Accounting Question

Show your work to answer the questions. They are fill in the blank.

For fill in answers in dollar values:
○
Do not include any symbols (like $ (as will already
be in question text next to fill in), commas for
thousands/millions, or decimals).
○ Enter all expenditure amounts requested as well
as depreciation, amortization, and depletion
answers as positive values.
○ Do not include any extra spaces before or after
numbers as correct answers must match the
solution characters exactly
○ Round to the nearest whole dollar
○ Examples:
■ An answer of $101,000.41 would be typed
in as 101000
■ An answer of $101,000.52 would be
rounded up to the next dollar and typed in
as 101001
● For fill in answers in percentages:
○ Do not use any other symbols (like % (as will
already be in question text next to fill in), commas
for thousands/millions, or decimals) – just include
numbers
○ Do not include any extra spaces before or after
numbers as correct answers must match the
solution characters exactly
○ Round to the nearest whole percentage
○ Examples:
■ An answer of 24.435% would be typed in
as 24
■ An answer of 24.515% would be typed in
as 25
● For multiple choice, choose the BEST answer from the
choices available.
Results Displayed
Question 1
1 – part a.
For the following scenario, determine the total depreciation
amount for 2024 assuming the taxpayer opted out of Sec.
179 and bonus if they were available in the year of
purchase. In addition, assume all taxpayers use a
calendar year tax period and that the property mentioned
was the only property purchased in the year of acquisition.
Fill in the blank: A bank purchased a new building for its
headquarters, totaling $2 million on April 1, 2021.
Total depreciation for 2024 is $_______.
Question 2
1 – part b.
For the following scenario, determine the total depreciation
amount for 2024 assuming the taxpayer opted out of Sec.
179 and bonus if they were available in the year of
purchase. In addition, assume all taxpayers use a
calendar year tax period and that the property mentioned
was the only property purchased in the year of acquisition.
Fill in the blank: A dentist purchased 10 new chairs and a
couch for the waiting room, which cost $3,000 on
October 15, 2024. Total depreciation for 2024 is
$_______.
Question 3
1 – part c.
For the following scenario, determine the total depreciation
amount for 2024 assuming the taxpayer opted out of Sec.
179 and bonus if they were available in the year of
purchase. In addition, assume all taxpayers use a
calendar year tax period and that the property mentioned
was the only property purchased in the year of acquisition.
Fill in the blank: A restaurant purchased booths and
chairs totaling $15,000 on November 1, 2024 and
kitchen equipment costing $4,000 on June 15, 2024.
Total depreciation for 2024 is $_______.
Question 4
1 – part d.
For the following scenario, determine the total depreciation
amount for 2024 assuming the taxpayer opted out of Sec.
179 and bonus if they were available in the year of
purchase. In addition, assume all taxpayers use a
calendar year tax period and that the property mentioned
was the only property purchased in the year of acquisition.
Fill in the blank: A telemarketing company purchased a
separate computer, office chair, and desk for each of
its new staff on January 15, 2023. The total costs for
the computers, office chairs, and desks were $30,000,
$3,000, and $8,000, respectively. Total depreciation
for 2024 is $_______.
Question 5
1 – part e.
For the following scenario, determine the total depreciation
amount for 2024 assuming the taxpayer opted out of Sec.
179 and bonus if they were available in the year of
purchase. In addition, assume all taxpayers use a
calendar year tax period and that the property mentioned
was the only property purchased in the year of acquisition.
Fill in the blank: A moving company purchased a
lightweight truck, which cost $38,650 on March 8,
2020. Total depreciation for 2024 is $_______.
Question 6
2.
A hair salon purchases a new computer for the checkout
desk on October 21, 2022 for $1,500, which was the only
property it purchased that year. The firm sells the
equipment on October 3, 2024.
Fill in the blank: Assume the firm always opts out of Sec.
179 and bonus if available and uses a calendar year
tax period. The total depreciation the firm has for the
computer in 2024 is $_______.
Question 7
3.
A textile company purchased the following assets throughout
2024:
Asset
Placed in
service
Initial Basis
Land for mill
January 1
$1,000,000
Mill building
January 1
$300,000
Equipment (new)
March 4
$1,800,000
Small used truck
for deliveries
June 8
$25,000
Total
$3,125,000
Fill in the blank: Assume that the land and mill building
do not qualify as qualified real property for Sec. 179
and that the company has sufficient taxable income
that it creates no binding limitation on any potential
Sec. 179 expense (if applicable). The maximum total
depreciation expense possible that the corporation
may deduct in 2024 is $_______.
Question 8
4 – part a.
Google acquired the assets of a small company on May 1,
Year 1 for $20 million where $3 million of it was ultimately
allocated to the tax basis of a patent the small company
had held. At the date of purchase, the patent had a
remaining life (until the patent’s expiration date) of exactly
5 years (60 months).
Fill in the blank: The total amount of amortization that
Google can recognize in Year 1 for the patent is
$_______.
Question 9
4 – part b.
In part a, Google acquired the assets of a small company on
May 1, Year 1 for $20 million where $3 million of it was
ultimately allocated to the tax basis of a patent the small
company had held. At the date of purchase, the patent
had a remaining life (until the patent’s expiration date) of
exactly 5 years (60 months).
Fill in the blank: Based on the discussion in your text
(and my notes), if Google had instead directly
purchased the patent alone from the company for $3
million instead of purchasing it along with the rest of
the assets of the small company for a single purchase
price, the appropriate amortization for Year 1 in this
alternative scenario is $_______.
Question 10
5 – part a – i.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Fill in the blank: The total amount of the start-up costs
expenditures is $_______.
Question 11
5 – part a – ii.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Fill in the blank: The total amount of organizational
expenditures is $_______.
Question 12
5 – part b – i.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Ignore your answer in a. Assume that the total amount
of start-up costs expenditure is $48,200 and the total
amount of the organizational expenditure is $17,900.
Fill in the blank: The amount of the start-up costs the
partnership may immediately expense in Year 1 is
$_______.
Question 13
5 – part b – ii.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Ignore your answer in a. Assume that the total amount
of start-up costs expenditure is $48,200 and the total
amount of the organizational expenditure is $17,900.
Fill in the blank: The amount of organizational
expenditures the partnership may immediately
expense in Year 1 is $_______.
Question 14
5 – part c – i.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Ignore your answer in a. Assume that the total amount
of start-up costs expenditure is $48,200 and the total
amount of the organizational expenditure is $17,900.
Also, assume that the company immediately
expensed $5,000 of start-up costs and $5,000
organizational cost.
Fill in the blank: The amount the partnership can deduct
as amortization expense for the organizational
expenditures in Year 1 (not including the amount it
immediately expensed) is $_______.
Question 15
5 – part c – ii.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Ignore your answer in a. Assume that the total amount
of start-up costs expenditure is $48,200 and the total
amount of the organizational expenditure is $17,900.
Also, assume that the company immediately
expensed $5,000 of start-up costs and $5,000
organizational cost.
Fill in the blank: The amount the partnership can deduct
as amortization expense for the start-up costs in
Year 1 (not including the amount it immediately
expensed) is $_______.
Question 16
5 – part d – i.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Ignore your answer in a. Assume that the total amount
of start-up costs expenditure is $48,200 and the total
amount of the organizational expenditure is $17,900.
Also, assume that the company immediately
expensed $5,000 of start-up costs and $5,000
organizational cost.
Fill in the blank: The total amount of deduction allowed
for organizational expenses in Year 1 (including both
the portion immediately expensed and relevant
amortization of remaining expenses) if Robert started
a sole proprietorship instead of a partnership is
$_______.
Question 17
5 – part d – ii.
Robert started an accounting firm in Year 1 and organized
as a partnership. Performance of services began on July
1, Year 1. The following expenditures were associated
with the partnership’s activities in Year 1:
Expense
Date
Amount
April 1-June 30
rent
March 1
$15,000
June 1-June 30
wages
June 30
$25,000
April 1-June 30
utilities
June 30
$800
Legal fees for
partnership
agreements
June 25
$12,500
July 1-Sept. 30
rent
July 1
$15,000
July 1-July 31
wages
July 31
$50,000
July 1-Sept. 30
utilities
Sept. 30
$1,600
Ignore your answer in a. Assume that the total amount
of start-up costs expenditure is $48,200 and the total
amount of the organizational expenditure is $17,900.
Also, assume that the company immediately
expensed $5,000 of start-up costs and $5,000
organizational cost.
Fill in the blank: The total amount of deduction allowed
for start-up costs in Year 1 (including both the
portion immediately expensed and relevant
amortization of remaining expenses) if Robert started
a sole proprietorship instead of a partnership is
$_______.