Question 1

The 3.8 percent ACA Medicare surtax does not apply to:

Accepted Answer

A) Interest 
B) Dividends 
C) Capital gains 
D) Wages 
A) Interest 
B) Dividends 
C) Capital gains 
D) Wages

Question 2

In which of the following situations is the taxpayer not required to file an income tax return?

Accepted Answer

A) When an individual has a 2013 income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800 in 2013. 
C) When the taxpayer is a 35-year-old head of household with wages of $16,800 in 2013. 
D) When the taxpayer is a 79-year-old widow with wages of $16,500 in 2013. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $22,000 in 2013. 
A) When an individual has a 2013 income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800 in 2013. 
C) When the taxpayer is a 35-year-old head of household with wages of $16,800 in 2013. 
D) When the taxpayer is a 79-year-old widow with wages of $16,500 in 2013. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $22,000 in 2013.

Question 3

Fran bought stock in the FCM Corporation 4 years ago at a price of $18,000.She sold it this year for $22,500 and paid her broker $225 from the proceeds of the sale.
a.What is Fran's amount realized?
b.What is Fran's adjusted basis?
c.What is Fran's realized gain or loss?
d.What is Fran's recognized gain or loss?
e.How much of the gain or loss should be included in her tax return?

Accepted Answer

a.Amount realized: $22,275 = $22,500 - $

Question 4

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

Accepted Answer

A) The deduction for job hunting expenses. 
B) The charitable deduction. 
C) The moving expense deduction for adjusted gross income. 
D) The deduction for soil and water conservation costs available to farmers. 
E) None of the above. 
A) The deduction for job hunting expenses. 
B) The charitable deduction. 
C) The moving expense deduction for adjusted gross income. 
D) The deduction for soil and water conservation costs available to farmers. 
E) None of the above.

Question 5

List if a form is used for an individual,a corporation,or a partnership tax return.
a.Form 1065
b.Schedule A,Itemized Deductions
c.Form 1040
d.Form 1120
e.Schedule B,Interest and Dividends

Accepted Answer

a.Partnership
b.Indi

Question 6

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is correct?

Accepted Answer

A) An individual is a reporting entity but not a taxable entity. 
B) A partnership is a taxable entity and a reporting entity. 
C) A corporation is a reporting entity but not a taxable entity. 
D) A partnership is a reporting entity but not a taxable entity. 
A) An individual is a reporting entity but not a taxable entity. 
B) A partnership is a taxable entity and a reporting entity. 
C) A corporation is a reporting entity but not a taxable entity. 
D) A partnership is a reporting entity but not a taxable entity.

Question 8

Mark each of the following as a taxable entity or as a reporting entity:
a.Individuals
b.Corporations
c.Partnerships

Accepted Answer

a.Taxable entity
b.T

Question 9

Jessica,a 17-year-old guitarist in a successful band,earns $100,000 a year and is completely self- supporting although she lives with her parents.Can her parents claim her as a dependent? Why or why not?

Accepted Answer

Because Jessica is self-suppor

Question 10

Roger,age 39,and Lucy,age 37,are married taxpayers who file a joint income tax return for 2013.They have gross income of $25,400.Their deductions for adjusted gross income are $550 and they have itemized deductions of $5,300.If Roger and Lucy claim two personal exemptions and no dependency exemptions for 2013,calculate the following amounts:
a.Their adjusted gross income
b.The greater of the amount of their standard deduction or their itemized deductions
c.Their taxable income

Accepted Answer

a.$24,850 = $25,400

Question 11

Married taxpayers may double their standard deduction amount by filing separate returns.

Accepted Answer

A) True 
 B)False

Question 12

If an individual wishes to amend his individual tax return,he will make the amendment using what form?

Accepted Answer

A) Form 1040A 
B) Form 1040X 
C) Form 1120 
D) Schedule K-1 
E) None of the above 
A) Form 1040A 
B) Form 1040X 
C) Form 1120 
D) Schedule K-1 
E) None of the above

Question 13

The head of household tax rates are higher than the rates for a single taxpayer.

Accepted Answer

A) True 
 B)False

Question 14

List two general objectives of the tax code.

Accepted Answer

The tax code promote

Question 15

The two types of exemptions are the personal exemption and the dependency exemption.

Accepted Answer

A) True 
 B)False

Question 16

Partnerships:

Accepted Answer

A) Are not taxable entities. 
B) Are taxed in the same manner as individuals. 
C) File tax returns on Form 1120. 
D) File tax returns on Form 1041. 
A) Are not taxable entities. 
B) Are taxed in the same manner as individuals. 
C) File tax returns on Form 1120. 
D) File tax returns on Form 1041.

Question 17

For 2013,personal and dependency exemptions are $3,900 each.

Accepted Answer

A) True 
 B)False

Question 18

A married person with a dependent child may choose to file as head of household if it reduces his or her tax liability.

Accepted Answer

A) True 
 B)False

Question 19

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

Accepted Answer

A taxpayer should claim the la

Question 20

A taxpayer who is living alone and is legally separated from his or her spouse under a separate maintenance decree at year-end should file as single.

Accepted Answer

A) True 
 B)False

The 3.8 percent ACA Medicare surtax does not apply to:

In which of the following situations is the taxpayer not required to file an income tax return?

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

List if a form is used for an individual,a corporation,or a partnership tax return. a.Form 1065 b.Schedule A,Itemized Deductions c.Form 1040 d.Form 1120 e.Schedule B,Interest and Dividends

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

Which of the following is correct?

Mark each of the following as a taxable entity or as a reporting entity: a.Individuals b.Corporations c.Partnerships

Jessica,a 17-year-old guitarist in a successful band,earns $100,000 a year and is completely self- supporting although she lives with her parents.Can her parents claim her as a dependent? Why or why not?

Married taxpayers may double their standard deduction amount by filing separate returns.

If an individual wishes to amend his individual tax return,he will make the amendment using what form?

The head of household tax rates are higher than the rates for a single taxpayer.

List two general objectives of the tax code.

The two types of exemptions are the personal exemption and the dependency exemption.

Partnerships:

For 2013,personal and dependency exemptions are $3,900 each.

A married person with a dependent child may choose to file as head of household if it reduces his or her tax liability.

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

A taxpayer who is living alone and is legally separated from his or her spouse under a separate maintenance decree at year-end should file as single.

Gross Income and Exclusions

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 1: The Individual Income Tax Return

The 3.8 percent ACA Medicare surtax does not apply to:

In which of the following situations is the taxpayer not required to file an income tax return?

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

List if a form is used for an individual,a corporation,or a partnership tax return. a.Form 1065 b.Schedule A,Itemized Deductions c.Form 1040 d.Form 1120 e.Schedule B,Interest and Dividends

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

Which of the following is correct?

Mark each of the following as a taxable entity or as a reporting entity: a.Individuals b.Corporations c.Partnerships

Jessica,a 17-year-old guitarist in a successful band,earns $100,000 a year and is completely self- supporting although she lives with her parents.Can her parents claim her as a dependent? Why or why not?

Married taxpayers may double their standard deduction amount by filing separate returns.

If an individual wishes to amend his individual tax return,he will make the amendment using what form?

The head of household tax rates are higher than the rates for a single taxpayer.

List two general objectives of the tax code.

The two types of exemptions are the personal exemption and the dependency exemption.

Partnerships:

For 2013,personal and dependency exemptions are $3,900 each.

A married person with a dependent child may choose to file as head of household if it reduces his or her tax liability.

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

A taxpayer who is living alone and is legally separated from his or her spouse under a separate maintenance decree at year-end should file as single.

Gross Income and Exclusions

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