Question 1

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

Accepted Answer

A) True 
 B)False

Question 2

An individual with $500,000 taxable income has the same marginal rate as a single taxpayer or as a head of household.

Accepted Answer

A) True 
 B)False

Question 3

The unextended due date for the individual tax return (Form 1040) is the 15th day of the third month following the close of the taxable year.

Accepted Answer

A) True 
 B)False

Question 4

In computing taxable income, an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

Accepted Answer

A) True 
 B)False

Question 5

The majority of individual taxpayers take the standard deduction rather than itemizing.

Accepted Answer

A) True 
 B)False

Question 6

Mr. Thomas is age 69, has perfect vision, and files as a single taxpayer. His standard deduction for 2013 is $7,600.

Accepted Answer

A) True 
 B)False

Question 7

Mr. and Mrs. Jelk file a joint return. They provide 65% of the financial support for David, the 14-year old son of a friend who died three years ago. David lives in the home of his aunt Sarah, who provides 35% of his financial support. Which of the following statements is true?

Accepted Answer

A) David is a qualifying child of the Jelks. 
B) If David earns less than $3,900 gross income this year, he is a qualifying child of the Jelks. 
C) If David earns less than $3,900 gross income this year, he is a qualifying relative of the Jelks. 
D) David is neither a qualifying child nor a qualifying relative of the Jelks. 
A) David is a qualifying child of the Jelks. 
B) If David earns less than $3,900 gross income this year, he is a qualifying child of the Jelks. 
C) If David earns less than $3,900 gross income this year, he is a qualifying relative of the Jelks. 
D) David is neither a qualifying child nor a qualifying relative of the Jelks.

Question 8

Linda and Raj are engaged to be married. Linda's 2013 taxable income as a single individual would be $83,500. Raj's 2013 taxable income as a single individual would be $118,000. When they marry before the end of 2013, how much of a marriage penalty will they incur?

Accepted Answer

A) $0 
B) $388 
C) $749 
D) None of the above 
A) $0 
B) $388 
C) $749 
D) None of the above

Question 9

Which of the following statements regarding the calculation of taxable income is false?

Accepted Answer

A) The first step in the calculation of taxable income is determining the taxpayer's total income. 
B) Adjusted gross income is equal to total income less above-the-line deductions. 
C) Adjusted gross income can be reduced by the greater of the standard deduction or itemized deductions. 
D) Taxpayers are allowed to deduct the greater of itemized deductions or above-the-line deductions in calculating taxable income. 
A) The first step in the calculation of taxable income is determining the taxpayer's total income. 
B) Adjusted gross income is equal to total income less above-the-line deductions. 
C) Adjusted gross income can be reduced by the greater of the standard deduction or itemized deductions. 
D) Taxpayers are allowed to deduct the greater of itemized deductions or above-the-line deductions in calculating taxable income.

Question 10

Alice is an unmarried individual. She has $182,340 taxable income in 2013. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Accepted Answer

A) Single $44,348; head of household $39,892 
B) Single $60,172; head of household $51,055 
C) Single $44,348; head of household $41,794 
D) None of the above 
A) Single $44,348; head of household $39,892 
B) Single $60,172; head of household $51,055 
C) Single $44,348; head of household $41,794 
D) None of the above

Question 11

Which of the following statements regarding a qualifying child is false?

Accepted Answer

A) The child must have been alive at least 180 days during the tax year. 
B) The child must be a U.S.citizen or resident of the United States, Canada, or Mexico. 
C) The child must not have provided more than 50% of his or her own financial support during the year. 
D) The child must not have filed a joint return with a spouse unless the return was filed only as a refund claim. 
A) The child must have been alive at least 180 days during the tax year. 
B) The child must be a U.S.citizen or resident of the United States, Canada, or Mexico. 
C) The child must not have provided more than 50% of his or her own financial support during the year. 
D) The child must not have filed a joint return with a spouse unless the return was filed only as a refund claim.

Question 12

Benjamin, who files as a single taxpayer, has $359,900 taxable income in 2013. Compute his regular tax liability.

Accepted Answer

A) $102,898 
B) $112,684 
C) $118,767 
D) None of the above 
A) $102,898 
B) $112,684 
C) $118,767 
D) None of the above

Question 13

Mr. and Mrs. Anderson file a joint return. They provide more than 50% of the financial support of their two children, Dana, age 26, and John, age 17. Both children live in the Andersons' home. Dana earned $7,100 from a part-time job, while John earned no income this year. Which of the following statements is true?

Accepted Answer

A) Both Dana and John are qualifying children of the Andersons. 
B) Dana is a qualifying relative and John is a qualifying child of the Andersons. 
C) John is a qualifying child of the Andersons. 
D) Neither Dana nor John is a qualifying child of the Andersons. 
A) Both Dana and John are qualifying children of the Andersons. 
B) Dana is a qualifying relative and John is a qualifying child of the Andersons. 
C) John is a qualifying child of the Andersons. 
D) Neither Dana nor John is a qualifying child of the Andersons.

Question 14

Mr. and Mrs. Toliver's AGI on their jointly filed return is $339,000. Regardless of the number of their children, the Tolivers are not eligible for a child credit.

Accepted Answer

A) True 
 B)False

Question 15

In order to be claimed as a dependent, an individual must be either a qualifying child or a qualifying relative.

Accepted Answer

A) True 
 B)False

Question 16

An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions and the exemption amount.

Accepted Answer

A) True 
 B)False

Question 17

Mr. and Mrs. Kline file a joint return on which they claim the standard deduction and two exemptions. If the taxable income on their return is $55,300, they are not paying a marriage penalty.

Accepted Answer

A) True 
 B)False

Question 18

Ms. Kilo is an unmarried individual. She has $219,344 taxable income in 2013. Compute Ms. Kilo's regular tax liability if she files as a single taxpayer and if she files as a surviving spouse.

Accepted Answer

A) Single $57,500; surviving spouse $61,924 
B) Single $56,514; surviving spouse $54,174 
C) Single $43,896; surviving spouse $48,882 
D) None of the above 
A) Single $57,500; surviving spouse $61,924 
B) Single $56,514; surviving spouse $54,174 
C) Single $43,896; surviving spouse $48,882 
D) None of the above

Question 19

In computing taxable income, an individual is allowed to deduct the lesser of itemized deductions or the standard deduction.

Accepted Answer

A) True 
 B)False

Question 20

Lennie and Margo spent $2,800 for child care for their 7-year-old son. Lennie's earned income was $41,000, Margo's earned income was $24,800, and the AGI on their joint return was $71,200. Calculate their dependent care credit.

Accepted Answer

A) $0 
B) $560 
C) $980 
D) $2,800 
A) $0 
B) $560 
C) $980 
D) $2,800

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

An individual with $500,000 taxable income has the same marginal rate as a single taxpayer or as a head of household.

The unextended due date for the individual tax return (Form 1040) is the 15^th day of the third month following the close of the taxable year.

In computing taxable income, an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

The majority of individual taxpayers take the standard deduction rather than itemizing.

Mr. Thomas is age 69, has perfect vision, and files as a single taxpayer. His standard deduction for 2013 is $7,600.

Mr. and Mrs. Jelk file a joint return. They provide 65% of the financial support for David, the 14-year old son of a friend who died three years ago. David lives in the home of his aunt Sarah, who provides 35% of his financial support. Which of the following statements is true?

Linda and Raj are engaged to be married. Linda's 2013 taxable income as a single individual would be $83,500. Raj's 2013 taxable income as a single individual would be $118,000. When they marry before the end of 2013, how much of a marriage penalty will they incur?

Which of the following statements regarding the calculation of taxable income is false?

Alice is an unmarried individual. She has $182,340 taxable income in 2013. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Which of the following statements regarding a qualifying child is false?

Benjamin, who files as a single taxpayer, has $359,900 taxable income in 2013. Compute his regular tax liability.

Mr. and Mrs. Toliver's AGI on their jointly filed return is $339,000. Regardless of the number of their children, the Tolivers are not eligible for a child credit.

In order to be claimed as a dependent, an individual must be either a qualifying child or a qualifying relative.

An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions and the exemption amount.

Mr. and Mrs. Kline file a joint return on which they claim the standard deduction and two exemptions. If the taxable income on their return is $55,300, they are not paying a marriage penalty.

Ms. Kilo is an unmarried individual. She has $219,344 taxable income in 2013. Compute Ms. Kilo's regular tax liability if she files as a single taxpayer and if she files as a surviving spouse.

In computing taxable income, an individual is allowed to deduct the lesser of itemized deductions or the standard deduction.

Lennie and Margo spent $2,800 for child care for their 7-year-old son. Lennie's earned income was $41,000, Margo's earned income was $24,800, and the AGI on their joint return was $71,200. Calculate their dependent care credit.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

Filters

Exam 14: The Individual Tax Formula

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

An individual with $500,000 taxable income has the same marginal rate as a single taxpayer or as a head of household.

The unextended due date for the individual tax return (Form 1040) is the 15th day of the third month following the close of the taxable year.

In computing taxable income, an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

The majority of individual taxpayers take the standard deduction rather than itemizing.

Mr. Thomas is age 69, has perfect vision, and files as a single taxpayer. His standard deduction for 2013 is $7,600.

Mr. and Mrs. Jelk file a joint return. They provide 65% of the financial support for David, the 14-year old son of a friend who died three years ago. David lives in the home of his aunt Sarah, who provides 35% of his financial support. Which of the following statements is true?

Linda and Raj are engaged to be married. Linda's 2013 taxable income as a single individual would be $83,500. Raj's 2013 taxable income as a single individual would be $118,000. When they marry before the end of 2013, how much of a marriage penalty will they incur?

Which of the following statements regarding the calculation of taxable income is false?

Alice is an unmarried individual. She has $182,340 taxable income in 2013. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Which of the following statements regarding a qualifying child is false?

Benjamin, who files as a single taxpayer, has $359,900 taxable income in 2013. Compute his regular tax liability.

Mr. and Mrs. Toliver's AGI on their jointly filed return is $339,000. Regardless of the number of their children, the Tolivers are not eligible for a child credit.

In order to be claimed as a dependent, an individual must be either a qualifying child or a qualifying relative.

An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions and the exemption amount.

Mr. and Mrs. Kline file a joint return on which they claim the standard deduction and two exemptions. If the taxable income on their return is $55,300, they are not paying a marriage penalty.

Ms. Kilo is an unmarried individual. She has $219,344 taxable income in 2013. Compute Ms. Kilo's regular tax liability if she files as a single taxpayer and if she files as a surviving spouse.

In computing taxable income, an individual is allowed to deduct the lesser of itemized deductions or the standard deduction.

Lennie and Margo spent $2,800 for child care for their 7-year-old son. Lennie's earned income was $41,000, Margo's earned income was $24,800, and the AGI on their joint return was $71,200. Calculate their dependent care credit.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

Filters

The unextended due date for the individual tax return (Form 1040) is the 15^th day of the third month following the close of the taxable year.