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1. Which of the following is NOT true? a. NOL carryforwards are indefinitely and carrybacks are not allowed. b. Business meals are deductible. c. NOL carryforwards can deduct up to 80% of taxable income. d. Business entertainment is deductible.

1. Which of the following is NOT true? a. NOL carryforwards are indefinitely and carrybacks are not allowed. b. Business meals are deductible. c. NOL carryforwards can deduct up to 80% of taxable income. d. Business entertainment is deductible.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Which of the following is NOT true? a. NOL carryforwards are indefinitely and carrybacks are not allowed. b. Business meals are deductible. c. NOL carryforwards can deduct up to 80% of taxable income. d. Business entertainment is deductible. 2. Which of the following is NOT true? a. Individual taxpayers claim the loss of worthless securities in the year when the stock became worthless as capital loss. b. Individual taxpayers can claim the casualty loss in the year of damage or amend the prior year return as an itemized deduction. c. Related party loss is not deductible. d. The amount of deductible casualty loss for a completely destroyed business property is the lesser of adjusted basis of the property or the decline in fair market value. 3. Which of the following is true for IRAs and 401(k)? a. The maximum amount of annual contributions to IRA and 401(k) are the same. b. Roth IRA contribution is the deduction for AGI. c. Traditional IRA contribution is the deduction from AGI. d. Qualified withdraw from Roth IRA is tax-free 4. A single taxpayer with $74,000 of AGI, for 2022. How much is his/her contribution to a traditional IRA is non-deductible? Assume the employer offers a 401k plan and he/she contributed to the maximum amount.
Transcribed Image Text:1. Which of the following is NOT true? a. NOL carryforwards are indefinitely and carrybacks are not allowed. b. Business meals are deductible. c. NOL carryforwards can deduct up to 80% of taxable income. d. Business entertainment is deductible. 2. Which of the following is NOT true? a. Individual taxpayers claim the loss of worthless securities in the year when the stock became worthless as capital loss. b. Individual taxpayers can claim the casualty loss in the year of damage or amend the prior year return as an itemized deduction. c. Related party loss is not deductible. d. The amount of deductible casualty loss for a completely destroyed business property is the lesser of adjusted basis of the property or the decline in fair market value. 3. Which of the following is true for IRAs and 401(k)? a. The maximum amount of annual contributions to IRA and 401(k) are the same. b. Roth IRA contribution is the deduction for AGI. c. Traditional IRA contribution is the deduction from AGI. d. Qualified withdraw from Roth IRA is tax-free 4. A single taxpayer with $74,000 of AGI, for 2022. How much is his/her contribution to a traditional IRA is non-deductible? Assume the employer offers a 401k plan and he/she contributed to the maximum amount.
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