Question 29 of 75. Which of the following is an advantage of selling property using the installment sale method? Spreading the gain over the years of payment may help lower the taxpayer's capital gain tax. The seller is shielded from losses in the event the buyer fails to make all the payments. The seller has immediate access to the funds. Accounting for the sale is generally easy and efficient.
Question 29 of 75.
Which of the following is an advantage of selling property using the installment sale method?
Spreading the gain over the years of payment may help lower the taxpayer's
The seller is shielded from losses in the event the buyer fails to make all the payments.
The seller has immediate access to the funds.
Accounting for the sale is generally easy and efficient.
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Question 30 of 75.
In June 2020, Patrice purchased and placed into service a $12,000 piece of equipment for exclusive use in her business. She claimed the special
$3,000 capital gain; $0 ordinary income.
$0 capital gain; $15,000 ordinary income.
$3,000 capital gain; $12,000 ordinary income.
$15,000 capital gain, $0 ordinary income.
Question 31 of 75
Warren is a home builder who is subject to the uniform capitalization rules. During the year, he incurred the following costs. All of these expenses must be capitalized EXCEPT:
×$60,000 spent for advertising on social media.
$600,000 wages and salaries, paid to job site supervisors.
$2,500,000 spent to hire construction contractors.
$6,500,000 spent on building materials.
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Question 32 of 75
Which of the following statements about shareholders of a C corporation is TRUE?
All of a C corporation's income, deductions, and credits are passed through directly to the shareholders.
The amount of losses shareholders may have to sustain is unlimited.
Shareholders of a C corporation are taxed only when the corporation distributes earnings and profits.
Shareholders of a C corporation pay a flat tax rate of 21% on all profits distributed to them.
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