Question 1

A taxpayer who itemizes must use Form 1040, and cannot use Form 1040EZ or Form 1040A.

Accepted Answer

A) True 
 B)False

Question 2

In applying the gross income test in the case of dependents that are married, could the application of community property laws have any effect? Explain.

Accepted Answer

Most often, the application of community

Question 3

In 2012, Pierre had the following transactions:   Pierre's AGI is:

Accepted Answer

A) $83,000. 
B) $94,000. 
C) $98,000. 
D) $103,000. 
E) $114,000. 
A) $83,000. 
B) $94,000. 
C) $98,000. 
D) $103,000. 
E) $114,000.

Question 4

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

Accepted Answer

A) True 
 B)False

Question 5

Married taxpayers who file separately cannot later change to a joint return.

Accepted Answer

A) True 
 B)False

Question 6

Since an abandoned spouse is treated as single and has one or more dependent children, he or she qualifies for the standard deduction available to head of household.

Accepted Answer

A) True 
 B)False

Question 7

Katrina, age 16, is claimed as a dependent by her parents.During 2012, she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,900 ($5,600 earned income + $300).

Accepted Answer

A) True 
 B)False

Question 8

Ashley earns a salary of $55,000, has capital gains of $3,000, and interest income of $5,000 in 2012.Her husband died in 2011.Ashley has a dependent son, Tyrone, who is age 8.Her itemized deductions are $9,000.

Accepted Answer

The answer of Ashley earns a salary of $55,000, has...

Question 9

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 10

Arnold is married to Sybil, who abandoned him in 2011.He has not seen or communicated with her since April of that year.He maintains a household in which their son, Evans, lives.Evans is age 25 and earns over $6,000 each year.For tax year 2012, Arnold's filing status is:

Accepted Answer

A) Married, filing jointly. 
B) Head of household. 
C) Married, filing separately. 
D) Surviving spouse. 
E) Single. 
A) Married, filing jointly. 
B) Head of household. 
C) Married, filing separately. 
D) Surviving spouse. 
E) Single.

Question 11

In determining whether the support test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

Accepted Answer

A) True 
 B)False

Question 12

Currently, the top income tax rate in effect is not the highest it has ever been.

Accepted Answer

A) True 
 B)False

Question 13

Regarding the Tax Tables applicable to the Federal income tax, which of the following statements is correct?

Accepted Answer

A) For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules. 
B) The Tax Tables will yield the same amount of tax as the Tax Rate Schedules. 
C) Taxpayers can elect as to whether the use the Tax Tables or the Tax Rate Schedules. 
D) The Tax Tables can be used by an estate but not by a trust. 
E) No correct answer given. 
A) For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules. 
B) The Tax Tables will yield the same amount of tax as the Tax Rate Schedules. 
C) Taxpayers can elect as to whether the use the Tax Tables or the Tax Rate Schedules. 
D) The Tax Tables can be used by an estate but not by a trust. 
E) No correct answer given.

Question 14

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea.Kim can claim his parents as dependents.

Accepted Answer

A) True 
 B)False

Question 15

Perry is in the 33% tax bracket.During 2012, he had the following capital asset transactions:   Perry's tax consequences from these gains are as follows:

Accepted Answer

A) (15% ´ $30,000) + (33% ´ $4,000). 
B) (15% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
C) (0% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
D) (15% ´ $40,000) + (33% ´ $4,000). 
E) None of the above. 
A) (15% ´ $30,000) + (33% ´ $4,000). 
B) (15% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
C) (0% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
D) (15% ´ $40,000) + (33% ´ $4,000). 
E) None of the above.

Question 16

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2012 is $15,350 ($11,900 + $1,150 + $1,150 + $1,150).

Accepted Answer

A) True 
 B)False

Question 17

Even if the individual does not spend funds that have been received from another source (e.g., interest on municipal bonds), the unexpended amounts are considered for purposes of the support test.

Accepted Answer

A) True 
 B)False

Question 18

In terms of income tax consequences, abandoned spouses are treated the same way as married persons filing separate returns.

Accepted Answer

A) True 
 B)False

Question 19

During 2012, Esther had the following transactions:   Esther's AGI is:

Accepted Answer

A) $62,000. 
B) $64,000. 
C) $67,000. 
D) $102,000. 
E) $104,000. 
A) $62,000. 
B) $64,000. 
C) $67,000. 
D) $102,000. 
E) $104,000.

Question 20

Kyle, whose wife died in December 2009, filed a joint tax return for 2009.He did not remarry, but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status as to 2012?

Accepted Answer

A) Head of household. 
B) Surviving spouse. 
C) Single. 
D) Married filing separately. 
E) None of the above. 
A) Head of household. 
B) Surviving spouse. 
C) Single. 
D) Married filing separately. 
E) None of the above.

Exam 3: Computing the Tax

A taxpayer who itemizes must use Form 1040, and cannot use Form 1040EZ or Form 1040A.

In applying the gross income test in the case of dependents that are married, could the application of community property laws have any effect? Explain.

In 2012, Pierre had the following transactions: Pierre's AGI is:

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

Married taxpayers who file separately cannot later change to a joint return.

Since an abandoned spouse is treated as single and has one or more dependent children, he or she qualifies for the standard deduction available to head of household.

Katrina, age 16, is claimed as a dependent by her parents.During 2012, she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,900 ($5,600 earned income + $300).

Ashley earns a salary of $55,000, has capital gains of $3,000, and interest income of $5,000 in 2012.Her husband died in 2011.Ashley has a dependent son, Tyrone, who is age 8.Her itemized deductions are $9,000.

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

Arnold is married to Sybil, who abandoned him in 2011.He has not seen or communicated with her since April of that year.He maintains a household in which their son, Evans, lives.Evans is age 25 and earns over $6,000 each year.For tax year 2012, Arnold's filing status is:

In determining whether the support test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

Currently, the top income tax rate in effect is not the highest it has ever been.

Regarding the Tax Tables applicable to the Federal income tax, which of the following statements is correct?

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea.Kim can claim his parents as dependents.

Perry is in the 33% tax bracket.During 2012, he had the following capital asset transactions: Perry's tax consequences from these gains are as follows:

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2012 is $15,350 ($11,900 + $1,150 + $1,150 + $1,150).

Even if the individual does not spend funds that have been received from another source (e.g., interest on municipal bonds), the unexpended amounts are considered for purposes of the support test.

In terms of income tax consequences, abandoned spouses are treated the same way as married persons filing separate returns.

During 2012, Esther had the following transactions: Esther's AGI is:

Kyle, whose wife died in December 2009, filed a joint tax return for 2009.He did not remarry, but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status as to 2012?

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Gross Income: Concepts and Inclusions

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

Tax Credits and Payments

A: Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 1

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 2

Property Transactions: Capital Gains and Losses, 1231, Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S: Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Income Taxation of Trusts and Estates

Filters