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NEW QUESTION: 1
Baum, an unmarried optometrist and sole proprietor of Optics, buys and maintains a supply of eyeglasses and frames to sell in the ordinary course of business. In 1999, Optics had $350,000 in gross business receipts and its year-end inventory was not subject to the uniform capitalization rules.
Baum's 1999 adjusted gross income was $90,000 and Baum qualified to itemize deductions. During
1999, Baum recorded the following information:
Business expenses:

What amount should Baum report as 1999 net earnings from self-employment?
A. $273,000
B. $243,250
C. $281,750
D. $252,000
Answer: C
Explanation:
Explanation
Choice "d" is correct. Baum should report $281,750 as 1999 net earnings from self-employment (line
12 of the Form 1040), calculated as follows:

Choices "a", "b", and "c" are incorrect. Self-employment tax and self-employment health insurance expenses are adjustments from total gross income. They are not deducted from self-employment earnings (i.e., not reported net on line 12 of the Form 1040).
Note: There are many distracters in this question, all relating to items that are either deductible as part of itemized deductions or not deductible. Be careful to read the requirement of the question before spending unnecessary time on the question. The statement that Baum's year-end inventory was not subject to the uniform capitalization rules is a distracter as well. There is not enough information given in the facts to apply the rules if he had been subject to them.

NEW QUESTION: 2
In which order do the typical phases of the Software Development Life Cycle occur?
A. Design, requirements gathering, development, and testing
B. Requirements gathering, design, development, and testing
C. Development, design, requirements gathering, and testing
D. Design, development, requirements gathering, and testing
Answer: B

NEW QUESTION: 3
Drag and Drop Question
Drag and drop the DHCP client states from the left into the standard order in which the Client passes through them on the right.

Answer:
Explanation:

NEW QUESTION: 4

A. Option B
B. Option A
C. Option C
D. Option D
Answer: A
Explanation:
Reference:
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