Exam 3 (Final Exam) LCCC with complete solutions 2024

expectation of profit test (B) correct answerswhich of the following is not a test for the deductibility of a business expense? A. ordinary and necessary test B. expectation of profit test C. reasonableness test D. business purpose test an attorney who uses his Porsche for calling on clients (D) correct answerswhich of the following taxpayers may use the standard mileage method of calculating transportation costs? A. a taxi driver who owns a fleet of six cars for hire B. a taxpayer who used accelerated depreciation on his automobile C. a business executive who claimed bonus depreciation in the first year she used the car D. an attorney who uses his Porsche for calling on clients E. none of the above the cost of all of the airfare and the business days should be deducted, while the cost of the personal days are not deductible (C) correct answersJoe is a self employed information technology consultant from San Francisco, CA. he takes a week long trip to Chicago primarily for business. he takes two personal days to go to museums and see the sights of Chicago. how should he treat the expenses related to this trip? A. one hundred percent of the trip should be deducted as a business expense since the trip was primarily for business B. fifty percent of the trip should be deducted as a business expense since the IRS limits such business expenses to 50 percent of the actual cost C. the cost of all of the airfare and the business days should be deducted, while the cost of the personal days are not deductible D. none of the expenses are deductible since there was an element of personal enjoyment in the trip