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NEW QUESTION: 1
In which two locations would an analyzer tool be found? (Choose two.)
A. Models
B. Categories
C. Results Workspace
D. Modules
Answer: C,D
NEW QUESTION: 2
QceanStor Dorado V6 supports SAS SSDs only.
A. False
B. True
Answer: A
NEW QUESTION: 3
On December 1, 1997, Krest, a self-employed cash basis taxpayer, borrowed $200,000 to use in her business. The loan was to be repaid on November 30, 1998. Krest paid the entire interest amount of
$24,000 on December 1, 1997. What amount of interest was deductible on Krest's 1997 income tax return?
A. $2,000
B. $24,000
C. $22,000
D. $0
Answer: A
Explanation:
Explanation
Choice "b" is correct. Cash basis taxpayers deduct interest in the year paid or the year to which the interest relates, whichever is later. Even though all of the interest on this loan was paid on December
1, 1997, only the interest relating to December 1997 can be deducted in 1997. The question does not give an interest rate, but because the loan is to be repaid in a lump sum at maturity, 1/12 of the interest, or $2,000 applies to each month.
Choice "a" is incorrect. Because $2,000 of the interest relates to 1997, this amount is deductible in
1997.
Choice "c" is incorrect. This is the amount that cannot be deducted until 1998, the year to which the interest relates. Be sure to read questions like this very carefully, because if you had simply misread the question as seeking the amount deductible in 1998, you would get the question wrong despite understanding the rule.
Choice "d" is incorrect. Cash basis taxpayers can deduct interest in the year paid or the year to which the interest relates, whichever is later, thus 11 months of the interest will not be deductible until
1998.
NEW QUESTION: 4
A. Option D
B. Option B
C. Option A
D. Option C
Answer: A