High School

Susan purchased a 2018 Toyota Camry on 3/1/2019 for $15,000. She sold it on 6/1/2021 for $15,000 after depreciating it by $500. She sold no other assets during the year. Susan recognizes $500 ordinary income.

Select one:
- True
- False

---

Helen's records for the current year contain the following information:

- She donated IBM stock that she purchased 5 years ago for $3,000 when it had a FMV of $5,000 to the American Lung Association.
- She donated 20 hours of her time as a professional nurse to First Presbyterian Church. She bills her time to patients at $50 per hour.
- She also donated $7,500 cash to a qualified charitable organization.
- She paid her Home Owner's Association $1,000.

Patrick's adjusted gross income for the year is $100,000. What is the amount of his charitable contribution deduction?

a. $12,500
b. $11,500
c. $10,500
d. $13,500

---

Shira is single and 48 years old. She contributed $10,000 to a traditional IRA plan. The balance of the account before the distribution was $20,000. She distributed $5,000 this year for a first-time home purchase. Shira's only income this year was from a salary of $20,000. Assume Shira is in the 22% tax bracket. Shira's tax on the distribution is $1,100 ($5,000 x 0.22), but there is no 10% penalty.

Select one:
- True
- False

---

Kyle purchased a new Honda Accord on 9/1/2021. He paid $25,000 plus $3,000 sales tax. In 2021, he drove 3,000 miles for business and 4,000 miles for personal purposes. Kyle's depreciation deduction is the lower of the following two amounts:

i. \(\frac{3000}{7000} \times \$28,000 \times \frac{1}{5} \times \frac{1}{2}\)
ii. \(\frac{3000}{7000} \times \$10,200\)

Select one:
- True
- False

---

Shiela purchased land for $100,000 on 5/1/2000. She gifted it to her daughter Marion on 10/1/2020 when the land had a FMV of $80,000. Marion sold it on 9/1/2021 for $70,000. Marion recognizes a STCL of $10,000.

Select one:
- True
- False

---

Harris works for Richardson Corp for 6 years. Richardson has a defined benefit plan. Each employee earns 1.5% of their average salary for their highest 3 years of salary. Harris has a salary of $100,000 for each of the 6 years. Richardson uses a 5-year cliff-vesting schedule. Harris is entitled to a vested benefit of $9,000 which he will receive annually on retirement.

Select one:
- True
- False

Answer :

Susan purchased a 2018 Toyota Camry on 3/1/2019 for $15,000. She sold it on 6/1/2021 for $15,000 after depreciating it by $500. She sold no other assets during the year. Susan recognizes $500- ordinary income.

This statement is True. Susan has sold her Toyota Camry at the same price at which she bought, after taking a depreciation of $500 which means the selling price was actually $500 more than the value at which it was being sold, thus the depreciation is recognized as ordinary income. The term "ordinary income" refers to regular income, which is typically received from an employer, self-employment earnings, or investments.

Ordinary income is typically taxed at a higher rate than other types of income, such as capital gains. Hence, the given statement is true. Other statements: Helen's records for the current year contain the following information: - She donated IBM stock that she purchased 5 years ago for $3,000 when it had an FMV of $5000 to the American Lung Association.

What is the amount of his charitable contribution deduction? The amount of his charitable contribution deduction is $11,500. The total amount of the contribution made by Helen is $3,000 (stock) + $7,500 (cash) + $1,000 (HOA payment) = $11,500. Shira is single and 48 years old. She contributed $10,000 to a traditional IRA plan. The balance of the account before the distribution was $20,000. She distributed $5,000 this year for a first-time home purchase. Shira's only income this year was from salary or $20,000. Assume Shira is in the 22% bracket. Shira's tax on the distribution is $1100 ($5000 x .22), but there is no 10% penalty. The statement is True.

To know more about investments visit:

https://brainly.com/question/15105766

#SPJ11