Question 1

Taxable income for an individual is defined as

Accepted Answer

A)  AGI reduced by itemized deductions. 
B)  AGI reduced by personal and dependency exemptions. 
C)  total income reduced by the standard deduction. 
D)  AGI reduced by deductions from AGI and personal and dependency exemptions. 
A)  AGI reduced by itemized deductions. 
B)  AGI reduced by personal and dependency exemptions. 
C)  total income reduced by the standard deduction. 
D)  AGI reduced by deductions from AGI and personal and dependency exemptions.

Question 2

Juanita's mother lives with her.Juanita purchased clothing for her mother costing $1,000 and provided her with a room that Juanita estimates she could have rented for $4,000.Juanita spent $5,000 on groceries she shared with her mother.Juanita also paid $700 for her mother's health insurance coverage.How much of these costs is considered support?

Accepted Answer

A)  $5,000 
B)  $8,200 
C)  $10,000 
D)  $10,700 
A)  $5,000 
B)  $8,200 
C)  $10,000 
D)  $10,700

Question 3

Frank,age 17,received $4,000 of dividends and $1,500 from a part-time job.Frank is a dependent of his parents who are in the 28% percent bracket.Frank's 2017 taxable income is

Accepted Answer

A)  $0. 
B)  $4,000. 
C)  $4,450. 
D)  $3,650. 
A)  $0. 
B)  $4,000. 
C)  $4,450. 
D)  $3,650.

Question 4

Gina Lewis,age 12,is claimed as a dependent on her parent's return.She is their only child.She earned $2,300 from a summer job.She also earned interest of $2,750.Her parents' marginal tax rate is 28 percent.
Required:
a.Compute the amount of Gina's tax liability for 2017.
b.Can Gina's parents take a child tax credit for her?

Accepted Answer

@#IMG-DLM& Tax liability:
Gina's net unearned inco

Question 5

An unmarried taxpayer may file as head of household if he maintains a home for his qualifying child.

Accepted Answer

A) True 
 B)False

Question 6

In 2017,Brett and Lashana (both 50 years old) file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is

Accepted Answer

A)  $12,700. 
B)  $13,950. 
C)  $14,250. 
D)  $7,900. 
A)  $12,700. 
B)  $13,950. 
C)  $14,250. 
D)  $7,900.

Question 7

The only business entity that pays federal income taxes is the C corporation.

Accepted Answer

A) True 
 B)False

Question 8

Steve Greene,age 66,is divorced with no dependents.In 2017 Steve had income and expenses as follows:
   
Compute Steve's taxable income for 2017.Show all calculations.

Accepted Answer

@#IMG-DLM& The additional stan

Question 9

An individual who is claimed as a dependent by another person is not entitled to a personal exemption on his or her own return.

Accepted Answer

A) True 
 B)False

Question 10

Mr.and Mrs.Kusra are in the top tax bracket.They have just had a baby.The Kusras plan to gift a corporate bond they currently own to the baby.The bond pays $2,100 of interest income per year.The Kusra family overall will save taxes if the bond is transferred to the child.

Accepted Answer

A) True 
 B)False

Question 11

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Accepted Answer

A)  he or she and the decedent must have shared the same household as of date of death. 
B)  he or she must be a U.S. citizen or resident. 
C)  he or she must be qualified to file a joint return in the year of death. 
D)  he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home. 
A)  he or she and the decedent must have shared the same household as of date of death. 
B)  he or she must be a U.S. citizen or resident. 
C)  he or she must be qualified to file a joint return in the year of death. 
D)  he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home.

Question 12

Generally,itemized deductions are personal expenses specifically allowed by the tax law.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not considered support for the dependent support test?

Accepted Answer

A)  food 
B)  clothing 
C)  rental value of lodging 
D)  value of services rendered by the taxpayer for the dependent 
A)  food 
B)  clothing 
C)  rental value of lodging 
D)  value of services rendered by the taxpayer for the dependent

Question 14

The regular standard deduction is available to which one of the following taxpayers?

Accepted Answer

A)  a married taxpayer filing a separate return where the other spouse itemizes 
B)  a person who has only unearned income and is a dependent of another 
C)  a nonresident alien 
D)  a same sex couple married under New York state law. 
A)  a married taxpayer filing a separate return where the other spouse itemizes 
B)  a person who has only unearned income and is a dependent of another 
C)  a nonresident alien 
D)  a same sex couple married under New York state law.

Question 15

Which of the following dependent relatives does not have to live in the same household as the taxpayer who is claiming head of household filing status?

Accepted Answer

A)  uncle 
B)  brother 
C)  father 
D)  nephew 
A)  uncle 
B)  brother 
C)  father 
D)  nephew

Question 16

All of the following items are generally excluded from income except

Accepted Answer

A)  child support payments. 
B)  interest on corporate bonds. 
C)  interest on state and local government bonds. 
D)  life insurance proceeds paid by reason of death. 
A)  child support payments. 
B)  interest on corporate bonds. 
C)  interest on state and local government bonds. 
D)  life insurance proceeds paid by reason of death.

Question 17

All of the following items are deductions for adjusted gross income except

Accepted Answer

A)  moving expenses. 
B)  unreimbursed employee business expenses. 
C)  qualifying contributions to individual retirement accounts. 
D)  one-half of self-employment taxes on year's earnings. 
A)  moving expenses. 
B)  unreimbursed employee business expenses. 
C)  qualifying contributions to individual retirement accounts. 
D)  one-half of self-employment taxes on year's earnings.

Question 18

Carter dies on January 1,2017.A joint return election is made in 2017 and Marjorie properly qualifies as a surviving spouse for the two following years.Marjorie has one child that she claims as a dependent for this same period.The number of personal and dependency exemptions allowed Marjorie in 2017 and in 2018,respectively:

Accepted Answer

A)  1 and 1. 
B)  2 and 2. 
C)  3 and 2. 
D)  3 and 3. 
A)  1 and 1. 
B)  2 and 2. 
C)  3 and 2. 
D)  3 and 3.

Question 19

In 2014,Leo's wife died.Leo has two small children,ages 2 and 4,living at home whom he supports entirely.Leo does not remarry and is not claimed as a dependent on another's return during any of this period.In 2015,2016,and 2017,Leo's most advantageous filing status is,respectively

Accepted Answer

A)  single for all three years. 
B)  head of household for all three years. 
C)  surviving spouse, surviving spouse, head of household. 
D)  surviving spouse, surviving spouse, single. 
A)  single for all three years. 
B)  head of household for all three years. 
C)  surviving spouse, surviving spouse, head of household. 
D)  surviving spouse, surviving spouse, single.

Question 20

Nonresident aliens are allowed a full standard deduction.

Accepted Answer

A) True 
 B)False

Taxable income for an individual is defined as

Frank,age 17,received $4,000 of dividends and $1,500 from a part-time job.Frank is a dependent of his parents who are in the 28% percent bracket.Frank's 2017 taxable income is

An unmarried taxpayer may file as head of household if he maintains a home for his qualifying child.

In 2017,Brett and Lashana (both 50 years old) file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is

The only business entity that pays federal income taxes is the C corporation.

Steve Greene,age 66,is divorced with no dependents.In 2017 Steve had income and expenses as follows: Compute Steve's taxable income for 2017.Show all calculations.

An individual who is claimed as a dependent by another person is not entitled to a personal exemption on his or her own return.

Mr.and Mrs.Kusra are in the top tax bracket.They have just had a baby.The Kusras plan to gift a corporate bond they currently own to the baby.The bond pays $2,100 of interest income per year.The Kusra family overall will save taxes if the bond is transferred to the child.

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Generally,itemized deductions are personal expenses specifically allowed by the tax law.

Which of the following is not considered support for the dependent support test?

The regular standard deduction is available to which one of the following taxpayers?

Which of the following dependent relatives does not have to live in the same household as the taxpayer who is claiming head of household filing status?

All of the following items are generally excluded from income except

All of the following items are deductions for adjusted gross income except

In 2014,Leo's wife died.Leo has two small children,ages 2 and 4,living at home whom he supports entirely.Leo does not remarry and is not claimed as a dependent on another's return during any of this period.In 2015,2016,and 2017,Leo's most advantageous filing status is,respectively

Nonresident aliens are allowed a full standard deduction.

An Introduction to Taxation

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

Exam 2: Determination of Tax

Taxable income for an individual is defined as

Frank,age 17,received $4,000 of dividends and $1,500 from a part-time job.Frank is a dependent of his parents who are in the 28% percent bracket.Frank's 2017 taxable income is

An unmarried taxpayer may file as head of household if he maintains a home for his qualifying child.

In 2017,Brett and Lashana (both 50 years old) file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is

The only business entity that pays federal income taxes is the C corporation.

Steve Greene,age 66,is divorced with no dependents.In 2017 Steve had income and expenses as follows: Compute Steve's taxable income for 2017.Show all calculations.

An individual who is claimed as a dependent by another person is not entitled to a personal exemption on his or her own return.

Mr.and Mrs.Kusra are in the top tax bracket.They have just had a baby.The Kusras plan to gift a corporate bond they currently own to the baby.The bond pays $2,100 of interest income per year.The Kusra family overall will save taxes if the bond is transferred to the child.

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Generally,itemized deductions are personal expenses specifically allowed by the tax law.

Which of the following is not considered support for the dependent support test?

The regular standard deduction is available to which one of the following taxpayers?

Which of the following dependent relatives does not have to live in the same household as the taxpayer who is claiming head of household filing status?

All of the following items are generally excluded from income except

All of the following items are deductions for adjusted gross income except

In 2014,Leo's wife died.Leo has two small children,ages 2 and 4,living at home whom he supports entirely.Leo does not remarry and is not claimed as a dependent on another's return during any of this period.In 2015,2016,and 2017,Leo's most advantageous filing status is,respectively

Nonresident aliens are allowed a full standard deduction.

An Introduction to Taxation

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters