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NEW QUESTION: 1
On December 1, 1997, Krest, a self-employed cash basis taxpayer, borrowed $200,000 to use in her business. The loan was to be repaid on November 30, 1998. Krest paid the entire interest amount of
$24,000 on December 1, 1997. What amount of interest was deductible on Krest's 1997 income tax return?
A. $22,000
B. $24,000
C. $2,000
D. $0
Answer: C
Explanation:
Explanation
Choice "b" is correct. Cash basis taxpayers deduct interest in the year paid or the year to which the interest relates, whichever is later. Even though all of the interest on this loan was paid on December
1, 1997, only the interest relating to December 1997 can be deducted in 1997. The question does not give an interest rate, but because the loan is to be repaid in a lump sum at maturity, 1/12 of the interest, or $2,000 applies to each month.
Choice "a" is incorrect. Because $2,000 of the interest relates to 1997, this amount is deductible in
1997.
Choice "c" is incorrect. This is the amount that cannot be deducted until 1998, the year to which the interest relates. Be sure to read questions like this very carefully, because if you had simply misread the question as seeking the amount deductible in 1998, you would get the question wrong despite understanding the rule.
Choice "d" is incorrect. Cash basis taxpayers can deduct interest in the year paid or the year to which the interest relates, whichever is later, thus 11 months of the interest will not be deductible until
1998.
NEW QUESTION: 2
A Chief Information Securiy Officer (CISO) is reviewing technical documentation from various regional offices and notices some key differences between these groups. The CISO has not discovered any governance documentation. The CISO creates the following chart to visualize the differences among the networking used.
Which of the following would be the CISO's MOST immediate concern?
A. There are open standards in use on the network.
B. Network engineers have ignored defacto standards.
C. Network engineers are not following SOPs.
D. The network has competing standards in use.
Answer: B
NEW QUESTION: 3
A solution architect must migrate a Windows internet information Services (IIS) web application to AWS. The application currently relies on a file share hosted in the user's on-premises network-attached storage (NAS). The solution architected has proposed migrating the IIS web servers Which replacement to the on-promises filo share is MOST resilient and durable?
A. Migrate the file Share to Amazon RDS.
B. Migrate the tile share to Amazon Elastic File System (Amazon EFS)
C. Migrate the tile Share to AWS Storage Gateway
D. Migrate the file Share to Amazon FSx dor Windows File Server.
Answer: D