*
Interactive-Training-Session-
X
.
Frankie
got
a
sales
position
v
L
S
VACYE
Lol
2150
i
B
.
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Question
29
The
return
that
Greg
can
expect
on
a
tax-advantaged
investment
depends
on
s
structure
and
type.
If
Greg
is
looking
for
maximum
tax
benefits,
he
should
expect:
@
reduced
appreciation
and
increased
cash
flows
@
reduced
cash
flows
and
increased
appreciation
(©)
increased
appreciation
and
increased
cash
flows
Question
30
Betty
operates
a
butcher
shop
s
a
sole
proprietorship.
Last
year, the
butcher
shop
had
sales
of
$400,000
and
expenses
of
$180,000.
Betty
withdrew
$80,000
from
th
unt
to
meet
her
living
expenses.
Which
of
the
following
statements
is
TRUE?
(®)
Bety
had taxabie
income
of
$80,000.
Betty
had taxable
income
of
$180,000.
@
The
bus
ad
gross
profit
of
$220,000.
The
business
had
expenses
of
$80,000.
Question
31
Billy
and
Bob
decided
to
leave
their
salaried
positions
to
start
a
general
partnership.
Which
of
the
following
statements
are
FALSE?
1.
They
may
be
able
to
reduce
their
personal
income
taxes
during
the
start-up
years.
2.
They
can
deduct
partnership
losses
from
their
other
sources
of
income.
3.
They
may
be
able
to
realize
a
tax
deferral
on
their
business
income.
4.They
will
have
limited
personal
liability
for
the
debts
of
the
business.
@lannz
1and2
©
200
Question
32
Edgar
borrowed
$200,000
and
used
the
funds
to
purchase
the
preferred
shares
of
a
company.
He held
the
investment
for
the
entire
year.
Assuming
an
interest
rate
of
5.08%,
what
amount
can
he
deduct
as
an
allowable
interest
expense?
@)
s200000
$5,080
©
Nil
®
soie0
@
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