Elise Is a Self-Employed Business Consultant Who Operates Her Business

question 155

Multiple Choice

Elise is a self-employed business consultant who operates her business out of an office in her home. The home office passes the qualifying tests for deducting office in the home expenses. For the current tax year, Elise earns $90,000 from her business activities. She incurs $82,000 in supplies, travel expenses, wage expense, etc. Elise's mortgage interest and real estate taxes allocable to the home office space were determined to be $9,000. Also, other expenses including insurance, repairs and maintenance, utilities, and depreciation allocable to the home office space total $11,000. How much of the other expenses (insurance, repairs, etc.) can Elise deduct?

• A)$- 0 -
• B)$2,000
• C)$8,000
• D)$9,000
• E)$11,000

Interpret the accounting standards (GAAP) related to asset capitalization, depreciation, and amortization.

Appreciate the differences in financial reporting and tax considerations regarding asset capitalization and depreciation.

Understand the principles and types of pesticides, including insecticides and rodenticides.

Comprehend the approaches and effectiveness of integrated pest management (IPM).

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Definitions:

Intrinsic Benefits

Advantages or positive outcomes that are inherent or naturally occurring from an activity, such as personal satisfaction or enjoyment.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Performance Management

The ongoing process of communication and feedback between a supervisor and an employee to ensure the achievement of organizational goals.

Annual Performance Appraisal

A yearly review and evaluation of an employee's job performance and overall contribution to a company.