Question 1

All tax-exempt bond interest income is classified as an AMT preference.

Accepted Answer

A) True 
 B)False

Question 2

Drake and Davina are married and file a joint return for 2017 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes.Their regular tax liability is $16,478.What is the amount of their total tax liability?

Accepted Answer

A)  $17,290 
B)  $39,260 
C)  $33,768 
D)  $16,478 
A)  $17,290 
B)  $39,260 
C)  $33,768 
D)  $16,478

Question 3

The general business credit may not exceed the net income tax minus the greater of the tentative minimum tax or

Accepted Answer

A)  20% of the net regular tax liability above $20,000. 
B)  25% of the net regular tax liability above $20,000. 
C)  20% of the net regular tax liability above $25,000. 
D)  25% of the net regular tax liability above $25,000. 
A)  20% of the net regular tax liability above $20,000. 
B)  25% of the net regular tax liability above $20,000. 
C)  20% of the net regular tax liability above $25,000. 
D)  25% of the net regular tax liability above $25,000.

Question 4

Mr.and Mrs.Lewis have an alternative minimum tax base of $312,000.Their tentative minimum tax will be

Accepted Answer

A)  $81,120. 
B)  $87,360. 
C)  $70,521. 
D)  $83,604. 
A)  $81,120. 
B)  $87,360. 
C)  $70,521. 
D)  $83,604.

Question 5

To help retain its talented workforce,Zapper Corporation opens a child care facility in the building next to its offices.It spends $200,000 on rent,salaries and supplies.With respect to the $200,000 expenditure,Zapper will be entitled to a tax credit and a tax deduction of

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 6

All of the following statements are true regarding the Lifetime Learning Credit except which one?

Accepted Answer

A)  In order to qualify for the Lifetime Learning Credit, a student must be enrolled at least 1/2 time. 
B)  Qualifying expenses include those for tuition and related fees but not for room and board. 
C)  The Lifetime Learning credit may be claimed for any degree or nondegree course at a college or university that helps an individual acquire or improve their job skills. 
D)  The Lifetime Learning credit and the American Opportunity Tax credit may not be taken in the same tax year with respect to the same student's tuition and related fees. 
A)  In order to qualify for the Lifetime Learning Credit, a student must be enrolled at least 1/2 time. 
B)  Qualifying expenses include those for tuition and related fees but not for room and board. 
C)  The Lifetime Learning credit may be claimed for any degree or nondegree course at a college or university that helps an individual acquire or improve their job skills. 
D)  The Lifetime Learning credit and the American Opportunity Tax credit may not be taken in the same tax year with respect to the same student's tuition and related fees.

Question 7

Ivan has generated the following taxes and credits this year:
   
How much general business credit will he apply to the current year tax liability?

Accepted Answer

@#IMG-DLM& The general business credit is applied

Question 8

In 2017,Rita is divorced with one child.She has AGI of $20,000 resulting in a federal income tax liability of $255 and an earned income credit of $3,135.She has had $550 of federal income taxes withheld from her pay.Rita will receive a federal income refund of

Accepted Answer

A)  $550. 
B)  $2,880. 
C)  $3,135. 
D)  $3,430. 
A)  $550. 
B)  $2,880. 
C)  $3,135. 
D)  $3,430.

Question 9

Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?

Accepted Answer

A)  $0 
B)  $769 
C)  $855 
D)  $3,625 
A)  $0 
B)  $769 
C)  $855 
D)  $3,625

Question 10

Doggie Rx Inc.is a new company developing a tasty chewable pill for dogs that will protect them from all types of fleas,ticks and intestinal parasites.This is its first year of business,and it has spent $500,000 on qualifying research expenditures.Doggie Rx will earned a simplified research credit of

Accepted Answer

A)  $30,000. 
B)  $70,000. 
C)  $15,000. 
D)  $250,000. 
A)  $30,000. 
B)  $70,000. 
C)  $15,000. 
D)  $250,000.

Question 11

Hong earns $127,300 in her job as a physician's assistant.She also has her own business selling cosmetics.This business generated $10,000 of earnings.What is Hong's self-employment tax for 2017?

Accepted Answer

A)  $268 
B)  $290 
C)  $1,412 
D)  $1,530 
A)  $268 
B)  $290 
C)  $1,412 
D)  $1,530

Question 12

Which statement is correct?

Accepted Answer

A)  Tax credits reduce tax liability on a dollar-for-dollar basis. 
B)  Tax deductions reduce tax liability on a dollar-for-dollar basis. 
C)  The benefit of a tax credit depends on the taxpayer's marginal tax rate. 
D)  Tax deductions are less valuable for high-income taxpayers than for low-income taxpayers. 
A)  Tax credits reduce tax liability on a dollar-for-dollar basis. 
B)  Tax deductions reduce tax liability on a dollar-for-dollar basis. 
C)  The benefit of a tax credit depends on the taxpayer's marginal tax rate. 
D)  Tax deductions are less valuable for high-income taxpayers than for low-income taxpayers.

Question 13

A taxpayer acquired an office building to be used in her business this year.For AMT purposes,depreciation must be recalculated using the straight-line method over 40 years.

Accepted Answer

A) True 
 B)False

Question 14

The adoption credit based on qualified adoption expenses is generally allowed in the year the adoption is finalized.

Accepted Answer

A) True 
 B)False

Question 15

Timothy and Alice,who are married with modified AGI of $90,000,are sending their daughter to her first year of college.Their total tuition and related payments during the year amounted to $13,000.In addition,their daughter received a $10,000 scholarship to cover tuition.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit is

Accepted Answer

A)  $2,000. 
B)  $2,250. 
C)  $2,500. 
D)  $3,000. 
A)  $2,000. 
B)  $2,250. 
C)  $2,500. 
D)  $3,000.

Question 16

Annie has taxable income of $100,000,a regular tax liability of $20,982,a positive AMT adjustment due to limitations on itemized deductions of $20,000,and tax preferences of $25,000 in 2016.Annie is single and takes a $4,050 personal exemption for herself only.What is Annie's AMT for 2016?

Accepted Answer

@#IMG-DLM& *$54,300

Question 17

Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2017 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is

Accepted Answer

A)  $37,225. 
B)  $47,275. 
C)  $0. 
D)  $84,500. 
A)  $37,225. 
B)  $47,275. 
C)  $0. 
D)  $84,500.

Question 18

For purposes of the AMT,only the foreign tax credit and refundable personal credits are allowed to reduce the tentative minimum tax.

Accepted Answer

A) True 
 B)False

Question 19

In the fall of 2017,James went back to school to earn a master of accountancy degree.He incurred $7,000 of qualified educational expenses and his modified AGI for the year was $40,000.His Lifetime Learning Credit is

Accepted Answer

A)  $1,000. 
B)  $1,400. 
C)  $1,800. 
D)  $2,500. 
A)  $1,000. 
B)  $1,400. 
C)  $1,800. 
D)  $2,500.

Question 20

The earned income credit is available only to taxpayers with qualifying children.

Accepted Answer

A) True 
 B)False

All tax-exempt bond interest income is classified as an AMT preference.

Drake and Davina are married and file a joint return for 2017 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes.Their regular tax liability is $16,478.What is the amount of their total tax liability?

The general business credit may not exceed the net income tax minus the greater of the tentative minimum tax or

Mr.and Mrs.Lewis have an alternative minimum tax base of $312,000.Their tentative minimum tax will be

To help retain its talented workforce,Zapper Corporation opens a child care facility in the building next to its offices.It spends $200,000 on rent,salaries and supplies.With respect to the $200,000 expenditure,Zapper will be entitled to a tax credit and a tax deduction of

All of the following statements are true regarding the Lifetime Learning Credit except which one?

Ivan has generated the following taxes and credits this year: How much general business credit will he apply to the current year tax liability?

In 2017,Rita is divorced with one child.She has AGI of $20,000 resulting in a federal income tax liability of $255 and an earned income credit of $3,135.She has had $550 of federal income taxes withheld from her pay.Rita will receive a federal income refund of

Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?

Hong earns $127,300 in her job as a physician's assistant.She also has her own business selling cosmetics.This business generated $10,000 of earnings.What is Hong's self-employment tax for 2017?

Which statement is correct?

A taxpayer acquired an office building to be used in her business this year.For AMT purposes,depreciation must be recalculated using the straight-line method over 40 years.

The adoption credit based on qualified adoption expenses is generally allowed in the year the adoption is finalized.

Annie has taxable income of $100,000,a regular tax liability of $20,982,a positive AMT adjustment due to limitations on itemized deductions of $20,000,and tax preferences of $25,000 in 2016.Annie is single and takes a $4,050 personal exemption for herself only.What is Annie's AMT for 2016?

Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2017 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is

For purposes of the AMT,only the foreign tax credit and refundable personal credits are allowed to reduce the tentative minimum tax.

In the fall of 2017,James went back to school to earn a master of accountancy degree.He incurred $7,000 of qualified educational expenses and his modified AGI for the year was $40,000.His Lifetime Learning Credit is

The earned income credit is available only to taxpayers with qualifying children.

An Introduction to Taxation

Determination of Tax

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

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

Exam 14: Special Tax Computation Methods, tax Credits, and Payment of Tax

All tax-exempt bond interest income is classified as an AMT preference.

Drake and Davina are married and file a joint return for 2017 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes.Their regular tax liability is $16,478.What is the amount of their total tax liability?

The general business credit may not exceed the net income tax minus the greater of the tentative minimum tax or

Mr.and Mrs.Lewis have an alternative minimum tax base of $312,000.Their tentative minimum tax will be

To help retain its talented workforce,Zapper Corporation opens a child care facility in the building next to its offices.It spends $200,000 on rent,salaries and supplies.With respect to the $200,000 expenditure,Zapper will be entitled to a tax credit and a tax deduction of

All of the following statements are true regarding the Lifetime Learning Credit except which one?

Ivan has generated the following taxes and credits this year: How much general business credit will he apply to the current year tax liability?

In 2017,Rita is divorced with one child.She has AGI of $20,000 resulting in a federal income tax liability of $255 and an earned income credit of $3,135.She has had $550 of federal income taxes withheld from her pay.Rita will receive a federal income refund of

Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?

Hong earns $127,300 in her job as a physician's assistant.She also has her own business selling cosmetics.This business generated $10,000 of earnings.What is Hong's self-employment tax for 2017?

Which statement is correct?

A taxpayer acquired an office building to be used in her business this year.For AMT purposes,depreciation must be recalculated using the straight-line method over 40 years.

The adoption credit based on qualified adoption expenses is generally allowed in the year the adoption is finalized.

Annie has taxable income of $100,000,a regular tax liability of $20,982,a positive AMT adjustment due to limitations on itemized deductions of $20,000,and tax preferences of $25,000 in 2016.Annie is single and takes a $4,050 personal exemption for herself only.What is Annie's AMT for 2016?

Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2017 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is

For purposes of the AMT,only the foreign tax credit and refundable personal credits are allowed to reduce the tentative minimum tax.

In the fall of 2017,James went back to school to earn a master of accountancy degree.He incurred $7,000 of qualified educational expenses and his modified AGI for the year was $40,000.His Lifetime Learning Credit is

The earned income credit is available only to taxpayers with qualifying children.

An Introduction to Taxation

Determination of Tax

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

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters