent 2 days sightseeing in the area. Gwen's plane fare for the trip was $250. Meals cost $160 per day. Hotels and other incidental expenses amounted to $250 per day. For the days spent sightseeing, Gwen rented an automobile at $60 per day. Gwen was not reimbursed by her employer for any expenses. Her AGI for the year is $50,000 and she itemizes but has no other miscellaneous itemized deductions. Gwen may deduct (after limitations)
$570.
$890.
$1,487.
$1,570.
8. Gayle, a doctor with significant investments in the stock market, traveled on a cruise ship to attend a general business seminar that was held at a hotel in a foreign country. The cost of the cruise for four days is $2,500. Gayle can deduct $0.
$1,250.
$2,000.
$2,500.
9. Donald takes a new job and moves to a new residence. The distances are as follows:
Old residence to new job
70 miles
Old residence to old job
8 miles
By how many miles does the move exceed the minimum distance requirement for the moving expense deduction? 12 miles
20 miles
62 miles
none of the above
10. Fran, who is self-employed, drove her automobile a total of 35,000 business miles in 2011. She also has receipts for business-related use as follows:
Parking
$500
Fuel
900
Tolls
200
Fran has an AGI for the year of $50,000. If Fran uses the standard mileage rate method, she can deduct
$1,600.
$17,550.
$18,550.
None of the above.