Question 1

List two general objectives of the tax code.

Accepted Answer

The tax code promotes social goals, economic goals and raising revenue.

Question 2

Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2016?

Accepted Answer

A) $6,300 
B) $9,300 
C) $10,150 
D) $12,600 
E) None of the above 
A) $6,300 
B) $9,300 
C) $10,150 
D) $12,600 
E) None of the above B

Question 3

George, age 67, and Linda, age 60, are married taxpayers with three dependent children. Their adjusted gross income for the 2016 tax year is $142,000. They have itemized deductions of $24,000. Determine the following for their joint tax return for 2016:
a.The number of exemptions
b.Exemption deduction amount
c.The greater of the amount of their standard deduction or their itemized deductions
d.Taxable income

Accepted Answer

​

Question 4

William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return?

Accepted Answer

A) Head of household 
B) Married, filing separately 
C) Single 
D) Qualifying widow(er) 
E) None of the above 
A) Head of household 
B) Married, filing separately 
C) Single 
D) Qualifying widow(er) 
E) None of the above

Question 5

Mike purchased stock in MDH Corporation 5 years ago for $15,500. This year he sold it for $12,650 and then paid a $250 sales commission to his broker. He had no other capital gains or losses during the year.
a.What is Mike's amount realized?
b.What is Mike's adjusted basis?
c.What is Mike's realized gain or loss?
d.What is Mike's recognized gain or loss?
e.How much of the gain or loss can Mike report in his tax return?

Accepted Answer

a. Amount realized: $12,400 = $12,650 -

Question 6

Partnership income is reported on:

Accepted Answer

A) Form 1040PTR 
B) Form 1120S 
C) Form 1040X 
D) Form 1065 
A) Form 1040PTR 
B) Form 1120S 
C) Form 1040X 
D) Form 1065

Question 7

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Accepted Answer

A) True 
 B)False

Question 8

Partnerships:

Accepted Answer

A) Are not taxable entities. 
B) Are taxed in the same manner as individuals. 
C) File tax returns on Form 1120. 
D) File tax returns on Form 1041. 
A) Are not taxable entities. 
B) Are taxed in the same manner as individuals. 
C) File tax returns on Form 1120. 
D) File tax returns on Form 1041.

Question 9

Theodore, age 74, and Maureen, age 59, are married taxpayers with two dependents. Their adjusted gross income for the 2016 tax year is $43,600, and they have itemized deductions of $7,800. Determine the following for Theodore and Maureen's 2016 income tax return:
a.The number of exemptions
b.The greater of the amount of their standard deduction or their itemized deductions
c.Their taxable income

Accepted Answer

The answer of Theodore, age 74, and Maureen, age 59,...

Question 10

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2016 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2016?
​
Why?

Accepted Answer

Yes. Monica must fil

Question 11

For 2016, personal and dependency exemptions are $4,000 each.

Accepted Answer

A) True 
 B)False

Question 12

State two reasons why a person would want to e-file their return instead of mailing it.

Accepted Answer

A return that is e-filed has a smaller e

Question 13

Albert and Louise, ages 66 and 64, respectively, filed a joint return for 2016. They provided all of the support for their blind 19 year-old son, who had no gross income. They also provided the total support of Louise's father, who is a citizen and life-long resident of Peru. How many exemptions may they claim on their 2016 tax return?

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 5 
E) None of the above 
A) 2 
B) 3 
C) 4 
D) 5 
E) None of the above

Question 14

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:

Accepted Answer

A) Salary income. 
B) Joint return status. 
C) Withholding on wages. 
D) Self-employment income. 
A) Salary income. 
B) Joint return status. 
C) Withholding on wages. 
D) Self-employment income.

Question 15

Karen is single and earns wages of $250,000 in 2016. She has no other income. How much is her ACA Medicare surtax on earned income?

Accepted Answer

$450 = 0.9

Question 16

Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year. She has no other capital gains or losses for the year. Her taxable income without this transaction is $60,000. What is her current year taxable income considering this capital loss?

Accepted Answer

A) $44,000 
B) $54,000 
C) $57,000 
D) $70,000 
E) Some other amount 
A) $44,000 
B) $54,000 
C) $57,000 
D) $70,000 
E) Some other amount

Question 17

Mark each of the following as a taxable entity, a reporting entity, or both:
a.Individuals
b.Corporations
c.Partnerships

Accepted Answer

a. Taxable and repor

Question 18

During 2016, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: ​
  Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?

Accepted Answer

A) Dudley 
B) Dudley or Carlton 
C) Carlton or Isidore 
D) Dudley, Carlton, or Isidore 
E) None of the above 
A) Dudley 
B) Dudley or Carlton 
C) Carlton or Isidore 
D) Dudley, Carlton, or Isidore 
E) None of the above

Question 19

What is the difference between the standard deduction and itemized deductions?

Accepted Answer

The standard deduction is a flat amount,

Question 20

Which of the following is not a capital asset?

Accepted Answer

A) Inventory 
B) Stocks 
C) A personal automobile 
D) Gold 
E) Land 
A) Inventory 
B) Stocks 
C) A personal automobile 
D) Gold 
E) Land

List two general objectives of the tax code.

Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2016?

William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return?

Partnership income is reported on:

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Partnerships:

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2016 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2016? Why?

For 2016, personal and dependency exemptions are $4,000 each.

State two reasons why a person would want to e-file their return instead of mailing it.

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:

Karen is single and earns wages of $250,000 in 2016. She has no other income. How much is her ACA Medicare surtax on earned income?

Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year. She has no other capital gains or losses for the year. Her taxable income without this transaction is $60,000. What is her current year taxable income considering this capital loss?

Mark each of the following as a taxable entity, a reporting entity, or both: a.Individuals b.Corporations c.Partnerships

During 2016, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?

What is the difference between the standard deduction and itemized deductions?

Which of the following is not a capital asset?

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 1: The Individual Income Tax Return

List two general objectives of the tax code.

Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2016?

William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return?

Partnership income is reported on:

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Partnerships:

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2016 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2016? ​ Why?

For 2016, personal and dependency exemptions are $4,000 each.

State two reasons why a person would want to e-file their return instead of mailing it.

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:

Karen is single and earns wages of $250,000 in 2016. She has no other income. How much is her ACA Medicare surtax on earned income?

Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year. She has no other capital gains or losses for the year. Her taxable income without this transaction is $60,000. What is her current year taxable income considering this capital loss?

Mark each of the following as a taxable entity, a reporting entity, or both: a.Individuals b.Corporations c.Partnerships

During 2016, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: ​ Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?

What is the difference between the standard deduction and itemized deductions?

Which of the following is not a capital asset?

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2016 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2016? Why?

During 2016, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?