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-Paul is a self-employed CPA who maintains a qualifying office in his home. Paul has $100,000 gross income from his practice and incurs $90,000 in salaries, supplies, computer services, etc. Paul's mortgage interest and real estate taxes allocable to the office total $6,000. Other expenses allocable to the home office total $10,000 and consist of depreciation, utilities, insurance, and maintenance. What is Paul's total home office expense deduction?

A) $10,000

B) $16,000

C) $26,000

D) $100,000

-Characteristics of profit-sharing plans include all of the following with the exception of:

A) A predetermined formula is used to allocate employer contributions to individual employees and to establish benefit payments.

B) The company must make contributions to the plan if it has profits during the year.

C) Forfeitures of benefits under the plan may be reallocated to the remaining participants.

D) Annual employer contributions are not required, but substantial, recurring contributions must be made to satisfy the requirement that the plan be permanent

-Kareem is a 53-year-old an unmarried taxpayer who is not an active participant in an employer-sponsored qualified retirement plan. Before IRA contributions, his AGI is $64,000 in 2018. What is the maximum amount he may contribute to a tax deductible IRA?

A) $0.

B) $2,000

C) $5,500

D) $6,500

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