Full Download pdf of Test Bank for McGraw Hill’s Taxation of Business Entities 2022 Edition, 13th Edition, Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver Ronald Worsham all chapter

Test Bank for McGraw Hill’s Taxation of
Business Entities 2022 Edition, 13th

Edition, Brian Spilker, Benjamin Ayers,
John Barrick, Troy Lewis, John
Robinson, Connie Weaver Ronald
Worsham
Go to download the full and correct content document:
https://testbankmall.com/product/test-bank-for-mcgraw-hills-taxation-of-business-entiti
es-2022-edition-13th-edition-brian-spilker-benjamin-ayers-john-barrick-troy-lewis-john
-robinson-connie-weaver-ronald-worsham/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
Test Bank for McGraw Hill’s Taxation of Individuals

2022 Edition, 13th Edition, Brian Spilker, Benjamin
Ayers, John Barrick, Troy Lewis, John Robinson, Connie
Weaver Ronald Worsham
https://testbankmall.com/product/test-bank-for-mcgraw-hills-
taxation-of-individuals-2022-edition-13th-edition-brian-spilker-
benjamin-ayers-john-barrick-troy-lewis-john-robinson-connie-
weaver-ronald-worsham/
Solution Manual for McGraw Hill’s Taxation of

Individuals 2022 Edition, 13th Edition, Brian Spilker,
Benjamin Ayers, John Barrick, Troy Lewis, John
Robinson, Connie Weaver Ronald Worsham
https://testbankmall.com/product/solution-manual-for-mcgraw-
hills-taxation-of-individuals-2022-edition-13th-edition-brian-
spilker-benjamin-ayers-john-barrick-troy-lewis-john-robinson-
connie-weaver-ronald-worsham/
Test Bank for McGraw Hill’s Essentials of Federal

Taxation 2022 Edition, 13th Edition, Brian Spilker,
Benjamin Ayers, John Barrick, Troy Lewis, John
Robinson, Connie Weaver Ronald Worsham
https://testbankmall.com/product/test-bank-for-mcgraw-hills-
essentials-of-federal-taxation-2022-edition-13th-edition-brian-
spilker-benjamin-ayers-john-barrick-troy-lewis-john-robinson-
connie-weaver-ronald-worsham/
Test Bank for Hill’s Taxation of Individuals and

Business Entities 2021 Edition, 12th Edition, Brian
Spilker, Benjamin Ayers, John Barrick, John Robinson,
Ronald Worsham, Connie Weaver Troy Lewis
https://testbankmall.com/product/test-bank-for-hills-taxation-of-
individuals-and-business-entities-2021-edition-12th-edition-
brian-spilker-benjamin-ayers-john-barrick-john-robinson-ronald-
Ronald Worsham Connie Weaver Troy Lewis
worsham-connie-weaver-troy-lew/

Ronald Worsham, Connie Weaver, Troy Lewis
worsham-connie-weaver-troy-l/
Solution Manual for Hill’s Taxation of Individuals and

Ronald Worsham, Connie Weaver, Troy Lewis
https://testbankmall.com/product/solution-manual-for-hills-
taxation-of-individuals-and-business-entities-2021-edition-12th-
edition-brian-spilker-benjamin-ayers-john-barrick-john-robinson-
ronald-worsham-connie-weaver-tr/
Solution Manual for Hill’s Taxation of Individuals and

Ronald Worsham Connie Weaver Troy Lewis
https://testbankmall.com/product/solution-manual-for-hills-
taxation-of-individuals-and-business-entities-2021-edition-12th-
edition-brian-spilker-benjamin-ayers-john-barrick-john-robinson-
ronald-worsham-connie-weaver-troy/
Solution Manual for McGraw-Hill’s Taxation of Business

Entities 2020 Edition, 11th Edition, Brian Spilker,
Benjamin Ayers, John Robinson, Edmund Outslay, Ronald
Worsham, John Barrick Connie Weaver
https://testbankmall.com/product/solution-manual-for-mcgraw-
hills-taxation-of-business-entities-2020-edition-11th-edition-
brian-spilker-benjamin-ayers-john-robinson-edmund-outslay-ronald-
⊚ true
⊚ false
4) Reasonable in amount means that expenditures can be exorbitant if the activity is

motivated by profit.
⊚ true
⊚ false
5) The test for whether an expenditure is reasonable in amount is whether the expenditure
was for an "arm's length" amount.
⊚ true
⊚ false
6) Illegal bribes and kickbacks are not deductible business expenses, but fines imposed by a
governmental unit are deductible as long as the fines are incurred in the ordinary course of
business.
⊚ true
⊚ false
7) Although expenses associated with illegal activities are not deductible, political
contributions can be deducted if the donation is not made to a candidate for public office.
Version 1 2
⊚ true
⊚ false
8) When a taxpayer borrows money and invests the loan proceeds in municipal bonds, the
interest paid by the taxpayer on the debt will not be deductible.
⊚ true
⊚ false
9) A business can deduct the cost of uniforms supplied to employees if the uniforms are not
suitable for normal wear.
⊚ true
⊚ false
10) Only half the cost of a business meal is deductible even if the meal is extravagant.
⊚ true
⊚ false
11) Taxpayers must maintain written contemporaneous records of business purpose when
traveling to claim a deduction for the expenditures.
⊚ true
⊚ false
Version 1 3
12) Ralph borrowed $4 million and used the proceeds in his Internet business. The interest on
this debt is not subject to an interest limitation if Ralph's business has average annual gross
receipts of $26 million or less for the prior three taxable years.
⊚ true
⊚ false
13) Adjusted taxable income for calculating the business interest limitation is defined as
taxable income of the taxpayer computed without regard to any item of income, gain, deduction,
or loss that is not properly allocable to a trade or business.
⊚ true
⊚ false
14) The deduction for business interest expense is limited to the sum of (1) business interest
income and (2) 30 percent of the adjusted taxable income of the taxpayer for the taxable year.
⊚ true
⊚ false
15) The deduction for business interest expense is limited to the sum of (1) business interest
income and (2) the adjusted taxable income of the taxpayer for the taxable year.
⊚ true
⊚ false
Version 1 4
16) A loss deduction from a casualty of a business asset is only available if the asset is
completely destroyed.
⊚ true
⊚ false
17) All taxpayers must account for taxable income using a calendar year.
⊚ true
⊚ false
18) A short tax year can end on any day of any month other than December.
⊚ true
⊚ false
19) A fiscal tax year can end on the last day of any month other than December.
⊚ true
⊚ false
Version 1 5
20) A business generally adopts a fiscal or calendar year by using that year-end on the first
tax return for the business.
⊚ true
⊚ false
21) Sole proprietorships must use the same tax year as the proprietor of the business.
⊚ true
⊚ false
22) Even a cash-method taxpayer must consistently use accounting methods that "clearly
reflect income" for tax purposes.
⊚ true
⊚ false
23) The 12-month rule allows taxpayers to deduct the entire amount of certain prepaid
business expenses.
⊚ true
⊚ false
24) The all-events test for income determines the period in which income will be recognized
for tax purposes.
Version 1 6
⊚ true
⊚ false
25) The full-inclusion method requires cash-basis taxpayers to include prepayments for goods
or services into realized income.
⊚ true
⊚ false
26) Uniform capitalization of indirect inventory costs is required for mostvery large
taxpayers.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
27) Individual proprietors report their business income and deductions on:
A) Form 1065.
B) Form 1120S.
C) Schedule C.
D) Schedule A.
E) Form 1041.
Version 1 7
28) According to the Internal Revenue Code §162, deductible trade or business expenses
must be which one of the following?
A) Incurred for the production of investment income

B) Ordinary and necessary
C) Minimized
D) Appropriate and measurable
E) Personal and justifiable
29) Which of the following expenditures is NOT likely to be allowed as a current deduction
for a landscaping and nursery business?
A) Cost of fertilizer
B) Accounting fees
C) Cost of a greenhouse
D) Cost of uniforms for employees
E) A cash settlement for trade name infringement
30) The IRS would most likely apply the arm's length transaction test to determine which of
the following?
A) Whether an expenditure is related to a business activity.

B) Whether an expenditure will be likely to produce income.
C) Timeliness of an expenditure.
D) Reasonableness of an expenditure.
E) All of the choices are correct.
31) Which of the following business expense deductions is most likely to be unreasonable in
amount?
Version 1 8
A) Compensation paid to the taxpayer's spouse in excess of salary payments to other
employees.
B) Amounts paid to a subsidiary corporation for services where the amount is in excess
of the cost of comparable services by competing corporations.
C) Cost of a meal with a former client when there is no possibility of any future benefits
from a relation with that client.
D) All of the choices are likely to be unreasonable in amount.
E) None of the choices are likely to be unreasonable in amount.
32) Which of the following is a true statement?
A) Interest expense is not deductible if the loan is used to purchase municipal bonds.
B) Insurance premiums are not deductible if paid for "key-employee" life insurance.
C) One-half of the cost of business meals is not deductible.
D) All of these choices are true.
E) None of the choices are true.
33) Which of the following expenditures is most likely to be deductible for a construction
business?
A) A fine for a zoning violation.

B) A tax underpayment penalty.
C) An "under the table" payment to a government representative to obtain a better price
for raw materials.
D) A contribution to the mayor's political campaign fund.
E) An arm's length payment to a related party for emergency repairs of a sewage line.
34) Which of the following is an explanation for why insurance premiums on a key employee
are not deductible?
Version 1 9
A) A deduction for the insurance premium would offset taxable income without the
potential for the proceeds generating taxable income.
B) The federal government does not want to subsidize insurance companies.
C) It is impractical to trace insurance premiums to the receipt of proceeds.
D) Congress presumes that all expenses are not deductible unless specifically allowed in
the Internal Revenue Code.
E) This rule was grandfathered from a time when the Internal Revenue Code disallowed
all insurance premiums deductions.
35) Paris operates a talent agency as a sole proprietorship, and this year she incurred the
following expenses in operating her talent agency. What is the total deductible amount of these
expenditures?
$1,000 tickets to the super bowl with a film producer where no business was discussed
$500 lunch with sister Nicky
$700 business dinner with a client but Paris forgot to keep any records (oops!)
$900 tickets to the opera with a client following a business meeting
A) $450
B) $900
C) $1,100
D) $1,200
E) $0
36) Dick pays insurance premiums for his employees. What type of insurance premium is not
deductible as compensation paid to the employee?
Version 1 10
A) Health insurance with benefits payable to the employee.
B) Whole life insurance with benefits payable to the employee's dependents.
C) Group-term life insurance with benefits payable to the employee's dependents.
D) Key-employee life insurance with benefits payable to Dick.
E) All of the choices are deductible by Dick.
A) Meals are never deductible as a business expense.

B) An employer can only deduct half of any meals provided to employees as
compensation.
C) The cost of business meals must be reasonable.
D) A taxpayer can only deduct a meal for a client if business is discussed during the
meal.
38) In order to deduct a portion of the cost of a business meal, which of the following
conditions must be met?
A) A client (not a supplier or vendor) must be present at the meal.

B) The taxpayer or an employee must be present at the meal.
C) The meal must occur on the taxpayer's business premises.
D) None of these choices is a condition for the deduction.
E) All of the choices are conditions for a deduction.
39) Which of the following is likely to be a business expense fully deductible in the current
year?
Version 1 11
A) Salaries in excess of the industry average paid to attract talented employees.
B) The cost of employee uniforms that can be adapted to ordinary personal wear.
C) A speeding fine paid by a trucker who was delivering a rush order.
D) The cost of a three-year subscription to a business publication.
E) None of the choices are likely to be deductible.
40) Holly took a prospective client to dinner at a restaurant, and after agreeing to a business
deal, they went to the theater. Holly paid $290 for the meal andseparately paid $250 for the
theater tickets, amounts that were reasonable under the circumstances. What amount of these
expenditures can Holly deduct as a business expense?
A) $540
B) $270
C) $290
D) $125
E) None—the meals and entertainment are not deductible except during travel.
41) Holly took a prospective client to dinner at a restaurant, and after agreeing to a business
deal, they went to the theater. Holly paid $420 for the meal and separately paid $198 for the
theater tickets, amounts that were reasonable under the circumstances. What amount of these
expenditures can Holly deduct as a business expense?
A) $618
B) $309
C) $420
D) $99
E) None—the meals and entertainment are not deductible except during travel.
Version 1 12
42) This year Clark leased a car to drive between his office and various work sites. Clark
carefully recorded that he drove the car 23,000 miles this year and paid $7,200 of operating
expenses ($2,700 for gas, oil, and repairs, and $4,500 for lease payments). What amount of these
expenses may Clark deduct as business expenses?
A) $7,200
B) Clark cannot deduct these costs because taxpayers must use the mileage method to
determine any transportation deduction.
C) $4,500
D) $2,700
E) Clark is not entitled to any deduction if he used the car for any personal trips.
43) Shelley is self-employed in Texas and recently attended a two-day business conference in
New Jersey. After Shelley attended the conference, she had dinner with an old friend who lived
nearby. Shelley documented her expenditures (described below). What amount can Shelley
deduct?
Airfare to New Jersey $ 2,000

Meals provided by the conference at the conference 220
Meal with an old friend 120
Lodging in New Jersey 450
Rental car 180
A) $2,850
B) $2,740
C) $1,850, if Shelley itemizes the deductions
D) All of these expenses are deductiblebut only if Shelley attends a conference in Texas.
E) None of the expenses are deductible because Shelley visited her friend.
44) Shelley is self-employed in Texas and recently attended a two-day business conference in
New Jersey. After Shelley attended the conference, she had dinner with an old friend who lived
nearby. Shelley documented her expenditures (described below). What amount can Shelley
deduct?
Version 1 13
Airfare to New Jersey $ 2,220
Meals provided by the conference at the conference 242
Meal with an old friend 132
Lodging in New Jersey 428
Rental car 202
A) $3,092
B) $2,971
C) $1,982, if Shelley itemizes the deductions
D) All of these expenses are deductible but only if Shelley attends a conference in
Texas.
E) None of the expenses are deductible because Shelley visited her friend.
A) Meals at restaurants, lodging, and incidental expenditures are fully deductible if the
taxpayer is away from home overnight while traveling on business.
B) Meals are deductible for an employee who is forced to work during the lunch hour.
C) When a taxpayer travels solely for business purposes, only half of the costs of travel
are deductible.
D) If travel has both business and personal aspects, the cost of transportation is always
deductible but the deductibility of lodging depends upon whether business is conducted that day.
E) None of the choices are true because business travel is not deductible.
46) Which of the following is a true statement about travel that has both business and
personal aspects?
Version 1 14
A) Transportation costs are always fully deductible.
B) Meals are not deductible for this type of travel.
C) Only half of the cost of meals and transportation is deductible.
D) Thededuction for the cost of lodging and incidental expenditures is limited to those
amounts incurred during the business portion of the travel.
E) None of the choices are correct.
47) John is a self-employed computer consultant who lives and works in Dallas. John paid for
the following activities in conjunction with his business. Whichof the following expenditures is
not deductible in any amount?
1.Dinner with a potential client where the client's business was discussed.
2.A trip to Houston to negotiate a contract.
3.A seminar in Houston on new developments in the software industry.
4.A trip to New York to visit a school chum who is also interested in computers.
A) 1 only
B) 2 only
C) 3 only
D) 4 only
48) Which of the following expenditures is completely deductible?
A) $1,000 spent on compensating your brother for a personal expense.

B) $50 spent on meals at restaurants while traveling on business.
C) $2,000 spent by the employer on reimbursing an employee for entertainment.
D) All of these expenses are fully deductible.
E) None of these expenses can be deducted in full.
Version 1 15
49) Ed is a self-employed heart surgeon who lives in Michigan and has incurred the
following reasonable expenses. How much can Ed deduct?
$1,000 in airfare to repair investment rental property in Colorado. Primary purpose is business.
$500 in meals at restaurants while attending a medical convention in New York.
$300 for tuition for an investment seminar, "How to pick stocks."
$100 for tickets to a football game with hospital administrators to celebrate successful
negotiation of a surgical contract earlier in the day.
The correct answer is _____.
A) $1,500 "for AGI"

B) $1,250 "for AGI" and $300 "from AGI"
C) $480 "for AGI"
D) $80 "for AGI" and $1,300 "from AGI"
50) Ed is a self-employed heart surgeon wholives in Michigan and has incurred the following
reasonable expenses. How much can Ed deduct?
$1,380 in airfare to repair investment rental property in Colorado. Primary purpose is business.
$540 in meals at restaurants while attending a medical convention in New York.
$320 for tuition for an investment seminar, "How to pick stocks."
$128 for tickets to a football game with hospital administrators to celebrate successful
negotiation of a surgical contract earlier in the day.
The correct answer is _____.
A) $1,920 "for AGI"

B) $1,700 "for AGI" and $334 "from AGI"
C) $514 "for AGI"
D) $108 "for AGI" and $1,700 "from AGI"
Version 1 16
51) Ronald is a cash-method taxpayer who made the following expenditures this year. Which
expenditure is completely deductible in this period as a business expense?
A) $4,000 for rent on his office, which covers the next 24 months.
B) $3,000 for a new watch for the mayor to keep "good relations" with city hall.
C) $2,500 for professional hockey tickets distributed to a customer to generate
"goodwill" for his business.
D) $55 to collect an account receivable from a customer who has failed to pay for
services rendered.
E) None of the choices are completely deductible.
52) George operates a business that generated revenues of $50 million and allocable taxable
income of $1.25 million. Included in the computation of allocable taxable income were
deductible expenses of $240,000 of business interest and $250,000 of depreciation. What is the
maximum business interest deduction that George will be eligible to claim this year?
A) $375,000
B) $522,000
C) $1,500,000
D) $300,000
E) $228,000
income of $1.37 million. Included in the computation of allocable taxable income were
deductible expenses of $246,000 of business interest and $256,000 of depreciation. What is the
maximum business interest deduction that George will be eligible to claim this year?
Version 1 17
A) $411,000
B) $561,600
C) $1,626,000
D) $334,200
E) $260,400
income of $560,000. Included in the computation of allocable taxable income were $900,000 of
business interest expense, $20,000 of business interest income, and $180,000 of depreciation.
What is the maximum business interest deduction that George will be eligible to claim this year?
A) $168,000
B) $560,000
C) $498,000
D) $506,000
E) $1,080,000
55) Which of the following is a true statement about the limitation on business interest
deductions?
A) Interest disallowed by this limitation is carried back three years and then forward
five years.
B) The limitation is calculated as a percentage of the taxpayer's gross receipts.
C) This limitation is not imposed on businesses with average annual gross receipts of
$26 million or less for the prior three taxable years.
D) All of the choices are false.
E) All of the choices are true.
Version 1 18
56) Adjusted taxable income is defined as follows for purposes of the business interest
limitation:
A) taxable income allocable to the business computed without regard to interest income;
depreciation, amortization, or depletion; interest expense; and net operating loss deductions.
B) 30 percent of revenue after deducting depreciation and interest expense.
C) taxable income allocable to debt invested in the business.
D) interest income after deducting 30 percent of all deductible expenses.
57) For purposes of the business interest limitation, adjusted taxable income is defined as
taxable income allocable to the business computed without regard to which of the following:
A) interest income, depreciation, amortization, or depletion; interest expense; and net

operating loss deductions.
B) 30 percent of revenue after deducting depreciation and interest expense.
C) debt invested in the business.
D) interest income after deducting 30 percent of all deductible expenses.
58) Riley operates a plumbing business, and this year the three-year-old van he used in the
business was destroyed in a traffic accident. The van was originally purchased for $20,000, and
the adjusted basis was $5,800 at the time of the accident. Although the van was worth $6,000 at
the time of accident, insurance only paid Riley $1,200 for the loss. What is the amount of Riley's
casualty loss deduction?
A) $6,000
B) $14,000
C) $5,800
D) $4,600
E) $5,300
Version 1 19
59) Riley operates a plumbing business, and this year the three-year-old van he used in the
business was destroyed in a traffic accident. The van was originally purchased for $23,200, and
the adjusted basis was $5,400 at the time of the accident. Although the van was worth $6,320 at
the time of accident, insurance only paid Riley $1,600 for the loss. What is the amount of Riley's
casualty loss deduction?
A) $6,320
B) $16,880
C) $5,400
D) $3,800
E) $5,060
60) Don operates a taxi business, and this year one of his taxis was damaged in a traffic
accident. The taxi was originally purchased for $32,000, and the adjusted basis was $2,000 at the
time of the accident. The taxi was repaired at a cost of $2,500 and insurance reimbursed Don
$700 of this cost. What is the amount of Don's casualty loss deduction?
A) $1,300
B) $2,500
C) $1,800
D) $2,000
E) Don is not eligible for a casualty loss deduction
61) Don operates a taxi business, and this year one of his taxis was damaged in a traffic
accident. The taxi was originally purchased for $19,500, and the adjusted basis was $1,400 at the
time of the accident. The taxi was repaired at a cost of $2,800 and insurance reimbursed Don
$736 of this cost. What is the amount of Don's casualty loss deduction?
Version 1 20
A) $664
B) $2,800
C) $2,064
D) $1,400
E) Don is not eligible for a casualty loss deduction
62) Which of the following cannot be selected as a valid tax year-end?
A) December 31 st
B) January 31 st
C) The last Friday of the last week of June
D) December 15 th
E) A tax year can end on any of these days.
63) Bill operates a proprietorship using the cash method of accounting, and this year he
received the following:
● $100 in cash from a customer for services rendered this year
● a promisefrom a customer to pay $200 for services rendered this year
● tickets to a football game worth $250 as payment for services performed last year
● a check for $170 for services rendered this year that Bill forgot to cash
How much income should Bill realize on Schedule C?
A) $100
B) $300
C) $350
D) $270
E) $520
Version 1 21
64) Bill operates a proprietorship using the cash method of accounting, and this year he
received the following:
● $190 in cash from a customer for services rendered this year
● a promise from a customer to pay $182 for services rendered this year
● tickets to a football game worth $205 as payment for services performed last year
● a check for $188 for services rendered this year that Bill forgot to cash
How much income should Bill realize on Schedule C?
A) $190
B) $372
C) $395
D) $378
E) $583
65) Clyde operates a sole proprietorship using the cash method. This year, Clyde made the
following expenditures:
$480 to U.S. Bank for 12 months of interest accruing on a business loan from September 1 of
this year through August 31 of next year even though only $160 of interest accrued this year.
$600 for 12 months of property insurance beginning on July 1 of this year.
What is the maximum amount Clyde can deduct this year?
A) $760
B) $600
C) $480
D) $160
E) $360
Version 1 22
66) Beth operates a plumbing firm. In August of last year, she signed a contract to provide
plumbing services for a renovation. Beth began the work that August and finished the work in
December of last year. However, Beth didn't bill the client until January of this year, and she
didn't receive the payment until March when she received payment in full. When should Beth
recognize income under the accrual method of accounting?
A) In August of last year

B) In December of last year
C) In January of this year
D) In March of this year
E) In April of this year
67) Jim operates his business on the accrual method, and this year, he received $4,000 for
services that he intends to provide to his clients next year. Under what circumstances can Jim
defer the recognition of the $4,000 of income until next year?
A) Jim can defer the recognition of the income if he absolutely promises not to provide
the services until next year.
B) Jim must defer the recognition of the income until the income is earned.
C) Jim can defer the recognition of the income if he has requested that the client not pay
for the services until the services are provided.
D) Jim can elect to defer the recognition of the income if the income is not recognized
for financial accounting purposes.
E) Jim can never defer the recognition of the prepayments of income.
68) When does the all-events test under the accrual method require the recognition of income
from the sale of goods?
Version 1 23
A) when the title of the goods passes to the buyer
B) when the business receives payment
C) when payment is due from the buyer
D) the earliest of the other three dates
69) Colbert operates a catering service on the accrual method. In November of year 1,
Colbert received a payment of $9,000 for 18 months of catering services to be rendered from
December 1 st of year 1 through May 31 stof year 3. When must Colbert recognize the income
if his accounting methods are selected to minimize income recognition?
A) $500 is recognized in year 1, $6,000 in year 2, and $2,500 in year 3.

B) $500 is recognized in year 1 and $8,500 in year 2.
C) $9,000 is recognized in year 3.
D) $2,500 is recognized in year 1 and $6,500 in year 2.
E) $9,000 is recognized in year 1.
70) Which of the following types of transactions does not result in the immediate recognition
of revenue or expense for a small business using the accrual method?
A) Sales of inventory on account

B) A note received from a customer in exchange for services rendered
C) Salaries paid to employees by check
D) Credit card payments from customers for services received
E) All of the choices will result in recognition of revenue or expense using the cash
method.
71) Which of the following types of expenditures is not subject to capitalization under the
UNICAP rules?
Version 1 24
A) Selling expenditures
B) Cost of manufacturing labor
C) Compensation of managers who supervise production
D) Cost of raw materials
E) All of the choices are subject to capitalization under the UNICAP rules
72) Kip started a wholesale store this year selling bulk peanut butter. In January of this year,
Kip purchased an initial five tubs of peanut butter for a total cost of $5,000. In July, Kip
purchased three tubs for a total cost of $6,000. Finally, in November Kip bought two tubs for a
total cost of $1,000. Kip sold six tubs by year-end. What is Kip's ending inventory under the
FIFO cost-flow method?
A) $12,000
B) $6,000
C) $5,000
D) $2,500
E) $1,000
73) Mike started a calendar-year business on September 1 st of this year by paying 12

monthsof rent on his shop at $1,000 per month. What is the maximum amount of rent that Mike
can deduct this year under each type of accounting method?
A) $12,000 under the cash method and $12,000 under the accrual method
B) $4,000 under the cash method and $12,000 under the accrual method
C) $12,000 under the cash method and $4,000 under the accrual method
D) $4,000 under the cash method and $4,000 under the accrual method
E) $4,000 under the cash method and zero under the accrual method
Version 1 25
74) Mike started a calendar-year business on September 1st of this year by paying 12 months
of rent on his shop at $850 per month. What is the maximum amount of rent that Mike can
deduct this year under each type of accounting method?
A) $10,200 under the cash method and $10,200 under the accrual method
B) $3,400 under the cash method and $10,200 under the accrual method
C) $10,200 under the cash method and $3,400 under the accrual method
D) $3,400 under the cash method and $3,400 under the accrual method
E) $3,400 under the cash method and zero under the accrual method
75) Which of the following is a payment liability?
A) Tort claims
B) Refunds
C) Insurance premiums
D) Real estate taxes
E) All of the choices are correct
76) Joe is a self-employed electrician who operates his business on the accrual method. This
year Joe purchased a shop for his business, and for the first time at year-end he received a bill for
$4,500 of property taxes on his shop. Joe didn't pay the taxes until after year-end but prior to
filing his tax return. Which of the following is a true statement?
A) If he elects to treat the taxes as a recurring item, Joe can accrue and deduct $4,500 of
taxes on the shop this year.
B) The taxes are a payment liability.
C) The taxes would not be deductible if Joe's business was on the cash method.
D) Unless Joe makes an election, the taxes are not deductible this year.
Version 1 26
77) Brad operates a storage business on the accrual method. On July 1, Brad paid $48,000 for
rent on his storage warehouse and $18,000 for insurance on the contents of the warehouse. The
rent and insurance cover the next 12 months. What is Brad's deduction for the rent and
insurance?
A) $48,000 for the rent and $18,000 for the insurance

B) $24,000 for the rent and $18,000 for the insurance
C) $24,000 for the rent and $9,000 for the insurance
D) $48,000 for the rent and $9,000 for the insurance
78) Ajax Computer Company is an accrual-method calendar-year taxpayer. Ajax has never
advertised in the national media prior to this year. In November of this year, however, Ajax paid
$1 million for television advertising time during a "super" sporting event scheduled to take place
in early February of next year. In addition, in November of this year the company paid $500,000
fora one-time advertising blitz during a professional golf tournament in April of next year. What
amount of these payments, if any, can Ajax deduct this year?
A) $1 million
B) $500,000
C) $1.5 million
D) $1.5 million only if the professional golf tournament is played before April 15
E) No deduction can be claimed this year
79) Ajax Computer Company is an accrual-method calendar-year taxpayer. Ajax has never
advertised in the national media prior to this year. In November of this year, however, Ajax paid
$2.9 million for television advertising time during a "super" sporting event scheduled to take
place in early February of next year. In addition, in November of this year the company paid
$2,400,000 for a one-time advertising blitz during a professional golf tournament in April of next
year. What amount of these payments, if any, can Ajax deduct this year?
Version 1 27
A) $2.90 million
B) $2.40 million
C) $5.30 million
D) $5.30 million only if the professional golf tournament is played before April 15
E) No deduction can be claimed this year
80) Big Homes Corporation is an accrual-method calendar-year taxpayer that manufactures

and sells modular homes. This year, for the first time Big Homes was forced to offer a rebate on
the purchase of new homes. At year-end, Big Homes had paid $12,000 in rebates and was liable
for an additional $7,500 in rebates to buyers. What amount of the rebates, if any, can Big Homes
deduct this year?
A) $12,000 because rebates are payment liabilities.

B) $19,500 because Big Homes is an accrual-method taxpayer.
C) $19,500 if this amount is not material, Big Homes expects to continue the practice of
offering rebates in future years, and Big Homes expects to pay the accrued rebates before filing
its tax return for this year.
D) $12,000 because the $7,500 liability is not fixed and determinable.
E) Big Homes is not entitled to a deduction because rebates are against public policy.
81) Big Homes Corporation is an accrual-method calendar-year taxpayer that manufactures

and sells modular homes. This year, for the first time Big Homes was forced to offer a rebate on
the purchase of new homes. At year-end, Big Homes had paid $13,600 in rebates and was liable
for an additional $8,300 in rebates to buyers. What amount of the rebates, if any, can Big Homes
deduct this year?
Version 1 28
A) $13,600 because rebates are payment liabilities.
B) $21,900 because Big Homes is an accrual-method taxpayer.
C) $21,900 if this amount is not material, Big Homes expects to continue the practice of
offering rebates in future years, and Big Homes expects to pay the accrued rebates before filing
its tax return for this year.
D) $13,600 because the $8,300 liability is not fixed and determinable.
E) Big Homes is not entitled to a deduction because rebates are against public policy.
82) Jones operates an upscale restaurant and he pays experienced cooks $35,000 per year.
This year, he hired his son as an apprentice cook. Jones agreed to pay his son $40,000 per year.
Which of the following is a true statement about this transaction?
A) Jones will be allowed to deduct $40,000 only if his son eventually develops into an
expert cook.
B) Jones will be allowed to accrue $40,000 only if he pays his son in cash.
C) Jones will be allowed to deduct $35,000 as compensation and another $5,000 can be
deducted as an employee gift.
D) Jones is not entitled to any business deduction until the son is an experienced cook.
83) Jones operates an upscale restaurant and he pays experienced cooks $40,000 per year.
This year, he hired his son as an apprentice cook. Jones agreed to pay his son $44,000 per year.
Which of the following is a true statement about this transaction?
Version 1 29
A) Jones will be allowed to deduct $44,000 only if his son eventually develops into an
expert cook.
B) Jones will be allowed to accrue $44,000 only if he pays his son in cash.
C) Jones will be allowed to deduct $40,000 as compensation and another $4,000 can be
deducted as an employee gift.
D) Jones is not entitled to any business deduction until the son is an experienced cook.
84) Manley operates a law practice on the accrual method and calendar year. At the
beginning of the year, Manley's firm had an allowance for doubtful accounts with a balance of
$15,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance
of doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense
this year?
A) $23,000
B) $3,000
C) $26,000
D) $5,000
E) $20,000
85) Manley operates a law practice on the accrual method and calendar year. At the
beginning of the year, Manley's firm had an allowance for doubtful accounts with a balance of
$13,900. At the end of the year, Manley recorded bad debt expense of $21,200 and the balance
of doubtful accounts had increased to $19,800. What is Manley's deduction for bad debt expense
this year?
A) $21,200
B) $5,900
C) $27,100
D) $1,400
E) $15,300
Version 1 30
86) Which of the following is NOT considered a related party for the purpose of limitation on
accruals to related parties?
A) Spouse when the taxpayer is an individual.

B) A partner when the taxpayer is a partnership.
C) Brother when the taxpayer is an individual.
D) A minority shareholder when the taxpayer is a corporation.
E) All of these are related parties.
87) Which of the following is a true statement about accounting for business activities?
A) An overall accounting method can only be adopted with the permission of the
commissioner.
B) An overall accounting method is initially adopted on the first return filed for the
business.
C) The cash method can only be adopted by individual taxpayers.
D) The accrual method can only be adopted by corporate taxpayers.
88) Which of the following is a true statement about impermissible accounting methods?
A) An impermissible method is adopted by using the method to report results for two
consecutive years.
B) An impermissible method may never be used by a taxpayer.
C) Cash-method accounting is an impermissible method for partnerships and Subchapter
S– electing corporations.
D) There is no accounting method that is impermissible.
Version 1 31
89) Todd operates a business using the cash basis of accounting. At the end of last year, Todd
was granted permission to switch his sales on account to the accrual method. Last year, Todd
made $420,000 of sales on account, and $64,000 was uncollected at the end of the year. What is
Todd's §481 adjustment for this year?
A) Increase income by $420,000

B) Increase income by $16,000
C) Increase expenses by $64,000
D) Increase expenses by $420,000
E) Todd has no §481 adjustment this year.
90) Todd operates a business using the cash basis of accounting. At the end of last year, Todd
was granted permission to switch his sales on account to the accrual method. Last year, Todd
made $422,500 of sales on account, and $65,000 was uncollected at the end of the year. What is
Todd's §481 adjustment for this year?
A) Increase income by $422,500

B) Increase income by $16,250
C) Increase expenses by $65,000
D) Increase expenses by $422,500
E) Todd has no &sect481 adjustment this year.
91) Which of the following is a true statement about a request for a change in accounting
method?
Version 1 32
A) Some requests are automatically granted.
B) Most requests require the permission of the commissioner.
C) Many requests require payment of a fee and a good business purpose for the change.
D) Form 3115 is typically required to be filed with a request for change in accounting
method.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
92) Smith operates a roof repair business. This year, Smith's business generated cash receipts
of $32,000, and Smith made the following expenditures associated with his business:
Advertising $ 500
Car and truck expenses 1,360
Depreciation 3,200
Employee compensation 5,000
Education 1,000
The education expense was for a two-week, nighttime course in business management. Smith
believes the expenditure should qualify as an ordinary and necessary business expense. What net
income should Smith report from his business? Smith is on the cash method and calendar year.
Version 1 33
93) Smith operates a roof repair business. This year, Smith's business generated cash receipts
of $33,895, and Smith made the following expenditures associated with his business:
Advertising $ 600
Car and truck expenses 1,280
Depreciation 3,248
Employee compensation 5,500
Education 3,000
The education expense was for a two-week, nighttime course in business management. Smith
believes the expenditure should qualify as an ordinary and necessary business expense. What net
income should Smith report from his business? Smith is on the cash method and calendar year.
94) Bryon operates a consulting business and he usually works alone. However, during the
summer Bryon will sometimes hire undergraduate students to collect data for his projects. This
past summer Bryon hired Fred, the son of a prominent businessman, for a part-time summer job.
The summer job usually pays about $17,000, but Bryon paid Fred $27,000 to gain favor with
Fred's father. What amount of Fred's summer wages can Bryon deduct for tax purposes? Bryon is
on the cash method and calendar year.
Version 1 34
95) Bryon operates a consulting business and he usually works alone. However, during the
summer Bryon will sometimes hire undergraduate students to collect data for his projects. This
past summer Bryon hired Fred, the son of a prominent businessman, for a part-time summer job.
The summer job usually pays about $17,600, but Bryon paid Fred $29,400 to gain favor with
Fred's father. What amount of Fred's summer wages can Bryon deduct for tax purposes? Bryon is
on the cash method and calendar year.
96) Werner is the president and CEO of Acme, Incorporated, and this year, he took a
prospective client to dinner. During the dinner, Werner and the client discussed a proposed
contract for over $6 million as well as personal matters. After dinner, Werner took the client to a
football game and no business was discussed. Werner paid $1,220 for an expensive(but not
extravagant) dinner at a restaurant and spent $600 for tickets to the game. What is the deductible
amount of these expenses?
Version 1 35
97) Crystal operates a business that provides typing and delivery services. This year, Crystal
spent $2,500 to purchase special shirts that identify her employees and provide some notoriety
for her business. The shirts are especially colorful and include logos on the front pocket and the
back. Besides salary payments, Crystal also compensates her employees by offering to pay
whole life insurance premiums for any that want to provide insurance coverage for their
beneficiaries. This year, Crystal paid $5,000 in life insurance premiums. What amount of these
payments can Crystal deduct? Crystal is on the cash method and calendar year.
98) Crystal operates a business that provides typing and delivery services. This year, Crystal
spent $2,570 to purchase special shirts that identify her employees and provide some notoriety
for her business. The shirts are especially colorful and include logos on the front pocket andthe
back. Besides salary payments, Crystal also compensates her employees by offering to pay
whole life insurance premiums for any that want to provide insurance coverage for their
beneficiaries. This year, Crystal paid $5,350 in life insurance premiums. What amount of these
payments can Crystal deduct? Crystal is on the cash method and calendar year.
Version 1 36
99) Judy is a self-employed musician who performs for a variety of events. This year, Judy
was fined $250 by the city for violating the city's noise ordinance with a relatively loud
performance. As a result, Judy contributed $1,000 to a campaign committee formed to recall the
city's mayor. Judy normally hires three part-time employees to help her schedule events and
transport equipment. Judy paid a total of $33,000 to her employees through June of this year. In
June, Judy fired her part-time employees and hired her husband to replace them. However, Judy
paid him $55,000 rather than $33,000. Judy is on the cash method and calendar year, and she
wants to know what amount of these expenditures is deductible as business expenses.
100) Judy is a self-employed musician who performs for a variety of events. This year, Judy
was fined $315 by the city for violating the city's noise ordinance with a relatively loud
performance. As a result, Judy contributed $870 to a campaign committee formed to recall the
city's mayor. Judy normally hires three part-time employees to help her schedule events and
transport equipment. Judy paid a total of $34,300 to her employees through June of this year. In
June, Judy fired her part-time employees and hired her husband to replace them. However, Judy
paid him $53,700 rather than $34,300. Judy is on the cash method and calendar year, and she
wants to know what amount of these expenditures is deductible as business expenses.
Version 1 37
101) Danny owns an electronics outlet in Dallas. This year, he paid $600 to register for a four-
day course in management in Chicago. Danny paid $800 in airfare and $1,000 for five nights'
lodging. After the course, Danny spent the last day sightseeing. During the trip, Danny also paid
$140 a day for meals at restaurants, and $80 a day for a rental car. What amount of these travel
expenditures may Danny deduct as business expenses?
102) Danny owns an electronics outlet in Dallas. This year, he paid $665 to register for a four-
day course in management in Chicago. Danny paid $735 in airfare and $740 for five nights’
lodging. After the course, Danny spent the last day sightseeing. During the trip, Danny also paid
$270 a day for meals at restaurants, and $210 a day for a rental car. What amount of these travel
expenditures may Danny deduct as business expenses?
103) Sam operates a small chain of pizza outlets in Fort Collins, Colorado. In November of
this year, Sam decided to attend a two-day management training course. Sam could choose to
attend the course in Denver or Los Angeles. Sam decided to attend the course in Los Angeles
and take an eight-day vacation immediately after the course. Sam reported the following
expenditures from the trip:
Version 1 38
Course Tuition $ 2,500
Airfare 800
Hotel (10 nights) 1,200
Rental car (10 days) 900
Meals at restaurants (10 days) 1,500
What amount of travel expenditures can Sam deduct?
104) Sam operates a small chain of pizza outlets in Fort Collins, Colorado. In November of
this year, Sam decided to attend a two-day management training course. Sam could choose to
attend the course in Denver or Los Angeles. Sam decided to attend the course in Los Angeles
and take an eight-day vacation immediately after the course. Sam reported the following
expenditures from the trip:
Course Tuition $ 2,650

Airfare 830
Hotel (10 nights) 1,500
Rental car (10 days) 870
Meals at restaurants (10 days) 1,800
What amount of travel expenditures can Sam deduct?
Version 1 39
105) Gabby operates a pizza delivery service. This year, she paid delivery personnel $18,000
in salary. She carefully documented the business use of the auto (11,700 miles this year), and her
$7,350 of vehicle expenses (for gas, oil, repairs, and auto lease payments). What amount of these
expenses may Gabby deduct as business expenses? Gabby is on the cash method and calendar
year.
106) Alvin is a self-employed sound technician who reports on the cash method and calendar
year. Alvin has a shop in Austin, Texas, but he spends much of his time away from his shop
traveling to and from various concerts around the country. Alvin leases a truck to move his
equipment around the country, and this year, he spent $12,000 in lease payments and paid
$18,000 for gas, oil, and repairs. Alvin keeps records of his personal use of the truck and he
estimates that 6,000 of the total 36,000 miles put on the truck this year were for personal trips.
What amount of these expenses may Alvin deduct as business expenses?
107) Sandy Bottoms Corporation generated $50,000,000 of revenue this year and reported
taxable income (before depreciation, interest expense, and any tax loss carryovers) of $1.3
million. Taxable income included $350,000 of interest income and interest expense of $1.25
million. What is Sandy Bottoms' maximum interest expense deduction for the year?
Version 1 40
108) Sandy Bottoms Corporation generated $50,000,000 of revenue this year and reported
taxable income (before depreciation, interest expense, and any tax loss carryovers) of $2.8
million. Taxable income included $380,000 of interest income and interest expense of $2.00
million. What is Sandy Bottoms' maximum interest expense deduction for the year?
109) Sandy Bottoms Corporation generated taxable income (before depreciation, interest
expense, and any tax loss carryovers) of $370,000. Taxable income included $70,000,000 of
revenue, $400,000 of interest expense and $50,000 of interest income. What is Sandy Bottoms'
maximum interest expense deduction for the year?
Version 1 41
110) Rock Island Corporation generated taxable income (before deductions for depreciation,
interest expense, and net operating loss carryovers) of $1 million this year. Taxable income was
computed on $50 million of revenues and included $50,000 of interest income. The company
paid $450,000 in interest expense. What is Rock Island's maximum business interest deduction
for the year?
interest expense, and net operating loss carryovers) of $2 million this year. Taxable income was
computed on $50 million of revenues and included $120,000 of interest income. The company
paid $453,500 in interest expense. What is Rock Island's maximum business interest deduction
for the year?
interest expense, and net operating loss carryovers) of $100,000. Taxable income was computed
on $50 million of revenues and included $5,000 of interest income and $40,000 in interest
expense. What is Rock Island's maximum business interest deduction for the year?
Version 1 42
113) Otto operates a bakery and is on the cash method and calendar year. This year, one of
Otto's ovens caught fire and was partially destroyed. Otto bought it a few years ago for $20,000
and claimed depreciation of $12,000 up to the fire. Otto was charged $4,400 for repairs to the
oven but the insurance company paid Otto $1,500 for the damage. What is Otto's casualty loss
deduction?
114) Otto operates a bakery and is on the cash method and calendar year. This year, one of
Otto's ovens caught fire and was partially destroyed. Otto bought it a few years ago for $24,500
and claimed depreciation of $12,900 up to the fire. Otto was charged $3,950 for repairs to the
oven but the insurance company paid Otto $1,725 for the damage. What is Otto's casualty loss
deduction?
Version 1 43
115) David purchased a deli shop on February 1st of last year and began to operate it as a sole
proprietorship. David reports his personal taxes using the cash method over a calendar year, and
he wants to use the cash method and fiscal year for his sole proprietorship. He has summarized
his receipts and expenses through January 31st of this year as follows:
Receipts Expenses
February through December last year $ 112,000 $ 84,500

January this year 10,400 6,200
What income should David report from his sole proprietorship?
116) David purchased a deli shop on February 1st of last year and began to operate it as a sole
proprietorship. David reports his personal taxes using the cash method over a calendar year, and
he wants to use the cash method and fiscal year for his sole proprietorship. He has summarized
his receipts and expenses through January 31st of this year as follows:
Receipts Expenses
February through December last year $ 113,100 $ 82,850

January this year 11,500 7,300
What income should David report from his sole proprietorship?
Version 1 44
st
117) Marilyn operates a day care center as a cash-method sole proprietorship. On August 1
of this year, Marilyn received a prepayment of $4,000 for child care services to be rendered
evenly over the next 20 months. How much income must Marilyn recognize this year if she is
attempting to minimize her tax burden?
118) Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1 st

of this year, Mike received $15,000 for three outfitting trips. This is the first time Mike agreed to
such a payment and he is obligated to outfit one trip per year for the next three summers,
beginning this year. How much income must Mike recognize in each of the next three years if he
is attempting to minimize his tax burden?
Version 1 45
119) Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1st
of this year, Mike received $18,000 for four outfitting trips. This is the first time Mike agreed to
such a payment and he is obligated to outfit one trip per year for the next four summers,
beginning this year. How much income must Mike recognize in each of the next four years if he
is attempting to minimize his tax burden?
120) Anne is a self-employed electrician who reports her business income using the accrual
method over a calendar year. On September 1 st of this year, Anne paid $2,280 of interest on a
loan. The interest accrues evenly over 19 months ($120 per month) from June 1 st of this year
through December 31 st of next year. In addition, on September 1 st Anne also paid $2,700 for
18 months of professional liability insurance ($150 per month). What amount of interest and
insurance can Anne deduct this year?
121) Anne is a self-employed electrician who reports her business income using the accrual
method over a calendar year. On September 1st of this year, Anne paid $2,660 of interest on a
loan. The interest accrues evenly over 20 months ($133 per month) from June 1st of this year
through December 31st of next year. In addition, on September 1st Anne also paid $3,097 for 19
months of professional liability insurance ($163 per month). What amount of interest and
insurance can Anne deduct this year?
Version 1 46
122) Bob operates a clothing business using the accrual method over a calendar year. In
October of last year, Bob contracted with his father, Tim, for consulting advice. Tim is a cash-
basis calendar-year taxpayer, and he billed Bob for $6,000 of consulting fees. This amount was
comparable to amounts charged by other consultants (a reasonable amount). Bob paid $2,500 of
the consulting fee by December 31 st of last year, but the remaining $3,500 was not paid until
January of this year. When can Bob deduct the consulting fee?
123) Colby Motors uses the accrual method and reports on a calendar year. In December of
last year, Colby acquired auto repair equipment. As part of the acquisition, Colby purchased a
warranty agreement that requires the seller of the equipment to provide repairs on the equipment
for three years. Colby paid the cost of the warranty, $15,000, in January of this year. What can
Colby deduct for the cost of the warranty on the tax return for last year?
Version 1 47
124) Ranger Athletic Equipment uses the accrual method and reports on a calendar year.
Ranger provides two-year warranties on all sales of equipment. This year, Ranger estimated
warranty expense for book purposes, and he accrued $1 million of warranty expenses. However,
during the year Ranger only spent $400,000 repairing equipment under the warranty. What can
Ranger deduct for warranty expense on the tax return for this year?
125) Blackwell Manufacturing uses the accrual method and reports on a calendar year. This
year, a customer was injured when visiting the Blackwell factory. The customer sued the
company for $500,000, and the case is still being litigated. However, Blackwell's attorney
expects that the company will pay at least $250,000 to settle the claim. What amount, if any, can
Blackwell deduct for the expected claim settlement this year?
126) Joe operates a plumbing business that uses the accrual method and reports on a calendar
year. This year, Joe signed a $50,000 binding contract with Brian. Under the contract, Brian will
provide Joe with up to 2,000 hours of vehicle repairs at $25 per hour. This year, Brian provided
200 hours of repair services and billed Joe for $5,000. At year-end, Joe had not paid Brian for the
services. What amount, if any, can Joe deduct for the repair services this year?
Version 1 48
127) Shadow Services uses the accrual method and reports on a calendar year. This year,
Shadow agreed to a uniform-cleaning contract with Odie Cleaning. Under the contract, Odie bills
Shadow for cleaning services as the services are provided. At year-end, Shadow paid Odie
$2,350 for the services rendered during the year. In addition, Shadow paid Odie $700 for
cleaning services expected in January of next year. What amount, if any, can Shadow deduct for
the cleaning services this year?
128) Murphy uses the accrual method and reports on a calendar year. This year, Murphy
signed a binding contract to provide consulting services to Kirby beginning next year. Murphy
incurred $15,000 to train his staff for this particular project. In addition, Murphy estimates that
he will incur another $60,000 to complete the Kirby contract. What amount, if any, can Murphy
deduct this year for the services expected to be rendered next year?
Version 1 49
129) Taffy Products uses the accrual method and reports on a calendar year. On July 1 st of
this year Taffy paid $48,000 for warehouse rent and $18,000 for insurance on the contents of its
warehouse. The rent and insurance cover the next 12 months. What amount, if any, can Taffy
deduct for rent and insurance this year?
Version 1 50
Answer Key
Test name: BU 1
1) TRUE
2) TRUE
3) FALSE
A necessary expense is an expense that is helpful or conducive to the

business activity.
4) FALSE
5) TRUE
6) FALSE
No deductions are allowed for expenditures that are against public

policy.
7) FALSE
8) TRUE
9) TRUE
Version 1 51
10) FALSE
11) TRUE
12) TRUE
13) FALSE
14) TRUE
15) FALSE
16) FALSE
17) FALSE
18) FALSE
19) TRUE
20) TRUE
21) TRUE
22) TRUE
23) TRUE
Version 1 52
24) TRUE
25) FALSE
26) TRUE
27) C
28) B
This is language from the IRC.

29) C
A greenhouse is likely to be capitalized rather than deducted as an

ordinary and necessary business expense.
30) D
Arm's length is the test used to determine whether an expenditure is

reasonable or exorbitant in amount.
31) D
All three situations involve suspicious payments to a related taxpayer

orpayments with personal benefits.
32) D
The deduction of each of the above expenditures is either limited or

prohibited altogether.
Version 1 53
33) E
All of the other alternatives are against public policy.

34) A
Expenses associated with the production of tax-exempt income are not

deductible.
35) E
To deduct the cost of meals associated with an entertainment activity,

the cost of the meal must be identified separately from the cost of the
entertainment. In all events, only half of the meal expense can be
deducted.
36) D
Since the life insurance proceeds are not included in Dick's income, the
premiums are classified as an expense associated with the production of
tax-exempt income.
37) C
Employee meals can be fully deductible as compensation, and meals

merely need to be associated with the conduct of business.
38) B
The taxpayer or employee must be present for a portion of the cost of the
meal to be deductible.
Version 1 54
39) A
The fine is against public policy, the three-year subscription must be

amortized, and uniforms are only deductible if not adaptable to ordinary
wear.
40) C
The cost of entertainment is not deductible. The cost of business meals

provided at restaurants is 100% deductible ($290 × 100% = $290).
41) C
The cost of entertainment is not deductible. The cost of business meals

provided at restaurants is 100% deductible ($420 × 100% = $420).
42) A
The costs are deductible and prorated between business and personal
use. Alternatively, in lieu of deducting these costs, Clark may simply
deduct a standard amount for the business mileage.
43) B
44) B
45) A
Version 1 55
When the travel has both business and personal aspects, the deductibility
of the transportation costs depends upon whether business is the primary
purpose for the trip. Meals at restaurants, lodging, and incidental
expenditures are fully deductible if the taxpayer is away from home
overnight while traveling on business.
46) D
Mixed-motive travel is prorated between business and personal

elements.
47) D
Thevisit to the school chum does not appear to be business related.

48) B
Business meals are only 100 percent deductible and entertainment is not
deductible.
49) A
The investment seminar and entertainment are not deductible, and 100
percent of the meal cost is deductible [$1,000 airfare + ($500 × 100% =
$500 meals) = $1,500 total deduction].
50) A
The investment seminar and entertainment are not deductible, and

100percent of the meal cost is deductible [$1,380 airfare + ($540 ×
100% = $540 meals) = $1,920 total deduction].
Version 1 56
51) D
The rent is prepaid and must be amortized, the watch is a bribe, the gift
is too expensive for deduction, and although a cash-method taxpayer
cannot deduct bad debts, amounts paid to collect those receivables are
fully deductible as an ordinary and necessary business expense.
52) B
($1,250,000 + 240,000 + 250,000) × 30% = $522,000. Note that George

can only deduct the interest that was actually paid.
53) B
($1,370,000 + 246,000 + 256,000) × 30% = $561,600. Note that George

can only deduct the interest that was actually paid.
54) D
55) C
Small businesses are not subject to the limitation.

56) A
Adjusted taxable income is allocable and computed without regard to

depreciation or amortization.
57) A
Version 1 57
Adjusted taxable income is computed without regard to interest income
or expense, depreciation or amortization, and net operating losses.
58) D
Adjusted basis less insurance reimbursement ($5,800 − $1,200).
59) D
Adjusted basis less insurance reimbursement ($5,400 − $1,600).
60) A
Lesser of adjusted basis or decline in value (repair cost) less insurance

reimbursement (Lesser of $2,500 or $2,000 = $2,000 − $700 = $1,300).
61) A
Lesser of adjusted basis or decline in value (repair cost) less insurance

reimbursement (Lesser of $2,800 or $1,400 = $1,400 − $736 = $664).
62) D
December 15 will not qualify for a fiscal or a 52/53-week year.

63) E
Income is realized as property is received, but the promise to pay is not

property ($100 + $250 + $170 = $520).
64) E
Version 1 58
Income is realized as property is received, but the promise to pay is not
property ($190 + $205 + $188 = $583).
65) A
$160 + $600 = $760. The interest can only be deducted as it accrues, so

only $160 is deductible. However, all of the insurance payment can be
deducted under the 12-month rule because the insurance does not extend
beyond the end of next year.
66) B
The income is earned when the all-events test is satisfied on the earliest
of the date that the service is provided, the service is billed, orthe
payment is received.
67) D
The deferral method can be elected for advance payments of unearned

service income if the income is also unearned for financial reporting.
68) D
The definition of all-events is when the right to income is fixed and

determinable on the earliest of the three dates listed.
69) B
Prepayments for services can be deferred for one year if the payments
are also unearned for financial reporting purposes. ($9,000 ÷ 18) × 1
month = $500.
Version 1 59
70) A
Sales of inventory need not be accounted for using the accrual method if
the taxpayer has average annual gross receipts of $26 million or less for
the prior three taxable years.
71) A
Selling, advertising, and research expenditures are not subject to

UNICAP.
72) C
Kip had $12,000 of goods available for sale. Under the FIFO method, he
sold all five tubs from January ($5,000) and one of the tubs from July
($2,000). Hence, his ending inventory consisted of $5,000 (two tubs
from July, $4,000, plus both tubs from November, $1,000). Note that
taxpayers (other than tax shelters) with average annual gross receipts of
$26 million or less over the three prior tax years can elect to use the cash
method of accounting for the purchase, production, or sale of
merchandise.
73) C
Mike can deduct 12 months of rent under the cash method by applying
the 12-month rule, whereas only four months of rent will accrue because
economic performance occurs ratably.
74) C
Version 1 60
Mike can deduct 12 months of rent under the cash method by applying
the 12-month rule, whereas only four months of rent will accrue because
economic performance occurs ratably.
75) E
This is a list of payment liabilities.

76) E
Joe can elect to deduct the taxes accruing this year or he can elect to
deduct them as recurring items. If neither election is made, then Joe
deducts them in the year paid.
77) B
Economic performance occurs for the rent ratably over time, so only
$24,000 is accrued ($2,000 per month). Insurance is a payment liability
and accrues only as paid. However, since the payment spans two periods
(six months this year and six months next year), the portion benefiting
the future period would typically be capitalized. In this case, the duration
of the contract does not exceed 12 months and the payment does not
extend beyond the end of next year. So, the 12-month rule allows for the
deduction of $18,000. Note that the 12-month rule cannot apply to the
rent until economic performance occurs, and this only happens ratably.
78) A
Version 1 61
Deduct $1 million, because under the three-and-a-half-month rule
payment for a service qualifies as economic performance when actual
performance (the service) is expected within three and a half months of
the date of payment. Note that the $500,000 might also be deductible if
it qualified as a recurring expense if Ajax committed to the ad campaign
in future years.
79) A
Deduct $2.90 million, because under the three-and-a-half-month rule

payment for a service qualifies as economic performance when actual
performance (the service) is expected within three and a half months of
the date of payment. Note that the $2,400,000 might also be deductible if
it qualified as a recurring expense if Ajax committed to the ad campaign
in future years.
80) C
This is the definition of a recurring item—not material in amount (or

better matching), expected to recur in the future, and paid before the
earlier of eight and a half months or the time the tax return is filed.
81) C
This is the definition of a recurring item—not material in amount (or

better matching), expected to recur in the future, and paid before the
earlier of eight and a half months or the time the tax return is filed.
82) E
Version 1 62
It is likely that Jones will be able to deduct something less than $35,000
as compensation. The remaining compensation will be unreasonable in
amount. The compensation will only be deductible in the period in
which Jones actually pays his son. Also, gifts are not deductible.
83) E
It is likely that Jones will be able to deduct something less than $40,000
as compensation. The remaining compensation will be unreasonable in
amount. The compensation will only be deductible in the period in
which Jones actually pays his son. Also, gifts are not deductible.
84) E
The $23,000 recorded as bad debt expense for financial accounting

purposes would have increased the allowance account; however, since
the allowance increased $3,000, actual write-offs were $20,000.
85) E
The $21,200 recorded as bad debt expense for financial accounting

purposes would have increased the allowance account; however, since
the allowance increased $5,900, actual write-offs were $15,300.
86) D
Family members, shareholders, C corporations if the shareholder owns

more the 50 percent of the corporation's stock, and owners of
partnerships and S corporations.
87) B
Version 1 63
An overall accounting method (cash or accrual) is initially adopted with
the first return filed for the business.
88) A
A permissible method is adopted by using the method for one year.

89) B
Todd has a positive §481 adjustment of $64,000, and this year only one-
quarter of the adjustment ($16,000) must be recognized.
90) B
Todd has a positive §481 adjustment of $65,000, and this year only one-
quarter of the adjustment ($16,250) must be recognized.
91) E
All of these reflect true statements about requests for changes in

accounting method.
92) $20,940 = $32,000 − $11,060.
All of the expenses are typical ordinary and necessary expenditures.
93) $20,267 = $33,895 − $13,628.
All of the expenses are typical ordinary and necessary expenditures.
Version 1 64
94) $17,000
Only $17,000 is deductible, and the remaining $10,000 is either

unreasonable in amount or against public policy (as a bribe).
95) $17,600
Only $17,600 is deductible, and the remaining $11,800 is either

unreasonable in amount or against public policy (as a bribe).
96) $1,220
The meal is 100 percent deductible, but the entertainment is not

deductible.
97) $7,500.
Uniforms are deductible if not adaptable to normal wear (as would be

the case with colorful logo shirts), and life insurance premiums (if not
key-employee policies) are deductible as compensation.
98) $7,920.
Uniforms are deductible if not adaptable to normal wear (as would be

the case with colorful logo shirts), and life insurance premiums (if not
key-employee policies) are deductible as compensation.
Version 1 65
99) $66,000.
The fine and political contribution are not deductible, asthey are against
public policy. The compensation of $33,000 for the part-time employees
is deductible. Wages paid to her husband of $33,000 would also be
deductible. However, the additional wages of $22,000 would appear to
be excessive and therefore not deductible.
100) $68,600.
The fine and political contribution are not deductible, as they are against
public policy. The compensation of $34,300 for the part-time employees
is deductible. Wages paid to her husband of $34,300 would also be
deductible. However, the additional wages of $19,400 would appear to
be excessive and therefore not deductible.
101) $3,280 = $600 + $800 + (4 nights × $200) + [4 × $140] + (4 ×

$80).
The trip is primarilyfor business, so the airfare is completely deductible.

Only four days' cost can be deducted for the lodging, meals, and auto
rental.
102) $3,912 = $665 + $735 + (4 nights × $148) + [4 × $270 ] + (4 ×
$210).
The trip is primarily for business so the airfare is completely deductible.

Only four days’ cost can be deducted for the lodging, meals, and auto
rental.
Version 1 66
103) $3,220 = 2,500 + (2 × $120) + (2 × $90) + [2 × $150].
The trip is primarily personal, so the airfare is not deductible. Only two
days' cost can be deducted for the lodging, meals, and auto rental.
104) $3,484 = $2,650 + (2 × $150) + (2 × $87) + [2 × $180].
The trip is primarily personal, so the airfare is not deductible. Only two
days’ cost can be deducted for the lodging, meals, and auto rental.
105) $25,35.
$25,350 = $18,000 salary plus $7,350 for transportation. Note that for
transportation Gabby can deduct $6,552 (56¢ a mile in 2021 × 11,700)
or she can choose to deduct actual costs of $7,350.
106) $25,000 = (30/36 × [$18,000 + $12,000]) or $16,800 = (30,000 ×
56¢ per mile in 2021).
Alvin can claim a proportionate amount of expenses or use the mileage

rate.
107) $1,010,000 = $350,000 + [30% × ($1,300,000 − $350,000 +

$1,250,000)].
The interest deduction is limited to interest income plus 30 percent of

allocable taxable income of $1.3 million less interest income plus
interest expense.
Version 1 67
108) $1,706,000 = $380,000 + [30% × ($2,800,000 − $380,000 +
$2,000,000)].
The interest deduction is limited to interest income plus 30 percent of

allocable taxable income of $2.8 million less interest income plus
interest expense.
109) $266,000 = $50,000 + [30% × ($370,000 − $50,000 + $400,000)].
The business interest deduction is limited to interest income plus 30

percent of allocable taxable income (before depreciation and interest
expense).
110) $335,000 = $50,000 + [30% × ($1,000,000 − $50,000)].
The business interest deduction is the amount of interest income plus 30

percent of the taxable income computed without regard to (1) any item
of income, gain, deduction, or loss that is not properly allocable to a
trade or business; (2) any business interest expense or business interest
income; (3) the amount of any net operating loss deduction; and (4)
deductions allowable for depreciation, amortization, or depletion.
111) $804,000 = $120,000 + [30% × ($2,400,000 − $120,000)].
The business interest deduction is the amount of interest income plus

30percent of the taxable income computed without regard to (1) any
item of income, gain, deduction, or loss that is not properly allocable to
a trade or business; (2) any business interest expense or business interest
Version 1 68
112) $45,500 = $5,000 + [30% × ($100,000 − $5,000 + $40,000)].
Maximum business interest deduction is $40,000 as actual interest

expense is less than the limit.
The business interest deduction is the amount of interest income plus 30

percent of the taxable income computed without regard to (1) any item
of income, gain, deduction, or loss that is not properly allocable to a
trade or business; (2) any business interest expense or business interest
113) ($2,900) = $1,500 − $4,400.
If a business asset is damaged but not completely destroyed, the amount

of the loss is the amount of the insurance proceeds ($1,500) minus the
lesser of (1) the asset's adjusted basis of $8,000 ($20,000 − $12,000) or
(2) the decline in the value of the asset due to the casualty (repairs) of
$4,400.
114) ($2,225) = $1,725 − $3,950.
If a business asset is damaged but not completely destroyed, the amount

of the loss is the amount of the insurance proceeds ($1,725) minus the
lesser of (1) the asset's adjusted basis of $11,600 ($24,500 − $12,900) or
(2) the decline in the value of the asset due to the casualty (repairs) of
$3,950.
115) $27,500 = $112,000 − $84,500.
A sole proprietorship must report on the same year-end as the

proprietor—in this case a calendar year.
Version 1 69
116) $30,250 = $113,100 − $82,850.
A sole proprietorship must report on the same year-end as the

proprietor—in this case a calendar year.
117) $4,000.
Prepayments are recognized as income in the year of receipt for cash-

method taxpayers.
118) Mike can elect to recognize $5,000 this year using the deferral
method, but he would need to recognize $10,000 next year (and zero the
following year).
The deferral method can be elected by accrual-method taxpayers in the

first year a prepayment is received if the method is also used for
financial accounting purposes. The deferral for services can last no
longer than the tax year following the receipt of the payment.
119) Mike can elect to recognize $4,500 this year using the deferral
method, but he would need to recognize $13,500 next year (and zero the
following year).
The deferral method can be elected by accrual-method taxpayers in the

first year a prepayment is received if the method is also used for
financial accounting purposes. The deferral for services can last no
longer than the tax year following the receipt of the payment.
Version 1 70
120) $1,440 = $840 interest ($120 × 7 months—June through December
of this year) plus $600 insurance ($2,700/18 × 4 months—September
through December of this year).
Interest accrues ratably for an accrual-method taxpayer. Insurance is a

payment liability and payment satisfies economic performance.
However, since the insurance covers more than 12 months the 12-month
rule does not apply and the prepayment must be prorated over the period
that the expenditure benefits.
121) $1,583 = $931 interest ($133 × 7 months—June through
December of this year) plus $652 insurance ($3,097/19 × 4 months—
September through December of this year).
Interest accrues ratably for an accrual-method taxpayer. Insurance is a

payment liability and payment satisfies economic performance.
However, since the insurance covers more than 12 months the 12-month
rule does not apply and the prepayment must be prorated over the period
that the expenditure benefits.
122) $2,500 is deductible last year and $3,500 is deductible this year.
Because Tim and Bob are "related" parties and Bob uses the accrual
method, Bob will not deduct the fee until Tim includes it in his income.
123) Zero. The warranty cost is only deductible when paid, this year.
Warranties provided to the taxpayer are payment liabilities.

Consequently, Colby is not allowed to deduct the $15,000 cost of the
warranty last year. He will deduct it this year when the warranty is paid
for.
Version 1 71
124) $400,000
The accrued $1 million warranty expense is an estimate and warranty

expense is a service that can be deducted only when provided or the cost
is incurred. Hence, Ranger is allowed to deduct the $400,000 spent
repairing equipment under the warranty.
125) Zero
Because tort liabilities such as this are payment liabilities, Blackwell

will not be able to deduct any claim until it is paid.
126) $5,000.
The all-events test is satisfied for $50,000, but Joe can only deduct
$5,000 this year because that was the amount of services provided to Joe
this year (unless Joe paid more and reasonably expected economic
performance within three and a half months of the date of payment).
127) $3,050.
Shadow can deduct amounts paid for services provided to it this year
and any amounts paid if performance is reasonably expected within
three and a half months of the date of the payment.
128) $15,000.
Unless the services are rendered, Murphy can only deduct costs actually
incurred, $15,000. The remainder is not deductible until next year
because of economic performance.
Version 1 72
129) $42,000 = $24,000 + $18,000.
Economic performance occurs for the rent ratably over time, so only
$24,000 is accrued ($2,000 per month times six months). Insurance is a
payment liability and accrues only as paid. However, since the payment
spans two periods (six months this year and six months next year), the
portion benefiting the future period would typically be capitalized. In
this case, the duration of the contract does not exceed 12 months and the
payment does not extend beyond the end of next year. So, the 12-month
rule allows for the deduction of $18,000. Note that the 12-month rule
cannot apply to the rent until economic performance occurs, and this
only happens ratably.
Version 1 73
Another random document with
no related content on Scribd:
laaksoon, olivat vuoret ruvenneet humisemaan ja pyry riehumaan.
Jos matkaa olisi kestänyt vielä muutamakin minuutti, olisi hän kyllä
saanut yöpyä taivasalla.
Samoin oli, niin hän jatkoi, hänen isänsä, joka 1789 vuoden sodan
aikana oli komennettu lääkäriksi Vuoreijaan, papinrouva täällä
ottanut vastaan. Itse pappi, kirkkoherra Sund, oli silloin ollut matkalla
Inariin. Isänsäkin oli vilustuneena pysähtynyt pappilan mäelle ja
lähettänyt kyytimiehensä kysymään, saako vihollisen valtakunnan
alamainen tyyssijaa, saattamatta itseänsä ja taloa vaaranalaiseksi.
Oli näet sodanaika. Silloin oli rouva astunut portaille ja kehoittanut
matkustajaa sanoilla: "Tulkaa sisään vieras! Tapelkoot ja sotikoot
kuninkaat; me täällä elämme ystävinä."
Lappalaiset ovat uteliaita, ja niinpä nytkin kirkonisäntä, tuo vanha

Matti Samuli, tahtoi puhutella tulijaa. Ensimäinen kysymys oli: "Missä
asioissa herra S. aikoi matkustaa Vesisaareen tähän vuoden aikaan
aina Tromsasta saakka, kaiketi yli 50 penikulmaa?" Mutta vieras
vastasi varsin lyhyesti ei aikovansa kenellekään puhua asioistaan,
mutta huvikseen hän ei ollut tälle matkalle lähtenyt. Minä sitä
vähemmin halusin tiedustella mitään herra S—n matkasta, kun
itsekin olin miltei valmis lähtemään jo mainittuihin häihin. Herra S. oli
varsin halukas, outo kun oli paikkakunnalla, pääsemään seuraani;
sillä jo Tromsassakin kauhistutaan matkoja Lapissa. Suostuin
mielelläni hänen esitykseensä, etenkin kun hän näytti neuvokkaalta,
reippaalta ja iloiselta, sekä moneen asiaan perehtyneeltä.
Ilman erityisiä seikkailuja saavuimme eräänä selkeänä talvi-iltana

Vesisaareen. Kirkas iltarusko valaisi kylän, kun laskimme alas
viimeistä rinnettä myöten, jossa nuoriso huvittelihe suksilla, kelkoilla
ja pulkilla, vanhempien mielihyvällä katsellessa nuorten reipasta
urheilua. Täältä saimme melkoisen lisän seuraamme.
Vesisaaressa ei ole vetojuhtia. Poroja ei voida pitää jäkäläin

puutteessa, eikä siellä nähdä, kuten idän puolella, valjastettuja
koiria, harvoin härkiäkään. Kauppalan nuorisossa nousi siis suuri
riemu, kun he näkivät porokulkueen. Etenkin lisäsi heidän
uteliaisuuttaan se, kun huomasivat matkustavaiset säätyläisiksi, joita
kaksi lappalaista palveli. "Kuka matkassa" huudettiin. "Otsjoga
paappai", vastasi lappalainen yhtä äänekkäästi, niin että kaikki
kuulivat. Olimme pian ensimäisten kalastajakojujen luona, joista
väkeä tuli ulos kuin haamuja, lisäten meidän jo ennestäänkin suurta
ja iloista seuraamme. Kaikissa huomattiin uteliaisuutta ja
kohteliaisuutta, avustuksen halua ja hyvyyttä. Väestön ilakoidessa,
lasten kirkuessa ja koirien ulvoessa, vietiin meidät ikäänkuin
juhlakulkueessa kylän läpi kauppiaan taloon, jossa häitä piti
vietettämän. Sieltä heti kiväärien ja tykkien paukunnalla ilmoitettiin,
että vieraita oli saapunut. Isäntä tuli vastaani, ja minä esitin hänelle
matkakumppanini. Mutta hän jo tiesi sekä hänen nimensä että hänen
asiansa. Kun isäntä oli minulle osottanut huoneen, jossa minun tuli
asua, piti herra S. turkistani kiinni, pyytäen, että hän kaikinmokomin
saisi minun seurassani tulla sisään. Silloin minä ääneen sanoin:
"Älkäämme viivyttäkö isäntäämme täällä pakkasessa, vaan
astukaamme sisään." Siten pääsi S — kin kaikella kunnialla taloon.
Olin joutuisammin pukeutunut kuin salaperäinen S., ja olin

noudattamaisillani kutsua teepöytään, kun hän taas rukoili, että
ottaisin hänetkin mukaan, kun lähden naisväkeä tervehtimään.
Hänen hartaasta pyynnöstänsä minä hänet esitin emännälle, jonka
luona paikkakunnan kaikki säätyläisnaiset jo olivat koossa. Moniksi
niitä ei olisi muualla sanottu, mutta täällä ne muodostivat rattoisan
seuran. Niitä oli, Köpenhaminassa kasvatettu emäntä, talon
vastainen miniä, yksi talon oma naitu tytär, voudin rouva ja muutamia
naimattomia naisia. S—ää kohtelivat emäntä ja muutkin naiset
ystävällisesti. Kun teepöytä oli korjattu pois ja yksi huomispäivän
morsiustytöistä oli asettunut hyvin viritetyn pianon ääreen poloneesiä
soittamaan, pyysi vouti emäntää kävelyyn, ja minulle
toimitusmiehenä, ilmoitettiin, että maan tapa "vaatii", että minä
kävellytän morsianta. Poloneesiä jatkui kunnes naiset olivat
"vaihdetut", s.o. kunnes jokaisen kanssa oli kävelty. Iltasella
huomasin että S—n kapineet olivat siirretyt huoneestani pois.
Varhain seuraavana aamuna kävi vouti luonani. Hän kysyi muun

muassa: "tietääkö pastori kenen kanssa olette matkustanut?" —
"Tietysti Tromsan kauppiaan S—n kanssa", vastasin minä. "Mutta
tiedättekö missä tarkoituksessa S. on tullut tänne?" "Mitä asioita
hänellä lieneekin, sanoin minä, siitä en välitä tunturimatkoilla; hän on
kohtelias ja siivo ja olimme toisillemme suureksi hyödyksi." "Niinpä
niin", vastasi vouti, "mutta muutoin hän on tullut tänne rangaistusta
varten. Kun hän on säätyläinen, talonomistaja Tromsassa ja varakas,
on hänelle sallittu kunniansanallaan omalla kustannuksellaan
saapua tänne määräaikana. Kiellettyjen tavarain maahan tuonnin
tähden on hän, paitsi melkoisia sakkoja, karkoitettu Ruijaan kuudeksi
kuukaudeksi, ja minua on käsketty kahdeksan päivän kuluessa
sijoittaa hänet palvelukseen, ellei hän sitä ennen ole itse hankkinut
palveluspaikkaa." Kun kohteliaisuudesta pikimmiten kävin voutia
tervehtimässä, tapasin siellä S—n, ei enään herraspuvussa, vaan
merimiesröijyssä, joka oli tehty karkeasta kankaasta, istumassa
ovenpielessä voudin työhuoneessa, voudin tarkastellessa häntä
koskevia kirjeitä ja passia.
Paikkakunnalla oli, kuten tavallista, enemmän nais- kuin
miesväkeä, enkä tiedä, voudin luvalla vai luvattako, emäntä oli
kutsunut myös S-—n häihin; mutta sen huomasin, että hän nuorten
luona oli varsin tervetullut, ja aina hänellä oli ensi sija, koska hän oli
muita etevämpi tiedossa ja tanssissa. Lopputulos oli, että sekä
nuoret että vanhat mieltyivät häneen, ja ellei hän olisi ollut
naimisissa, niin ei hänen olisi ollut vaikea viettää täällä häitänsä.
Naistenko välityksestä, tai siitä että vouti olisi itse mieltynyt häneen
ja säälinyt häntä, sitä en tiedä, mutta seuraavana päivänä näin hänet
työssä voudin konttorissa sekä huomasin häntä kohdeltavan talon
ystävänä. Ja siten hän voudin konttoriapulaisena suoritti
kuuskuukautisen rangaistuksensa Vesisaaressa, josta hän, kuten
sanottiin, olisi lunastanut itsensä vapaaksi vaikka millä rahoilla. Ellei
hän olisi tätä konttoritointa saanut, olisi hänen ollut pakko palvella
kalastajarenkinä jonkun veronalaisen norjalaisen, kainulaisen tai
lappalaisen luona.
Kun vihkimystoimi oli suoritettu, niin juhlallisesti kuin suinkin,

huomasi vieraista selvästi, että viinit olivat hyviä, punssi maukasta,
soitanto tyydyttävää, tanssi virkeää, ja morsian viehättävä.
Noin kello 9 aikaan, tanssien lomassa, pani vouti

univormuhattunsa päähänsä ja miekan kupeelleen, lähteäksensä
rattoisasta seurasta. Luulin jonkun hälinän syntyneen
kokoontuneessa väkijoukossa. Kysyin, ja sain vastaukseksi; "Minun
täytyy hetkeksi lähteä virkatehtävään." Onko mikään vaara tarjona?
"Ei toki, minulla on vanki, jota täytyy mennä katsomaan." Haluten
tutustua paikkakunnan vankeinhoitoon lähdin minäkin mukaan.
Vankila ei ollutkaan kaukana häätalosta. Tuo mies oli joku kuukausi
sitten otettu kiinni ja havaittu erääksi suureksi pahantekijäksi etelä-
Norjasta. Järjestys ja siivo oli vankilassa oivallinen. Huone oli
parempi ja lämpöisempi kuin ne, joita useimmat veronalaiset
norjalaiset Vesisaaressa jaksoivat itselleen hankkia. Ruoka, jota
vangille nyt tuotiin, oli tuore ja puhtaasti valmistettu. Ystävällisesti
vouti häntä puhutteli, kysyi puuttuiko mitään — ruokaa, juomaa,
kirjoja, lämpöä — kuinka hän jaksoi y.m. Toisena päivänä vouti
uudisti käyntinsä vangin luona, edellä ja jälkeen puolenpäivän. Paitsi
sopivia hartauskirjoja, joita vankilassa on saatavana, annettiin
hänelle pyynnöstä muitakin käsillä olevia uskonnollisia ja siveellisiä
kirjoja. En ole ennen enkä sen jälkeen nähnyt vankeja kohdeltavan
semmoisella laupeudella, mutta vouti väitti, että tämä on Norjassa
tavallista. Ja sittenkin siellä on paljon vähemmin vankeja ja rikollisia
kuin meillä. Vieläpä nimismieskin oli velvollinen käymään vangin
luona joka päivä. Vanginvartijan velvollisuutena oli vangin ruoan
laittaminen, vankilan puhdistaminen ja vartioiminen. Kaikki
puhuttelivat vankia ystävällisesti, ja siten totutettiin hänetkin
ystävällisyyteen, alistumiseen, rohkenenpa sanoa siveellisyyteen.
Pidin tätä enemmän kouluna ja ojennuslaitoksena, kuin vankilana,
enemmän keinona saada rikollinen oikealle tielle, kuin
rangaistuksena hänen tekemästään rikoksesta. Tätä nykyä täällä ei
ollut muita vankeja. Asia onkin niin, että jos joku täällä asuva joutuu
tutkimuksen alaiseksi, vaikkapa törkeästäkin rikoksesta, niin hänen
sallitaan itse pitää toimeentulostaan huolta, ja pysyä vapaana,
kunnes on saatu selville, onko hän rikollinen vai ei. Näin kertoi vouti.
Tämä käy päinsä, arvelin minä, paikassa, jossa karkaaminen ei ole
edes mahdollinen. Karkaaminen, selitti vouti, ei ole meidän
lakiemme mukaan rikos, eikä sitä semmoisena rangaista, koska ei
ole rikos pyrkiä vapauteen. Pienemmistä rikoksista, myöskin
varkaudesta, kun varastetun arvo ei nouse yli 10 taalarin,
rangaistaan siten, että rättäri 5 korttelin pituisella pampulla, voudin,
lautakunnan ja käräjäväen läsnä ollessa, antaa tuomitulle lyöntejä
kahdeksasta aina 30:een saakka, ohuiden vaatteiden päälle. Vouti
pitää väestölle puheen, ja rangaistu kiittää voutia armollisesta
rangaistuksesta. Yli 10 taalarin varkauksista ei ole ruumiin
rangaistusta, vaan karkoitus lyhyemmäksi tai pitemmäksi ajaksi.
Paluumatkallani Vuorelasta tapasin Varangissa kaksi nuorta ihmistä,
jotka olivat sinne karkoitetut kolmeksi vuodeksi. Toinen oli nuori
nainen Vuoreijan linnasta, rangaistu siitä, että oli aviopuolisojen
kesken aiheuttanut epäsopua, josta oli seurauksena itsemurha, ja
toinen, varkaudesta tuomittu mies, Alatiosta.
Häätaloon palattuamme alkoivat tarjoilut, ja tietysti maljat. Juotiin

Norjan menestykseksi, jota norjalaiset punssilasin ääressä harvoin
laiminlyövät. Juotiin malja "naapurivaltakunnalle" ja liitolle, jonka
johdosta laulettiin. Puolittain säälien puhuttiin ruotsalaisista kansana,
joka on ollut suuri, mutta joka nyt on vanhentunut, ja jota on
rakastettava ja kunnioitettava kuten rakastetaan ja kunnioitetaan
vanhusta, joka on aikansa elänyt. Mutta Norjaa kuvattiin reippaaksi
nuorukaiseksi, joka tarmolla pyrkii edistymään, vaikka onkin lapsi,
mutta joka kyllä on voittava kaikki luonnon esteet; kansaksi, joka
elämän ja kuoleman uhalla astuu eteenpäin. Niin, se on kansa, jonka
suurin omaisuus on "tuo hyvä perustuslaki", jota alhaisinkin
norjalainen osaa arvossa pitää, ja jonka puolesta hän tahtoo uhrata
kaikki, mitä hänellä on.
Kun innostus valtiolaitokseen on suuri rahvaassakin, ei virkamies-

eikä rahamiestenkään piirissä huomaa paljon mahtia ja mahtavuutta.
Kumpaakin siedetään, mikäli ne tarkoittavat maan etuja, ja sen tietää
kansa. Sentähden, kun tapaa korkean ja ankaran virkamiehen ja
kysyy rahvaalta, mitä se pitää semmoisesta "suurmiehestä," (siksi
virkamiestä usein sanotaan), saa useimmiten vastaukseksi: "No, hän
on hyvä mies, hän on Norjan kunnia." Meillä norjalaisilla on meidän
lakimme mukaan kaikilla samat oikeudet, mutta meillä ei ole kaikilla
samaa kykyä ja samoja tietoja. Sentähden tulee sen hallita, joka
siihen on omansa, jolla on viisautta ja älyä; ja Norjan kunnia vaatii,
että eteviä miehiä pidetään suuressa arvossa ja saavat palkkiota
ansionsa mukaan. Raharikkaita ei vihata eikä kadehdita, vaan ollaan
varsin tyytyväisiä että niitä on. Ne ovat, sanotaan, pylväitä, ja
ymmärretään varsin hyvin, mikä hyöty on valtiolle heidän
aarteistaan. Ne ovat hyödyksi monenkaltaisten verojen
suorituksessa maassa, jossa maanviljelys ei jaksa yksin kantaa
verojen taakkaa, vaan jossa varallisuus ja liikkeet taksoitetaan
uskottujen miesten toimittaman arvostelun mukaan.
Tuota paljon huudettua norjalaisten kansallisylpeyttä en

huomannut kovin loukkaavaksi, joskin se näytti naurettavankin
puolensa. En myöskään kuullut heidän puheissaan tuota paljon
mainittua vihaa ruotsalaisia kohtaan. Saattoi kyllä joskus, aiheesta
tai aiheettomasti, kuulla, ettei Ruotsin perustuslaki ollut paraita, sekä
että jos kerran nousisi puhe yhtäläisistä laeista veljeskansoille, niin
kyllä olisi luonnollisempi, että Ruotsi omaisi Norjan valtiojärjestyksen
kuin päinvastoin.
Nuoremmissa konttoristeissa ja äsken tutkintonsa suorittaneissa

siviilivirkamiehissä saattaa pöyhkeileväisyys joskus rehottaa, mutta
sitä en huomannut koskaan upseereissa, jotka päinvastoin
paheksuivat sitä nurjuutta naapurikansaa kohtaan, jota kuulivat
kauppa- ja siviilisäätyyn kuuluvilta. Minulla oli kuitenkin onni tavata
useita upseereja, ja monta voutiakin. Voutien seurassa ei tarvinnut
kauvan oleskella, ennenkuin sai kuulla, että he olivat "kuninkaan
vouteja". Ja kun ystävällisesti kysyin, kuinka he saattoivat menetellä
niin omavaltaisesti monissa asioissa, niin vastattiin: "Voudit ovat
kuninkaita Ruijassa!" Ja kun viittasin norjalaiseen tasa-arvoon,
sanottiin: "Olen kuninkaan vouti, ja hoidan oikeutta kuninkaan
nimessä; mutta muutoin olen samanarvoinen kuin köyhä kalastaja".
Mutta norjalaisten kateus, joka ei ilmene ruotsalaisia kohtaan,

ilmaantuu heidän omassa keskuudessaan. On kilpailu ja kauna Itä-
ja Länsinorjan välillä, vielä enemmän Kristianian ja Trondhjemin
kesken. Kuten Ruijassa, samoin muissakin maakunnissa, moititaan
toisiansa, joka osaksi riippunee eri luonnoneduista ja vuonoin kautta
toisistaan eristetystä asemasta, osaksi siitä, että verotus käy
varallisuuden ja liikkeen mukaan. Yleinen verotus määrätään
suurkäräjissä kiivaiden keskustelujen jälkeen, sitten voutikunnittain,
vihdoin pitäjittäin, jolloin rahvas käräjissä valitsee kaksi uskottua
miestä, jotka määräävät, paljonko jokaisen yksityisen tulee suorittaa.
Sitten taas, kun on kysymys "Norjan menestyksestä", ovat he
yksimielisenä kansana. Ruijan virkamiehet ovat enemmäksi osaksi
"Sunnanfjells" harjanteiden eteläpuolelta. Ne ovat tavallisesti nuoria
miehiä, jotka nykyisin ovat suorittaneet opintonsa Kristianian
yliopistossa, ja kuuluvat siis Kristianian liittoon. He puhuvat
mielellään Trondhjemilaisten ylpeydestä, ikäänkuin säälien paikan
alennustilaa, se kun ennen oli ollut kuninkaan istuimena. He soivat
kuitenkin Trondhjemille sen, mikä sillä on, mutta säälien he katselivat
sen valtiollista vähäpätöisyyttä. Sanalla sanoen, he eivät ihailleet sen
asukkaita, vaan kunnioittivat itse paikkaa. He olivat ylpeitä
Trondhjemin tuomiokirkosta, Olavin sankarintöistä ja norjalaisten
muinaisista viikinkiretkistä; mutta olivat hyvillään siitä, että se aika oli
ohi. Nyt halusivat he vain pysyä rauhassa, nauttien meren ja vuorten
rikkauksista. Sentähden he yhä vähentävät armeijaansa. Tahdomme
kyllä, sanoivat he, puolustaa itseämme, siihen kuitenkaan ei riitä
armeijamme. Mutta me lähdemme mies talosta, tappelemme
isänmaan, naistemme ja lastemme puolesta viimeiseen kynteen
saakka. Jos meitä vastaan hyökätään, niin kyllä näytämme, että
Norjassa on sekä rautaa että ruutia ja käsivarsia, millä se itseänsä
puolustaa. Meitä moititaan, että pidämme ruoka-aineet ja työn
korkeassa hinnassa; mutta sehän juuri on politiikkamme. Me
rohkaisemme työläisiä, ja saamme siten kunnollisia työmiehiä.
Niinpä esim. kyytimaksu meillä enemmän tarkoittaa maan kuin
matkustajan etuja.
Meitä suomalaisia näkyvät he katselevan, niinkuin Aleksanteri

Suuri juutalaisia, laupeudella ja säälillä. Suomalaisilla ei kuitenkaan
tarkoitettu herrasluokkaa, joka heillä käy ruotsalaisen tai venäläisen
nimellä. Niinpä minulta kysyttiin, tahdoinko pitää itseni ruotsalaisena,
vaiko venäläisenä; sillä he eivät tietäneet mistään itsenäisyydestä
Suomessa tahi, niinkuin he sanovat, Suursuomessa, eivätkä sitä
tunnustaneetkaan, kun sitä nyt, kuten ennenkin, hallitsivat
ruotsalaiset virkamiehet, eikä maankieltä käytetty edes virastoissa
eikä oikeudenkäynnissä, vaan kuten heillä lappalaisten luona
norjankieltä, samoin Suomessa ruotsinkieltä.
Kolmantena päivänä häiden jälkeen ryhdyin paluumatkalle

Utsjoelle. Sillä matkalla tuli minun kulkea Varankitunturin poikki. Olin
saapunut Nyborgin kauppalaan ja asuin erään herra Tveden luona,
joka kehoitti minua viipymään, sillä yhä riehui rajuilma. Jätin
oppaalleni ratkaistavaksi rohjettiinko lähteä tunturille, jossa muuan
minun edeltäjäni, kirkkoherra Helander rajuilmassa eksyi edellä
ajajastaan, ja sai siellä kuolettavan taudin. Oppaani suuresti epäröi,
tutki pilviä, tarkasti tuulensuuntaa, ja kehoitti vihdoin odottamaan
vielä jonkun ajan. Mutta ei edes auringon noustuakaan, jolloin ilma
tavallisesti muuttuu, rajuilma lakannut. Nyt eräs toinen lappalainen,
jolla oli sama matka kuin meillä, halusi lähteä, vaikkei rohjennut
yksin. Opastanikin jo vaivasi koti-ikävä. Olisin mielelläni viipynyt,
enkä suostunut lähtemään, ennenkuin molemmat olivat
vakuuttaneet, ettemme eksyisi. Lupasivat, olipa ilma mikä tahansa,
viedä minut Puolmakiin, kunhan porot vain eivät väsy, ja heille
suodaan aikaa niiden syöttämiseen. Syötyäni hyvän aamiaisen
lähdimme, vaikkakin lappalaiset nyt selittivät ettei matkaan ole
ryhtyminen heidän edesvastuullaan, vaan Jumalan kaitselmuksen
turvissa.
Jos lukija ottaa kuvitellaksensa suurta järveä, joka on jäätynyt

myrskyn ja rajuilman aikana, ja siis on kovin epätasainen, ilman tietä
ja viittoja; jossa ei näe rantaa millään taholla, kun pyry lennättää
lunta sikinsokin tuulen mukaan; niin hän saa heikon käsityksen
tunturimatkasta talviseen aikaan lumipyryssä. Vanhan uskollisen
vainukoiran tavoin kokenut lappalainen ei erehdy suunnasta. Hän
yhä hoputtaa kestävää poroansa; kuljetaan harjut ja laaksot, ja
pelastus riippuu yksinomaan Jumalasta ja lappalaisen vainusta.
Milloin pulkka sattuu teräviin kiviin, joten se on vähällä särkyä, milloin
se kokonaan vajoo lumeen ja kaatuu. Missä ajaja näkee
vaivaiskoivun, hän pysähtyy, tarkastaa sitä, katselee eteensä ja
taaksensa, huomataksensa onko suunta oikea, missä ei näy oksaa
tai vesaa lumen alta, siellä hän kaivaa niitä lumesta, saadaksensa
niistäkin tienoppaan, jonka luotettavaisuutta hän tutkii kompassin,
tuulen ja jonkun näkyvissä olevan tähden avulla. Muutoin tuuli
tunturiseuduissa on kovin epävarma johtaja. Jos siihen liiaksi luottaa,
on vaara tarjona, sillä jos sen muuttunut suunta jää huomaamatta,
syöstään ehkä joihinkin tunturien epälukuisiin kuiluihin, ja ristituulet,
jotka eivät ole varsin harvinaisia tuntureilla, saattavat helposti ohjata
matkustajan takaisin siihen paikkaan, josta on lähdetty.
Onnellisesti saavuimme kuitenkin Puolmakiin, jossa minua avoin

sylin tervehti Kolderup, huudahtamalla: "Jumalalle kiitos, että olette
hengissä; olipa teillä mokoma ilma paluumatkallanne."
Varhain aamulla tuli luokseni joukko kyläläisiä. Kaikki olivat he
suomalaisia, ja sitäpaitsi oli väkeä naapurikylistäkin tullut minua
tapaamaan. He pyysivät minua pitämään jumalanpalvelusta, ja
useita lapsia tuotiin kasteelle. Kun ei ollut vuoteen mitään pappia
paikkakunnalla ollut, suostuin heidän pyyntöönsä; kuitenkaan ei
ehtoollista jaettu. Siihen oli Vesisaaren voutikin minua neuvonut, kun
häiden aikana hänen tykönään oli käynyt useita henkilöitä, jotka
omasta ja muiden puolesta olivat anoneet hänen avustustansa
siihen, että paluumatkalla palvelisin täkäläistä suomalaista ja
lappalaista rahvasta papillisilla toimituksilla. Ripillä saivat kyllä
puolmakilaiset ja lähikyläläisetkin käydä Utsjoen kirkolla, milloin
heillä ei ollut omaa pappia.
Ollessani Puolmakissa sain nähdä, kuinka n.s. norjalainen

sovintokomitea toimii. Siinä oli esimiehenä sovintokomisarius ja
lautakuntana kaksi kunnollisiksi tunnettua rahvaanmiestä. Norjassa
ei ota varsinainen oikeus käsitelläkseen mitään siviiliriita-asiaa,
ennenkuin se on sovintokomiteassa ilmoitettu ja siellä yritetty
sovittaa. Sovintokomisariuksiksi valitaan taitavimmat ja
paikkakunnalla rehellisyydestä tunnetut miehet. Valittujen täytyy,
jollei heillä ole laillista estettä, ottaa tehtävä vastaan ja pysyä siinä
kolme vuotta, jolla aikaa ovat mieskohtaisista veroista vapaat.
Maaseudulla amtmanni, jota meillä vastaa kuvernööri, on koko
sovintolaitoksen esimiehenä läänissään, mutta kaukaisempia seutuja
varten hän määrää kunnollisia, rehellisiä miehiä, tavallisesti kaksi
kutakin sovintopiiriä varten, jolloin piirit jaetaan mahdollisuuden
mukaan niin, ettei kellään ole istuntopaikkaan pitempää matkaa kuin
4 penikulmaa. Sovintolautakunnan jäsen vannoo seuraavan valan:
"Minä N. N., valittuna sovintokomitean jäseneksi, lupaan ja vannon,
että minä kaikin voimin koetan edistää asianosaisten kesken
vapaaehtoista sovintoa niissä asioissa, joita tässä komiteassa
esitetään, ja kaikella innolla ja rehellisyydellä, mikäli kykyni siihen
riittää, niin myös parhaan vakaumukseni ja omantuntoni mukaan
siihen avustaa, niin totta kuin Jumala auttakoon ja hänen pyhä
sanansa."
Kun vapaaehtoinen sovinto on odotettavissa helpommin, jos

asianomaiset ovat itse saapuvilla, niin on heidän velvollisuutensa
esiintyä mieskohtaisesti komitean edessä, ellei heillä ole laillista
estettä, tahi, mitä kantajaan tulee, hän asuu enemmän kuin 4
penikulmaa komitean kokouspaikasta. Valtuutettuna, jolla on oikeus
sovittaa asia, olkoon ainoastaan semmoinen henkilö, joka nauttii
täydellistä kansalaisluottamusta. Asianajajaa ei saa pitää mukanaan.
*****
Käydessään 1822 Utsjoella ja siellä viivyttyänsä luonani muutamia

päiviä, rovasti Deinboll lähtiessään kehoitti minua seurassaan
matkustamaan Nordkapiin. Kun ei ollut toiveita tavata lappalaisia
kirkolla ennen Mikonpäivää, ja kun jo olin saanut kotimaasta
asianomaisten luvan tieteellisissä ja taloudellisissa tarkoituksissa
matkustaa Ruijassa, suostuin kehoitukseen. Parin päivän matkan
jälkeen saavuimme Gullholmaan, joka on kauppapaikka pienellä
saarella Tenojoen suulla, noin 50 syltä pitkä ja samanlevyinen.
Täällä meitä ystävällisimmästi vastaanotti kauppias Juhana

Skanke, joka oli piiripäällikkönä ja sovintokomisariuksena ja omasi
siihen tarpeelliset lainopilliset tiedot. Hän oli sen ohessa
keskievarina, ja kestittäjänä sanan täydellisessä merkityksessä, sillä
tunnettu ruijalainen vieraanvaraisuus kuului hänenkin
ominaisuuksiinsa. Jokainen Gullholmaan tulija saa kohta kuulla
hänen tervehdyksensä: "Tervetullut tänne!" Hän vie heti vieraansa
hyvin järjestettyyn taloonsa ja maukkaasti katettuun pöytäänsä,
jossa ateria alkaa liemiruualla ja loppuu hyvään kala- tai liha-
annokseen. Tätä yksinkertaista elämäntapaa noudatetaan yleensä
koko Ruijassa, eikä ruokalajien lukua lisätä vieraankaan tullessa,
eikä edes juhlatilaisuuksissa. Mutta sitä vastoin harvoin päästään
punssimaljasta. Päivällisen jälkeen lähdetään tavallisesti ulkoilmaan
virkistymään, mutta kauvan sitä ei suoda nauttia, sillä pianpa tulee
palvelija, joka kohteliaasti lausuu: "Emäntä (tai isäntä) pyytää herraa
astumaan sisään juomaan kupin kahvia". Rouva ja herra kilpailevat
sitten, toinen tyrkyttäen punssia, toinen kahvia.
Tuotiin myytäväksi runsaasti kaloja, semminkin lohia; ja liike olisi

ollut vilkkaampikin, jos herra Skankella olisi ollut enemmän tavaroita
vaihdettavina lappalaisten, kainulaisten ja norjalaisten kalaan ja
hylkeen rasvaan. Herra Skanken monet nuoret pojat — jotka hänen
luonaan olemisemme aikana olivat koulunkäynnistään vapaat, kun
heillä ei ollut muuta opettajaa kuin isä, jolla nyt oli muuta tehtävää —
olivat aamusta iltaan kalastamassa Gullholman rannoilla. Pitemmälle
heillä ei ollut lupa lähteä. Heidän kalastustapansa oli yksinkertaisinta
mitä ajatella voi. Heillä oli rautanaula kiinnitettynä sauvan päähän, ja
se kädessään he kulkivat pitkin rantoja etsien santakampeloita, jotka
nuuskivat ruuakseen äsken perattujen kalojen verta. Naulalla he
läpäisivät kampelan, joka virui vedessä soikean vadin tahi suuren
lautasen näköisenä. Leivisköittäin ne niitä kokoilivat yhtenä aamuna.
Mutta eipä kalastus siihenkään rajoittunut. Eräänä aamuna he toivat
taloon kiinni ottamansa elävän hylkeen. Se oli poikanen, jota olivat
houkutelleet seuraamaan heitä kuivalle maalle, emän ääntä
matkimalla.
Seurakunta täällä oli varakas, ja sen jäsenet olivat muita näillä

seuduilla asuvia sivistyksessä etevämmät, paitsi norjalaisia
Vesisaaressa. Ani harva heistä polveutui lappalaisista, vaan olivat ne
suomensukuisia. Suomalaisilla suuresti kehittynyt karjanhoito oli
perustuksena heidän varallisuuteensa. Seutu onkin siihen varsin
sovelias, sillä mitä lähemmäksi Tenojoen suuta tullaan, sitä
ruohoisemmiksi rannat käyvät, ja pieniä kattosonnalla lannoitettuja
niittypalasia tavataan monissa paikoin.
Lähdettiin Nordkapiin. Se ei vaikuta kammottavammin kuin moni

muu kallionkärki Jäämeren rannalla. Nordkapin kalliot eivät olekaan
korkeammat kuin 1,000—1,200 jalkaa. Mutta kuten muuallakin
pitkälle pistävissä niemissä ja luodoissa, ei täälläkään ollut mitään
kasvullisuutta. Ainoastaan joku kitukasvuinen, päästä kuivettunut
korsi pisti esiin vuoren halkeamista. Taivas, vesi, tunturit ja usva ovat
ainoat mitkä näkee. Harvoin aurinko pilkistää pilvien raoista.
Matalimmilla kallioilla on varsin niukasti kasveja, mutta ei ensinkään
pensaita, saatikka puita. Mikä asuntopaikka! huudahtanee jokainen.
Mutta ei se ole parempi läheisissä saarissa ja niemissäkään. Päivä
oli tällä kertaa ihana, mutta kyytimiehemme väittivät, että semmoiset
päivät ovat täällä harvinaisia. Saavuimme Tanahorniin, joka on jylhä
kallio Tenojoen suulla. Pitkänä ja kapeana se pistää kauvas ulos
mereen, eikä se ole paljoakaan matalampi, kuin Nordkapin kalliot.
En ole koskaan nähnyt paikkaa, joka on minuun jättänyt

kammottavamman muiston kuin Tanahorn. Uteliaisuus ja halu
seurata Deinbollia tuolle kalliolle katselemaan Jäämeren
majesteetista hyrskyä olivat houkutelleet minut melkein sen
huippuun saakka, joka alttarin kaltaisena pistää ulos mereen. Ja kun
siellä näin 1,000 jalan syvän kuilun ympäröivän minua melkein joka
puolelta, jouduin jonkinmoiseen pyörtymystilaan, niin vaikeaan, että
joka kerta kun sitä muistelen, tunnen väristystä jäsenissäni; ja vielä
kauan jälestäpäin olen unissani luullut syöksyväni sieltä alas.
Riensin siis pois tästä taivaan korkeudesta.
Lähdimme jalkaisin, tutustuaksemme seutuun, ja saavuimme
Berlevoogin kauppa-asemaan, joka on perustettu 1790 ja erään
Tromssalaisen oma. Asema perustui yksinomaan kauppaan meressä
kalastavien venäläisten ja Norjan n.s. pohjoisretkeilijäin kanssa.
Pohjoisretkeilijät tulevat tänne keväällä, aina etelä-Norjasta saakka,
ja lähtevät, kuten venäläisetkin, pois syksyllä, saatuansa täydet
lastit. Ainoastaan viisi perhekuntaa asuu täällä, ja kauppaa tehdään
vain lyhyenä kesänaikana. Pitkä 9-kuukautinen talvi eletään täällä
kuin vankeudessa. Hevosella tänne ei voi koskaan päästä, ja varsin
harvoin porollakaan. Kaupanhoitaja Kruuse, kun oli edellisenä
talvena tahtonut matkustaa "Pohjoismaahan" (Nordlandet), oli
pakotettu kulkemaan jalkaisin kuusi penikulmaa, matkakapineet
kelkassa, Gullholmaan, ja vasta 8 päivää siellä odoteltuaan hän sai
Skankelta kyytiporot. Talvella ei käy muu kauppa, kuin ravinto-
aineiden velaksi antaminen rutiköyhille naapureille, jotka puolestaan
sitoutuvat myymään kaikki ensi kesänä saamansa kalat
kaupanhoitajalle.
Vähän matkan päässä kauppa-asemasta on vanha hautausmaa,

jossa siihen aikaan kun Tenon ja Kjöllefjordin seurakunnilla, jotka nyt
ovat Vuoreijan kappelina, oli oma pappi, milloin vuosittain, milloin
joka toinen vuosi siunattiin ne ruumiit jotka sillä välin oli siellä
haudattu. Mutta nyt ei ollut pappia käynyt täällä kymmeneen
vuoteen, jonka tähden rovasti Deinboll, toimitettuaan
jumalanpalveluksen asemalla, heitti multaa joka paikkaan missä
tiedettiin sellaisen vainajan lepäävän. Mutta kun ilmoitettiin, että
useita pohjoisretkeilijöitä oli tänne haudattu, tietämättä mihin
paikkaan, heitti rovasti kolme kertaa multaa myöskin keskelle
hautausmaata, kaikkia niitä varten, joiden hautapaikkoja ei tiedetty.
Paluumatkalla poikkesin Vesisaareen, ja sieltä suuntasin matkani
meritse Morttiseen, johon oli kolme penikulmaa. Alussa meitä ei
haitannut myrsky. Mutta emme olleet päässeet muuta kuin puolen
penikulmaa, kun taivas vetäytyi synkkiin pilviin, jotka olivat
lakkaamatta liikkeellä; tuuli kävi kovemmaksi, venhe kiiti
reippaammin, ja muutamassa minuutissa oli meillä täysi myrsky, joka
uhkasi kaataa veneemme, vaikka purjeet olivat reivatut. Toinen
hyökylaine toisensa jälestä syöksyi veneeseen. Kolme reippainta
soutajaa ponnisti viimeiset voimansa saadakseen meidät maihin.
Neljäs ja minä ajoimme vettä veneestä. Työ oli raskas, sillä mikäli
saimme veden vähennetyksi, tuli uusia laineita sisään. Olimme jo
hyvin lähellä maata, mutta sopivaa nousupaikkaa ei ollut, sillä
mustia, jyrkkiä kallioseiniä vastaan syöksyivät laineet rajusti,
pudotakseen taas useiden sylien korkeudesta takaisin valtamereen.
Ei siis ollut hyvä pienellä purrellamme laskea rantaan. Monen
ponnistuksen jälkeen onnistui meidän kuitenkin päästä maihin.
Olimme läpimärät, eikä tulta voitu sytyttää. Koko vuorokauden
makasimme veneen alla, kun lakkaamatta myrskysi, satoi lunta,
rakeita ja vettä. Semmoinen ilma, sanoivat soutajani, ei ole
harvinainen Ruijassa. Nyt olemme kuitenkin kovalla maalla, sanoi
yksi lappalaisistani, emmekä ole huonosti hoitaneet venettä, kun
pääsimme tänne; eihän täällä ole varsin hyvä, mutta parempi
sittenkin kuin ulapalla. Kolme kertaa tänä kesänä olivat laineet
täyttäneet heidän veneensä, kun he olivat kyydinneet "suurmiehiä".
Parhaassa ilmassa saavuin sitten Morttiseen kauppias Nordvin

luo. Vieraanvaraisuus on kyllä Ruijassa erinomainen, mutta kyllä
sittenkin herra Nordvi siinä kohden oli muista voitolla.
Läpivilustuneena ja puolisairaana en voinut vastustaa Nordvin
vaatimusta olla lääkärinäni, ja alistuin siis mielelläni hänen
määräyksilleen, joihin kuului, paitsi muuta, tuo välttämätön punssi.
Se valmistetaan ainakin puolivalmiiksi, kun huomataan liputettu
vene, ja tuskin on päässyt huoneeseen, kun se jo kannetaan
pöydälle. Jos veneväki laiminlyö lipulla ilmoittaa säätyläisen
saapumista kauppalaan, saavat he moitteita. Vähän ajan päästä
isäntäni ilmoitti saaneensa kutsun toisten sairaitten luo — hän sillä
tarkoitti soutajiani, jotka kaiketi halusivat saada "huvitella" — ja pyysi
minua sillä aikaa tottelemaan hänen vaimonsa määräyksiä. Rouva
Nordvin lääkkeet olivat kahvi, aamiainen ja tee. Lähtemistä ei saanut
ajatellakaan, sillä puolen viikon levähdystä pidettiin välttämättömänä
moisten rasitusten jälkeen. Ruijan rouvat ovat mainioita
ruuanlaittajia. Emännöitsijää heillä ei ole. Rouva siinä itse toimii,
lappalaisnainen hoitaa vain tulta padan alla. Emäntää varten on
kyökissä hansikkaat, silmävarjostin ja esiliina. Nordvin
lääkejärjestelmä sai minut jonkun tunnin jälkeen hikoilemaan, jota
kesti virkistävän edelläpuolisen nukkumisen aikana. — "No, koska
teillä on niin hyvä luonto", sanoi Nordvi, "ja olette niin reipas, niin
luulen saavani poistaa teidät sairaslistalta ja päästää teidät matkaan,
mutta tänään se ei ole ajateltavissakaan. Olen rannikkopuolustuksen
päällikkö ja koko rahvas on minun käskyni alainen, ja lähteminen
talostani tänään — sunnuntaina — ei ole mahdollinen".
Koti-ikävä vaivaloisen matkan jälkeen, mutta semminkin

virkatehtäväni vaativat minua paluumatkalle, ja maanantaina 23 p:nä
syyskuuta olikin uusi, mukava 4 miehen soudettava vene
käytettävänäni. Nordvi ja hänen rouvansa seurasivat minua rantaan,
ja viimeinen sana, jonka heiltä kuulin, oli rouva Nordvin lausuma:
"Nyt emme saa ketään vierasta ennenkuin talvella", johon Nordvi
lisäsi: "tervetuloa ensi talvena".
Pian oli 1 1/2 penikulman matka suoritettu, ja olin nyt

Varankivuonon pohjuksessa. Täältä tahtoivat kyytimieheni palata,
mutta ne harvat ihmiset, jotka täällä asuivat, olivat kalastamassa, ja
semmoisessa tapauksessa oli kyyditsijäin velvollisuus saattaa minut
Puolmakiin, joka oli lähin paikka, missä ihmisiä oli tavattavissa.
Lähdimme siis. Ensin oli kuljettava jalkaisin Varankitunturin poikki, ja
sitten penikulma veneellä Tenojokea ylöspäin. Joka mies otti 40
naulan taakan kantaaksensa. Puolipäivän aikaan lähdimme
taivaltamaan. Auringonpaiste oli kuumempi kuin tavallisesti tähän
vuoden aikaan, ja taakat painoivat. Olimme puolitiessä, kun aurinko
oli lännessä, mutta matkan vaivaloisin osa oli suoritettu, kun tähän
saakka olimme kulkeneet ylämäkeä. Nyt oli astuminen alamäkeä.
Aurinko ei ollut vielä laskenut, kun Gollevaaralta sain silmäillä
hitaasti juoksevan Tenojoen peilinkirkasta pintaa. Tästä kauniista
näystä tahdoin hetkisen nauttia. Elokuun 25 p:nä olin kulkenut
Tenojokea Gullholmaan, enkä ollut sen koommin nähnyt kunnon
pensasta, saatikka puuta. Mutta täällä oli vielä koivu viheriänä ja
kilpaili rinnallaan seisovan haavan kanssa kauneudessa.
Jalkamatkaa oli vielä 1/8 penikulmaa, kun alkoi yhä tuuheampi
metsä; ja niin olin siihen ihastunut, että aivan huomaamattani
saavuimme joen rannalle. Täällä ei ollut venettä, mutta niin nautin
lehdosta ja ympäröivästä ilmasta, että mieluummin tahdoin yöpyä
tänne kuin ruveta pimeässä etsimään jotakin lappalaiskotaa. Sillä
välin oli kumminkin kaksi lappalaistani astunut jokea ylöspäin ja
kaksi alaspäin venettä etsimään. Iltarusko, joka kajasti
taivaanrannalla, antoi vielä senverran valoa, että saatoin tuntea
jokaisen kasvin, ja huomasin pian istuvani hajuruohokentällä. Ei
mikään ole kaunista, ellei sitä toiseen vertaa, eikä mikään nautinto
suuri, ellei ole kärsinyt sen puutetta. Ei edes Main-virran viinivuoret,
eivätkä Elben rannat, tarjoa vähemmän suotuisissa seuduissa
kasvaneelle etelämaalaiselle niin suuria vastakohtia, kuin Tenon
laakso sille, joka Varankivuonosta saapuu. Kun kauniina kesä-iltana
astuu alas Varankivuorelta Seida-kylän kohdalla, asettuu veneeseen,
ja kulkee auringon laskiessa Bonakaan ja Norskholman ohi
Gullholmaan saakka, silloin nauttii näystä, jota ei ikinä unohda.
Kuinka monet tuhannet hylkeet kohottavatkaan päänsä vedenpinnan
yli, ja ikäänkuin tervehtivät matkustajaa, ottavat penikkansa
selkäänsä ja sukeltavat niiden kanssa veteen, jos sattuvat tulemaan
liian lähelle venettä. Täällä elää ääretön joukko lintuja. Sorsa, närhi,
kajakka ja tiira seuraavat alaspäin luisuvaa venettä. Kaikki nuo
saavat nyt rauhassa kulkea, jotta ylöspäin pyrkivä lohi ei tulisi
ampumisella pelotetuksi; ja vasta syksyllä, kun lohenpyynti on
loppunut, hyökätään näihin hyljejoukkoihin, jotka suvisin asuvat
rauhoitettuina Tenojoen juoksevassa ja kristallikirkkaassa vedessä.
Täällä istuu koivun oksalla tahi tuuheissa pensaissa pohjolan
satakieli ja korottaa äänensä muiden laululintujen ääntä
korkeammalle. Niitä vilisee kuten kärpäsiä tuuheiden koivujen
keskellä ja istuu melkein jokaisessa pensaassa. Luulisipa niiden
etsineen tämän paikan kuullaksensa tuota verratonta taiteilijaa, joka
jaloilla, kauniilla ja suloisilla sävelillään matkii muiden laulua, josta se
onkin saanut suomalaisen nimensä "satakieli", lapiksi kielavelgo
(pikakielinen). Vaikka sitä tavataan melkein jokaisen Lapin puron
varrella, näkyy se erittäin valinneen lempipaikakseen tuuheat
pensaat ja koivut Tenojoen ja Utsjoen rannoilla. Puhtaimpina ja
heleimpinä soivat sen säveleet syvässä jokilaaksossa, jossa vuorien
kaiku vastaiselta rannalta vastaa sen pitkiin, kestäviin viserryksiin.
Koroittaen ja alentaen suloista ja ihanaa ääntänsä, se matkii ja
äänellänsä voittaa virtojen kohinan ja purojen lirinän. Peipposet,
sirkat, varpuset, tilhit, leivot, västäräkit, rastaat ja muut linnut tuntevat
itsensä voitetuiksi ja vaikenevat kun koiras satakieli keväisin
houkuttelee naaraan luoksensa rakentamaan hänen kanssansa
yhteistä pesää jonkun puun paljastetun juuren alle puron tai joen
rannalla, jossa sääsket miljoonittain ovat niille runsaana ravintona ja
estävät suurempia eläimiä saapumasta hävittämään niiden
turvatonta majaa, johon ne yhdistetyin voimin mitä pehmeimmistä
ruohoista, karvoista, untuvista ja höyhenistä valmistavat vastaisille
rakkaillensa vuoteen. Eikä ole vähemmän viehättävää niiden laulu,
kun joku liiaksi lähenee heidän rauhallista majaansa. Laulu muuttuu
silloin surusointuiseksi. Koiras näkyy sillä tahtovan varoittaa
kumppaliansa ja samassa herättää sääliä mahdollisessa
rauhanhäiritsijässä. Tenon jokilaakso onkin siksi viehättävä, että Itä-
Ruijan virkamiehet, nekin jotka asuvat Vesisaaressa, joka kuitenkin
on mieluisin paikka koko Varankivuonossa, matkustaessaan täällä
juhannuksen aikana virka-asioissa, usein tuovat mukanaan
naisväkensä, jotka aina jonkun vuoden kuluttua haluavat käydä
näillä ihanilla mailla Seidan ja Bonakaan seuduilla Puolmakin ja
Gullholman välillä.
Siitä hurmauksesta, johon olin joutunut, en selinnyt ennenkuin

lappalaiset palasivat. Heidän oli onnistunut löytää vene. Heti
istuttuani veneeseen juolahti mieleeni, ettei vene ollutkaan heidän
omansa. "Kenenkä luvalla olette ottaneet tämän veneen?" "Se on
Erkki Heikinpojan oma, tässä on hänen nimensä", vastasi heistä yksi
varsin levollisesti ja sanoi vastaavansa teostaan; siihen vielä lisäten:
"Hän on matkustanut Varankiin suoloja noutamaan". "Entä jos Erkki
palaa eikä tapaa venettänsä", väitin minä. "Niin odottakoon,
huomenna palaamme ja sitä paitsi", lisäsi hän rauhoittaen, "hän ei
palaa niin pian, sillä hän ainakin yhden päivän huvittelee
kauppalassa". Tenolaisillakaan ei ole omia veneitä Varangissa, vaan
käyttävät he, käydessään kauppaloissa, Varangin lappalaisten
veneitä, luvalla tai luvatta; ja saman omankäden ja maan tapaan
perustuvan oikeuden nojalla Varangin lappalaiset käyttävät, kun
tulevat Tenoon, siellä olevia veneitä. Sen vuoksi ei panna pahaksi,

Full Download pdf of Test Bank for McGraw Hill’s Taxation of Business Entities 2022 Edition, 13th Edition, Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver Ronald Worsham all chapter

Uploaded by

Copyright:

Available Formats

You might also like

Full Download pdf of Test Bank for McGraw Hill’s Taxation of Business Entities 2022 Edition, 13th Edition, Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver Ronald Worsham all chapter

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Full Download pdf of Test Bank for McGraw Hill’s Taxation of Business Entities 2022 Edition, 13th Edition, Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver Ronald Worsham all chapter

Uploaded by

Copyright:

Available Formats

Test Bank for McGraw Hill’s Taxation of

Business Entities 2022 Edition, 13th

Test Bank for McGraw Hill’s Taxation of Individuals

Solution Manual for McGraw Hill’s Taxation of

Test Bank for McGraw Hill’s Essentials of Federal

Test Bank for Hill’s Taxation of Individuals and

Test Bank for Hill’s Taxation of Individuals and

Solution Manual for Hill’s Taxation of Individuals and

Solution Manual for Hill’s Taxation of Individuals and

Solution Manual for McGraw-Hill’s Taxation of Business

4) Reasonable in amount means that expenditures can be exorbitant if the activity is

A) Incurred for the production of investment income

A) Whether an expenditure is related to a business activity.

32) Which of the following is a true statement?

A) A fine for a zoning violation.

37) Which of the following is a true statement?

A) Meals are never deductible as a business expense.

A) A client (not a supplier or vendor) must be present at the meal.

Airfare to New Jersey $ 2,000

45) Which of the following is a true statement?

48) Which of the following expenditures is completely deductible?

A) $1,000 spent on compensating your brother for a personal expense.

The correct answer is _____.

A) $1,500 "for AGI"

The correct answer is _____.

A) $1,920 "for AGI"

A) interest income, depreciation, amortization, or depletion; interest expense; and net

62) Which of the following cannot be selected as a valid tax year-end?

How much income should Bill realize on Schedule C?

How much income should Bill realize on Schedule C?

What is the maximum amount Clyde can deduct this year?

A) In August of last year

A) $500 is recognized in year 1, $6,000 in year 2, and $2,500 in year 3.

A) Sales of inventory on account

73) Mike started a calendar-year business on September 1 st of this year by paying 12

75) Which of the following is a payment liability?

A) $48,000 for the rent and $18,000 for the insurance

80) Big Homes Corporation is an accrual-method calendar-year taxpayer that manufactures

A) $12,000 because rebates are payment liabilities.

81) Big Homes Corporation is an accrual-method calendar-year taxpayer that manufactures

A) Spouse when the taxpayer is an individual.

A) Increase income by $420,000

A) Increase income by $422,500

Course Tuition $ 2,650

February through December last year $ 112,000 $ 84,500

February through December last year $ 113,100 $ 82,850

118) Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1 st

A necessary expense is an expense that is helpful or conducive to the

No deductions are allowed for expenditures that are against public

This is language from the IRC.

A greenhouse is likely to be capitalized rather than deducted as an

Arm's length is the test used to determine whether an expenditure is

All three situations involve suspicious payments to a related taxpayer

The deduction of each of the above expenditures is either limited or

All of the other alternatives are against public policy.

Expenses associated with the production of tax-exempt income are not

To deduct the cost of meals associated with an entertainment activity,

Employee meals can be fully deductible as compensation, and meals

The fine is against public policy, the three-year subscription must be