What two forms must johnice file for business

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Reference no: EM131922923

Question: 1a. Steve worked as a tech supervisor for a computer company. In September of 2016, he was laid off. He was paid unemployment compensation for the rest of the year totaling $7,000. Which of the following is true?

a. Steve will have to report all $7,000 of the unemployment compensation as income.

b. Steve will have to report $4,600 of the unemployment compensation as income.

c. Unemployment compensation is never taxable.

d. As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable.

1b. In the current year, Johnice started a profitable bookkeeping business as a sole proprietor. Johnice made $38,000 in her first year of operation. What two forms MUST Johnice file for her business?

a. Schedules A and C

b. Schedules D and E

c. Schedule SE and C

d. Schedules B and C

1c. Which of the following is not a test to deduct business expenses:

a. The expense must be ordinary and necessary

b. The expense must have a legitimate business purpose

c. The expense must be reasonable

d. The expense must be lavish and extravagant

Reference no: EM131922923

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