Sunday, July 10, 2011

BUS 585 Taxation Chapter 5 and 6

Chapter 5

25) Jim, a self-employed individual, takes an important customer to the hockey playoff. Although the face value of a ticket is only $70, he pays a scalper $400 for each ticket. Assuming all other requirements are met, how much can Jim deduct for the two tickets?


Chapter 6

28) David operates his business as a sole proprietorship. In 2009, he spends $20,000 for a new machine (7-year property). His business income, before consideration of any Section 179 deduction, is $17,000. David elects to expense $20,000 under Section 179. Calculate his total depreciation deduction for 2009.

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