Day 3

Question 1

What is “Income” based on?

Answer 1

The value of money or the Fair Value of property received

MCQ-01609

Question 2

On a Sch C: are business meals deductible?

Answer 2

Yes 50%

Only food and beverage purchased from restaurants are 100% deductible in 2021 & 2022

MCQ-14692

Question 3

Uniform Capitalization Rules of Code Sec. 263A:

Answer 3

Apply to the following:

1. Real or tangible personal property produced by the taxpayer used in trade or business
2. Real or tangible personal property produced by the taxpayer for sale to customers
3. Real or tangible personal property acquired by the taxpayer for resale (taxpayer’s annual average gross receipts for the preceding three years exceeds $27 million)

MCQ-15643

Question 4

Uniform Capitalization Rules apply to capitalizing what expenses:

Answer 4

INVENTORY COSTS:
- Inventory
- Direct Materials
- Direct Labor
- Factory Overhead

WAREHOUSING COSTS:
- Quality Control
- Taxes (excluding income taxes)

REASEARCH Exp = Expensed

MCQ-01438