Janelle receives a sterling silver tea set valued at $500 from her employer during her

to provide transportation to a job site.II.A car used for personal purposes.III.An apartment building rented out for the production of rental income.IV.A personal-use computer of the taxpayer.( )

：A.Only statement II is correct

B.Statements II and IV are correct

C.Only statement I is correct

D.Statements I and III are correct

E.All of the assets are depreciable

Determine the year-end adjusted basis of Roberto's 1/2 interest in theHalifax Partnership.At the beginning of the year, Roberto's adjustedbasis is $80, 000.The net operating profit of the partnership is$90, 000.Also, Halifax distributes $15,000 of cash to Roberto.( )

：A.$65,000

B.$110,000

C.$140,000

D.$155,000

E.$185,000

The Business Purpose Concept meansI.that the economic purpose of the

transaction must exceed the tax avoidance motive.II.that the taxpayer's dominant motive for an expenditure is to reduce taxation.( )

：A.Only statement I is correct

B.Only statement II is correct

C.Both statements are correct

D.Neither statement is correct

A.Congress

B.The Secret Service

C.The Federal Reserve Bank

D.The Treasury Department

E.The Federal Bureau of Investigation

emiums of all of its employees.Because of large deductible levels and limitations on the payment of certain medical expenses, the basic health insurance policy does not cover all medical costs.During the current year, Silvertone adopted a Cafeteria Plan funded entirely by Silvertone.The plan provides for $3,000 per employee, and Cindy elects $2,500 for her medical costs not covered by the basic policy.She takes the remaining $500 in cash.Actual payments for Cindy’s medical care of $1,500 are made from the Cafeteria Plan.I.Cindy's gross income is increased by the $1,000 of the $2,500 allocation not used for

additional medical expenses.II.Cindy’s gross income is increased by the $1,500 paid out of the Cafeteria Plan.( )

：A.Only statement I is correct

B.Only statement II is correct

C.Both statements are correct

D.Neither statement is correct

The Data Company employs John and Jesse.John has worked for Data for

4 years, whereas Jesse has worked for the company for only 18 months.Both are 27 years old.I.John must be eligible to participate in Data’s qualified pension plan.II.Jesse must be eligible to participate in Data’s qualified pension plan.( )

：A.Only I is correct

B.Only II is correct

C.Both statements are correct

D.Neither statement is correct

Rosa is a single parent who maintains a home in Durham in which she and her 16-year-old daughter, Maria, reside.She also provides most of the support for her son, Carmelo, age 25, who is a full-time student at Duke Law School, lives at home, and earns $3,500 as a part-time waiter at a local diner.Which of the following statements is true related to Rosa's tax return?( )

：A.Neither Maria or Carmelo is a qualifying child of Rosa's

B.Both Maria and Carmelo are qualifying children of Rosa's

C.Maria is a qualifying relative while Carmelo is a qualifying child of Rosa's

D.Carmelo is a qualifying relative while Maria is a qualifying child of Rosa's

ission on the sale and has an adjusted basis of $8,000 on the stock.I.The amount realized from the sale is $15,900.II.Marilyn has a recognized gain of $8,000.( )

：A.Only statement I is correct

B.Only statement II is correct

C.Both statements are correct

D.Neither statement is correct

A.Only statement I is correct

B.Only statement II is correct

C.Both statements are correct

D.Neither statement is correct

r after 8 years of service.Under Gardner's pension plan she can retire at 60% of the average of her three highest consecutive years' salary.Her average for the highest consecutive years' salary was $30, 000.What is the maximum amount Sonya can receive from Gardner's pension plan?( )

：A.$6,000

B.$14,400

C.$18,000

D.$24,000

E.$30,000