If a lease is classified as a capital lease because the lease agreement contains a bargain purchase option, the time period to be used by the lessee to amortize the leased property is
A) the lease term.
B) the expected economic life of the property.
C) the lease term or the expected economic life of the property, whichever is shorter.
D) the maximum amortization period for intangible assets.
B
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Which of the following situations describes a disclosure of tax return information by a tax return preparer that would subject the preparer to a penalty?
A. A grandfather's tax information is made available to his granddaughter to inform her that she will be claimed as a dependent on the grandfather's return. B. An employee of the tax return preparer makes corporate return information available to shareholders. C. After a client files for bankruptcy, the tax return preparer provides a copy of the last return filed to the court-appointed fiduciary without written permission. D. None of the answers are correct.
Alicia has a tax credit of $100 and a marginal tax rate of 28%. Alicia's income tax will be reduced by how much as a result of the credit?
A) $28 B) $128 C) $100 D) None of the above; her taxes will increase by $100.