Question 1

Gain on the sale of collectibles held for more than 12 months could be subject to tax at a rate lower than 28%.

Accepted Answer

A) True 
 B)False

Question 2

Tony, age 15, is claimed as a dependent by his grandmother.During 2012, Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $700.Tony's taxable income is:

Accepted Answer

A) $0. 
B) $1,700 - $700 - $950 = $50. 
C) $1,700 - $1,000 = $700. 
D) $1,700 - $950 = $750. 
E) None of the above. 
A) $0. 
B) $1,700 - $700 - $950 = $50. 
C) $1,700 - $1,000 = $700. 
D) $1,700 - $950 = $750. 
E) None of the above.

Question 3

Regarding head of household filing status, comment on the following:

Accepted Answer

The answer of Regarding head of household filing status, comment...

Question 4

Lena is 66 years of age, single, and blind and is not claimed as a dependent.How much gross income must she have before she is required to file a Federal income tax return for 2012?

Accepted Answer

$11,200.$5,950 (basic standard

Question 5

In January 2012, Jake's wife dies and he does not remarry.For tax year 2012, Jake may not be able to use the filing status available to married persons filing joint returns.

Accepted Answer

A) True 
 B)False

Question 6

Under the income tax formula, a taxpayer must choose between deductions from AGI and the standard deduction.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) $32,000. 
B) $38,000. 
C) $44,000. 
D) $56,000. 
E) $64,000. 
A) $32,000. 
B) $38,000. 
C) $44,000. 
D) $56,000. 
E) $64,000.

Question 8

In resolving qualified child status for dependency exemption purposes, why are tiebreaker rules necessary? Can these rules be waived?

Accepted Answer

A person being claimed as a de

Question 9

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI, Donna still can claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 10

After paying down the mortgage on their personal residence, the Hills have found that their itemized deductions for each year are always slightly less than the standard deduction option.

Accepted Answer

The answer of After paying down the mortgage on their...

Question 11

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

Accepted Answer

A) True 
 B)False

Question 12

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI. Since he plans to choose the standard deduction option for the year, does the distinction matter? Explain.

Accepted Answer

It makes a great deal of difference if t

Question 13

Howard, age 82, dies on January 2, 2012.On Howard's final income tax return, the full amount of the basic and additional standard deductions will be allowed even though Howard lived for only 2 days during the year.

Accepted Answer

A) True 
 B)False

Question 14

Taylor had the following transactions for 2012:
   What is Taylor's AGI for 2012?

Accepted Answer

$76,000.$85,000 (salary) + $3,000 (raffl

Question 15

When can a taxpayer not use Form 1040EZ? Form 1040A?

Accepted Answer

Form 1040EZ cannot be used when the taxp

Question 16

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

Accepted Answer

A) $185,000. 
B) $187,000. 
C) $285,000. 
D) $287,000. 
E) $385,000. 
A) $185,000. 
B) $187,000. 
C) $285,000. 
D) $287,000. 
E) $385,000.

Question 17

For dependents who have income, special filing requirements apply.

Accepted Answer

A) True 
 B)False

Question 18

Under what circumstances, if any, may an ex-spouse be claimed as a dependent?

Accepted Answer

As an ex-spouse does not meet the relati

Question 19

Benjamin, age 16, is claimed as a dependent by his parents.During 2012, he earned $700 at a car wash.Benjamin's standard deduction is $1,250 ($950 + $300).

Accepted Answer

A) True 
 B)False

Question 20

In 2012, Warren sold his personal use automobile for a loss of $9,000.He also sold a personal coin collection for a gain of $10,000.As a result of these sales, $1,000 is subject to income tax.

Accepted Answer

A) True 
 B)False

Exam 3: Computing the Tax

Gain on the sale of collectibles held for more than 12 months could be subject to tax at a rate lower than 28%.

Tony, age 15, is claimed as a dependent by his grandmother.During 2012, Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $700.Tony's taxable income is:

Regarding head of household filing status, comment on the following:

Lena is 66 years of age, single, and blind and is not claimed as a dependent.How much gross income must she have before she is required to file a Federal income tax return for 2012?

In January 2012, Jake's wife dies and he does not remarry.For tax year 2012, Jake may not be able to use the filing status available to married persons filing joint returns.

Under the income tax formula, a taxpayer must choose between deductions from AGI and the standard deduction.

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

In resolving qualified child status for dependency exemption purposes, why are tiebreaker rules necessary? Can these rules be waived?

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI, Donna still can claim the standard deduction.

After paying down the mortgage on their personal residence, the Hills have found that their itemized deductions for each year are always slightly less than the standard deduction option.

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI. Since he plans to choose the standard deduction option for the year, does the distinction matter? Explain.

Howard, age 82, dies on January 2, 2012.On Howard's final income tax return, the full amount of the basic and additional standard deductions will be allowed even though Howard lived for only 2 days during the year.

Taylor had the following transactions for 2012: What is Taylor's AGI for 2012?

When can a taxpayer not use Form 1040EZ? Form 1040A?

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

For dependents who have income, special filing requirements apply.

Under what circumstances, if any, may an ex-spouse be claimed as a dependent?

Benjamin, age 16, is claimed as a dependent by his parents.During 2012, he earned $700 at a car wash.Benjamin's standard deduction is $1,250 ($950 + $300).

In 2012, Warren sold his personal use automobile for a loss of $9,000.He also sold a personal coin collection for a gain of $10,000.As a result of these sales, $1,000 is subject to income tax.

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