Question 1

If a taxpayer is due a refund,it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Accepted Answer

A) True 
 B)False

Question 2

Clay purchased Elm Corporation stock 20 years ago for $10,000.In 2013,he sells the stock for $29,000.What is Clay's gain or loss?

Accepted Answer

A) $19,000 long-term 
B) $19,000 short-term 
C) $19,000 ordinary 
D) $3,000,with the excess carried forward 
E) No gain or loss is recognized on this transaction 
A) $19,000 long-term 
B) $19,000 short-term 
C) $19,000 ordinary 
D) $3,000,with the excess carried forward 
E) No gain or loss is recognized on this transaction

Question 3

For taxpayers who do not itemize deductions,the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 4

William is a divorced taxpayer who provides a home for his dependent child,Edward.What filing status should William indicate on his tax return?

Accepted Answer

A) Head of household 
B) Married,filing separately 
C) Single 
D) Qualifying widower) 
E) None of the above 
A) Head of household 
B) Married,filing separately 
C) Single 
D) Qualifying widower) 
E) None of the above

Question 5

Most states are community property states.

Accepted Answer

A) True 
 B)False

Question 6

Rod,age 50,and Ann,age 49,are married taxpayers who file a joint return for 2013.They have gross income of $150,000.Their deductions for adjusted gross income are $5,000 and they have itemized deductions of $12,000,consisting of $7,000 in state income taxes and $5,000 in mortgage interest expense.If they 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.$145,000 = $150,00

Question 7

During 2013,Anita was entirely supported by her three sons,Dudley,Carlton,and Isidore,who provided support for her in the following percentages: Dudley $\quad$8 percent
Carlton $\quad$45 percent
Isidore $\quad$47 percent Which of the brothers may be allowed to claim his mother as a dependent,assuming a multiple support agreement exists?

Accepted Answer

A) Dudley 
B) Dudley or Carlton 
C) Carlton or Isidore 
D) Dudley,Carlton,or Isidore 
E) None of the above 
A) Dudley 
B) Dudley or Carlton 
C) Carlton or Isidore 
D) Dudley,Carlton,or Isidore 
E) None of the above

Question 8

A taxpayer with self-employment income of $600 must file a tax return.

Accepted Answer

A) True 
 B)False

Question 9

Martin,a 50 year-old single taxpayer,paid the full cost of maintaining his dependent mother in a home for the aged for the entire year.What is the amount of Martin's standard deduction for 2013?

Accepted Answer

A) $6,100 
B) $8,950 
C) $9,950 
D) $12,200 
E) None of the above 
A) $6,100 
B) $8,950 
C) $9,950 
D) $12,200 
E) None of the above

Question 10

List each alternative filing status available to unmarried individual taxpayers.

Accepted Answer

Single.
He

Question 11

Electronic filing e-filing):

Accepted Answer

A) Reduces the chances that the IRS will make mistakes when inputting tax return information. 
B) Generally results in a slower refund. 
C) Can be done only by telephone. 
D) Requires the services of a professional. 
A) Reduces the chances that the IRS will make mistakes when inputting tax return information. 
B) Generally results in a slower refund. 
C) Can be done only by telephone. 
D) Requires the services of a professional.

Question 12

A dependent child with earned income in excess of the available standard deduction amount must file a tax return.

Accepted Answer

A) True 
 B)False

If a taxpayer is due a refund,it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Clay purchased Elm Corporation stock 20 years ago for $10,000.In 2013,he sells the stock for $29,000.What is Clay's gain or loss?

For taxpayers who do not itemize deductions,the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

William is a divorced taxpayer who provides a home for his dependent child,Edward.What filing status should William indicate on his tax return?

Most states are community property states.

A taxpayer with self-employment income of $600 must file a tax return.

Martin,a 50 year-old single taxpayer,paid the full cost of maintaining his dependent mother in a home for the aged for the entire year.What is the amount of Martin's standard deduction for 2013?

List each alternative filing status available to unmarried individual taxpayers.

Electronic filing e-filing):

A dependent child with earned income in excess of the available standard deduction amount must file a tax return.

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

If a taxpayer is due a refund,it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Clay purchased Elm Corporation stock 20 years ago for $10,000.In 2013,he sells the stock for $29,000.What is Clay's gain or loss?

For taxpayers who do not itemize deductions,the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

William is a divorced taxpayer who provides a home for his dependent child,Edward.What filing status should William indicate on his tax return?

Most states are community property states.

A taxpayer with self-employment income of $600 must file a tax return.

Martin,a 50 year-old single taxpayer,paid the full cost of maintaining his dependent mother in a home for the aged for the entire year.What is the amount of Martin's standard deduction for 2013?

List each alternative filing status available to unmarried individual taxpayers.

Electronic filing e-filing):

A dependent child with earned income in excess of the available standard deduction amount must file a tax return.

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