H&R BLOCK EXAMS ESSENTIAL STUDY
QUESTIONS AND ANSWERS
◉ Major Winters, a member of the Army Reserve, traveled to a
location 250 miles from his home to perform his work in the reserve
in June 2018. His unreimbursed expenses consisted of $195 for
lodging and $268 for mileage. In addition, he incurred mileage
expenses of $235 throughout the yr. for trips to a location 20 miles
from his home. How much is Major Winters eligible to deduct on
SCH 1 (Form 1040), line 24, as an above-the-line adjustment?
Answer: A. $0
B. $268
C. $463
D. $698
Answer: C
◉ Kimberly originally files her 2017 return on February 19, 2018.
Under ordinary circumstances, what is the last day she can file an
amended 2017 return?
Answer: A. April 15, 2021
B. February 19, 2021
C. April 15, 2020
D. April 17, 2018
,Answer: A
◉ All of the following issues may be corrected or changed by filing
Form 1040X, Amended U.S. Individual Income Tax Return, EXCEPT:
Answer: A. The amount of deductible medical expenses was
reported incorrectly on the original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
D. A taxpayer who filed as a non-resident qualified for U.S. resident
status
Answer: B
◉ Michelle converted her personal residence to rental property in
2018. She purchased the property in 2014 for $110,000 of which
$10,000 was allocable to the land. Unfortunately, property values in
her neighborhood have declined over the past few yrs. On the date of
conversion, the FMV of the property was $98,000; $10,000 was
allocated to the land. Michelle's basis for depreciation in the
property is:
Answer: A. $88,000
B. $98,000
C. $100,000
D. $110,000
Answer: A
, ◉ Greg purchased a new machine for use in his business. He
incurred the following costs with the purchase; $2,000 cash paid,
$10,000 financed, a $500 delivery charge, and a $200 installation
charge. Greg's basis on the machine is _____________.
Answer: A. $2,000
B. $2,700
C. $12,000
D. $12,700
Answer: D
◉ All of the following decrease basis; EXCEPT:
Answer: A. Casualty restoration beyond bringing the property to
pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
Answer: A
◉ Wyatt, who is employed full-time as a software engineer,
sometimes uses his time and talent to assist worthy causes. In 2018,
he helped a local non-profit organization create a new website.
Although his primary object was to help the organization, the
directors insisted on compensating him. He received a Form 1099-
QUESTIONS AND ANSWERS
◉ Major Winters, a member of the Army Reserve, traveled to a
location 250 miles from his home to perform his work in the reserve
in June 2018. His unreimbursed expenses consisted of $195 for
lodging and $268 for mileage. In addition, he incurred mileage
expenses of $235 throughout the yr. for trips to a location 20 miles
from his home. How much is Major Winters eligible to deduct on
SCH 1 (Form 1040), line 24, as an above-the-line adjustment?
Answer: A. $0
B. $268
C. $463
D. $698
Answer: C
◉ Kimberly originally files her 2017 return on February 19, 2018.
Under ordinary circumstances, what is the last day she can file an
amended 2017 return?
Answer: A. April 15, 2021
B. February 19, 2021
C. April 15, 2020
D. April 17, 2018
,Answer: A
◉ All of the following issues may be corrected or changed by filing
Form 1040X, Amended U.S. Individual Income Tax Return, EXCEPT:
Answer: A. The amount of deductible medical expenses was
reported incorrectly on the original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
D. A taxpayer who filed as a non-resident qualified for U.S. resident
status
Answer: B
◉ Michelle converted her personal residence to rental property in
2018. She purchased the property in 2014 for $110,000 of which
$10,000 was allocable to the land. Unfortunately, property values in
her neighborhood have declined over the past few yrs. On the date of
conversion, the FMV of the property was $98,000; $10,000 was
allocated to the land. Michelle's basis for depreciation in the
property is:
Answer: A. $88,000
B. $98,000
C. $100,000
D. $110,000
Answer: A
, ◉ Greg purchased a new machine for use in his business. He
incurred the following costs with the purchase; $2,000 cash paid,
$10,000 financed, a $500 delivery charge, and a $200 installation
charge. Greg's basis on the machine is _____________.
Answer: A. $2,000
B. $2,700
C. $12,000
D. $12,700
Answer: D
◉ All of the following decrease basis; EXCEPT:
Answer: A. Casualty restoration beyond bringing the property to
pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
Answer: A
◉ Wyatt, who is employed full-time as a software engineer,
sometimes uses his time and talent to assist worthy causes. In 2018,
he helped a local non-profit organization create a new website.
Although his primary object was to help the organization, the
directors insisted on compensating him. He received a Form 1099-
