Question 1

Interest on U.S.Treasury Bonds is not taxable.

Accepted Answer

A) True 
 B)False

Question 2

Terry receives $3,000 annually from an annuity contract which she purchased in 2003 for $15,000.Her total expected return under the contract is $45,000 and payments under the contract began in 2004.For the years 2004 through 2013,Terry received $3,000 per year.Of the $3,000 received during 2013,what amount must Terry include in her gross income for 2013 under the general rule?

Accepted Answer

A) $3,000 
B) $2,062 
C) $2,000 
D) $1,000 
E) None of the above 
A) $3,000 
B) $2,062 
C) $2,000 
D) $1,000 
E) None of the above

Question 3

As a Christmas thank you for being a good employee,Ed's TV Repair gave 62-year-old Edwina three shares of its stock worth $20 per share.Edwina then received dividends of $1 per share related to the stock.How much should be included in Edwina's gross income?

Accepted Answer

A) $0 
B) $3 
C) $60 
D) $63 
E) None of the above 
A) $0 
B) $3 
C) $60 
D) $63 
E) None of the above

Question 4

Which of the following would result in life insurance proceeds that are taxable to the recipient?

Accepted Answer

A) A life insurance policy transferred to a creditor in payment of a debt 
B) A life insurance policy in which the insured is the daughter of the taxpayer and the beneficiary is the taxpayer 
C) A life insurance policy transferred by a shareholder to a corporation 
D) A life insurance policy purchased by a taxpayer insuring his or her business partner 
E) A life insurance policy purchased by a corporation insuring an officer. 
A) A life insurance policy transferred to a creditor in payment of a debt 
B) A life insurance policy in which the insured is the daughter of the taxpayer and the beneficiary is the taxpayer 
C) A life insurance policy transferred by a shareholder to a corporation 
D) A life insurance policy purchased by a taxpayer insuring his or her business partner 
E) A life insurance policy purchased by a corporation insuring an officer.

Question 5

Which of the following is not taxable income?

Accepted Answer

A) Dividends 
B) Income from relief of debt 
C) Interest 
D) Royalties 
E) Welfare benefits 
A) Dividends 
B) Income from relief of debt 
C) Interest 
D) Royalties 
E) Welfare benefits

Question 6

Unemployment compensation is fully taxable to the individual receiving the compensation.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following fringe benefits is taxable to the employee receiving the benefit?

Accepted Answer

A) A subscription to a tax journal provided by the employer to a corporation's tax accountant 
B) A small discount on toys granted to the salesperson for a toy store 
C) Incidental use of the company's copier by an office worker 
D) A 15 percent discount on investment real estate granted to the employee of a real estate developer 
E) All of the above are tax-free 
A) A subscription to a tax journal provided by the employer to a corporation's tax accountant 
B) A small discount on toys granted to the salesperson for a toy store 
C) Incidental use of the company's copier by an office worker 
D) A 15 percent discount on investment real estate granted to the employee of a real estate developer 
E) All of the above are tax-free

Interest on U.S.Treasury Bonds is not taxable.

As a Christmas thank you for being a good employee,Ed's TV Repair gave 62-year-old Edwina three shares of its stock worth $20 per share.Edwina then received dividends of $1 per share related to the stock.How much should be included in Edwina's gross income?

Which of the following would result in life insurance proceeds that are taxable to the recipient?

Which of the following is not taxable income?

Unemployment compensation is fully taxable to the individual receiving the compensation.

Which of the following fringe benefits is taxable to the employee receiving the benefit?

The Individual Income Tax Return

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 2: Gross Income and Exclusions

Interest on U.S.Treasury Bonds is not taxable.

As a Christmas thank you for being a good employee,Ed's TV Repair gave 62-year-old Edwina three shares of its stock worth $20 per share.Edwina then received dividends of $1 per share related to the stock.How much should be included in Edwina's gross income?

Which of the following would result in life insurance proceeds that are taxable to the recipient?

Which of the following is not taxable income?

Unemployment compensation is fully taxable to the individual receiving the compensation.

Which of the following fringe benefits is taxable to the employee receiving the benefit?

The Individual Income Tax Return

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters