Question 1

The tax concept and economic concept of income are in agreement on which of the following:

Accepted Answer

A) The fair rental value of an owner-occupied home should be included in income. 
B) The increase in value of assets held for the entire year should be included in income for the year. 
C) Rent income for 2018 collected in 2017 is income for 2017. 
D) All of these. 
A) The fair rental value of an owner-occupied home should be included in income. 
B) The increase in value of assets held for the entire year should be included in income for the year. 
C) Rent income for 2018 collected in 2017 is income for 2017. 
D) All of these.

Question 2

The annual increase in the cash surrender value of a life insurance policy:

Accepted Answer

A) Is taxed according to the original issue discount rules. 
B) Is not included in gross income because the policy must be surrendered to receive the cash surrender value. 
C) Reduces the deduction for life insurance expense. 
D) Is exempt because it is life insurance proceeds. 
E) None of these. 
A) Is taxed according to the original issue discount rules. 
B) Is not included in gross income because the policy must be surrendered to receive the cash surrender value. 
C) Reduces the deduction for life insurance expense. 
D) Is exempt because it is life insurance proceeds. 
E) None of these.

Question 3

On January 1, 2017, Faye gave Todd, her son, a 36-month certificate of deposit she purchased December 31, 2015, for $8,638. Faye gave Todd 1,000 shares of ABC, Inc., on December 2, 2017. The certificate had a maturity value of $10,000 and the yield to maturity was 5%. On November 30, 2017, ABC, Inc., had declared a dividend of $1.00 payable to stockholders of record on December 5th. How much interest and dividends should Todd include in his gross income for 2017?

Accepted Answer

Todd must report $454 of interest income

Question 4

If the employer provides all employees with group term life insurance equal to twice the employee's annual salary, an employee with a salary of $50,000 has no gross income from the life insurance protection provided by the employer.

Accepted Answer

A) True 
 B)False

The tax concept and economic concept of income are in agreement on which of the following:

The annual increase in the cash surrender value of a life insurance policy:

If the employer provides all employees with group term life insurance equal to twice the employee's annual salary, an employee with a salary of $50,000 has no gross income from the life insurance protection provided by the employer.

An Introduction to Taxation and Understanding Federal Tax Law

Working With the Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

Exam 4: Gross Income: Concepts and Inclusions

The tax concept and economic concept of income are in agreement on which of the following:

The annual increase in the cash surrender value of a life insurance policy:

If the employer provides all employees with group term life insurance equal to twice the employee's annual salary, an employee with a salary of $50,000 has no gross income from the life insurance protection provided by the employer.

An Introduction to Taxation and Understanding Federal Tax Law

Working With the Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters