1.

Which of the following expenditures is most likely to be deductible for a trading business?

	A.	A traffic ticket payment
	B.	A late filing tax penalty
	C.	A bribery to a government representative to obtain a better price for raw materials
	D.	A payment to a foreign official to expedite an application for a business permit
	E.	Personal property tax paid to the local government

2.

Sean and Mary are married and they file a joint tax return. Mary had a very high salary but Sean did not work during the year. Which of the following statements is true?

	A.	They likely pay no tax marriage penalty nor receive a tax marriage benefit
	B.	They likely pay a tax marriage penalty
	C.	They likely receive a tax marriage benefit
	D.	They likely will pay a tax marriage penalty and receive a tax marriage benefit
	E.	None of the above

3.

Jay's truck was damaged in an car accident. The truck was purchased for $41,000 and the adjusted basis was $19,000 at the time of the accident. The truck was repaired at a cost of $4,500 and insurance reimbursed Jay $2,000 of this cost. What is the amount of Jay's casualty loss deduction?

	A.	$19,000
	B.	$2,000
	C.	$3,000
	D.	$2,500
	E.	$4,500