Question 1

Partnership capital gains and losses are allocated separately to each of the partners.

Accepted Answer

A) True 
 B)False

Question 2

Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2016 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized gain on the sale?

Accepted Answer

A) $18,000 
B) $53,000 
C) $63,000 
D) $77,000 
E) None of the above 
A) $18,000 
B) $53,000 
C) $63,000 
D) $77,000 
E) None of the above

Question 3

Kenzie is a research scientist in Tallahassee, Florida. Her husband Gary stays home to take care of their two young children. Kenzie's total wages for 2016 were $60,500 from which $5,900 of federal income tax was withheld.
​
Calculate the income tax due or income tax refund on Kenzie and Gary's 2016 individual income tax return. Use the tax formula for individuals and show your work.

Accepted Answer

The answer of Kenzie is a research scientist in Tallahassee,...

Question 4

Internet users can sign on to http://www.irs.gov/ and:

Accepted Answer

A) Download tax forms and publications. 
B) Find links to other useful IRS pages. 
C) Use a search function to find forms and publications. 
D) All of the above. 
A) Download tax forms and publications. 
B) Find links to other useful IRS pages. 
C) Use a search function to find forms and publications. 
D) All of the above.

Question 5

Betty, age 39 and Steve, age 50, are married with two dependent children. They file a joint return for 2016. Their income from salaries totals $155,000; they receive $1,000 in taxable interest and $2,000 in royalties. Their deductions for adjusted gross income amount to $3,100; they have itemized deductions totaling $41,000. Calculate the following amounts:

Accepted Answer

The answer of Betty, age 39 and Steve, age 50,...

Question 6

Irma, widowed in 2015, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2016?

Accepted Answer

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

Question 7

Eugene and Velma are married. For 2016, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugene's itemized deductions are $11,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Eugene's taxable income?

Accepted Answer

A) $9,750 
B) $13,800 
C) $14,700 
D) $21,000 
E) None of the above 
A) $9,750 
B) $13,800 
C) $14,700 
D) $21,000 
E) None of the above

Question 8

John, 45 years old and unmarried, contributed $1,000 monthly in 2016 to the support of his parents' household. The parents lived alone and their income for 2016 consisted of $500 from dividends and interest. What is John's filing status and how many exemptions should he claim on his 2016 tax return?

Accepted Answer

A) Single and 1 exemption 
B) Head of household and 1 exemption 
C) Single and 3 exemptions 
D) Head of household and 3 exemptions 
E) None of the above 
A) Single and 1 exemption 
B) Head of household and 1 exemption 
C) Single and 3 exemptions 
D) Head of household and 3 exemptions 
E) None of the above

Question 9

Most states are community property states.

Accepted Answer

A) True 
 B)False

Question 10

Melissa is a 35-year-old single taxpayer with adjusted gross income of $49,600. She uses the standard deduction and has no dependents.
a.Calculate Melissa's 2016 taxable income.Please show your work.
b.When you calculate Melissa's tax liability, are you required to use the tax tables or the tax rate schedules, or does it matter?
c.What is Melissa's tax liability?

Accepted Answer

a. $39,250 = $49,600 - $6,300

Question 11

Taxpayers who are blind get the benefit of:

Accepted Answer

A) An extra exemption. 
B) An additional amount added to their standard deduction. 
C) Two standard deductions. 
D) None of the above. 
A) An extra exemption. 
B) An additional amount added to their standard deduction. 
C) Two standard deductions. 
D) None of the above.

Question 12

Norman and Linda are married taxpayers with taxable income of $126,000 in 2016.
a.When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter?
b.What is their tax liability?

Accepted Answer

a. Taxpayers with incomes of $

Question 13

Mark a "Yes" to each of the following that can be found on the IRS website. If not, mark with a "No."
a.A list of IRS forms.
b.A search function.
c.Advice on how to avoid paying taxes.
d.Ways to contact the IRS.

Accepted Answer

a. Yes
b.

Question 14

The two types of exemptions are the personal exemption and the dependency exemption.

Accepted Answer

A) True 
 B)False

Question 15

During 2016, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2016, and how many exemptions should he claim on his tax return?

Accepted Answer

A) Head of household and 2 exemptions 
B) Single and 2 exemptions 
C) Head of household and 1 exemption 
D) Single and 1 exemption 
E) None of the above 
A) Head of household and 2 exemptions 
B) Single and 2 exemptions 
C) Head of household and 1 exemption 
D) Single and 1 exemption 
E) None of the above

Question 16

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Accepted Answer

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

Question 17

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Accepted Answer

A) The relative must receive less than $4,050 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above. 
A) The relative must receive less than $4,050 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above.

Question 18

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

Accepted Answer

A) The deduction for job hunting expenses. 
B) The charitable deduction. 
C) The moving expense deduction for adjusted gross income. 
D) The deduction for soil and water conservation costs available to farmers. 
E) None of the above. 
A) The deduction for job hunting expenses. 
B) The charitable deduction. 
C) The moving expense deduction for adjusted gross income. 
D) The deduction for soil and water conservation costs available to farmers. 
E) None of the above.

Question 19

All taxpayers may use the tax rate schedule to determine their tax liability.

Accepted Answer

A) True 
 B)False

Question 20

Roger, age 39, and Lucy, age 37, are married taxpayers who file a joint income tax return for 2016. They have gross income of $26,100. Their deductions for adjusted gross income are $550 and they have itemized deductions of $5,400. If Roger and Lucy claim two personal exemptions and no dependency exemptions for 2016, calculate the following amounts:
a.Their adjusted gross income
b.The greater of the amount of their standard deduction or their itemized deductions
c.Their taxable income

Accepted Answer

The answer of Roger, age 39, and Lucy, age 37,...

Partnership capital gains and losses are allocated separately to each of the partners.

Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2016 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized gain on the sale?

Internet users can sign on to http://www.irs.gov/ and:

Irma, widowed in 2015, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2016?

John, 45 years old and unmarried, contributed $1,000 monthly in 2016 to the support of his parents' household. The parents lived alone and their income for 2016 consisted of $500 from dividends and interest. What is John's filing status and how many exemptions should he claim on his 2016 tax return?

Most states are community property states.

Taxpayers who are blind get the benefit of:

Norman and Linda are married taxpayers with taxable income of $126,000 in 2016. a.When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter? b.What is their tax liability?

Mark a "Yes" to each of the following that can be found on the IRS website. If not, mark with a "No." a.A list of IRS forms. b.A search function. c.Advice on how to avoid paying taxes. d.Ways to contact the IRS.

The two types of exemptions are the personal exemption and the dependency exemption.

During 2016, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2016, and how many exemptions should he claim on his tax return?

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

All taxpayers may use the tax rate schedule to determine their tax liability.

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

Partnership capital gains and losses are allocated separately to each of the partners.

Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2016 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized gain on the sale?

Internet users can sign on to http://www.irs.gov/ and:

Irma, widowed in 2015, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2016?

Most states are community property states.

Taxpayers who are blind get the benefit of:

Norman and Linda are married taxpayers with taxable income of $126,000 in 2016. a.When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter? b.What is their tax liability?

Mark a "Yes" to each of the following that can be found on the IRS website. If not, mark with a "No." a.A list of IRS forms. b.A search function. c.Advice on how to avoid paying taxes. d.Ways to contact the IRS.

The two types of exemptions are the personal exemption and the dependency exemption.

During 2016, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2016, and how many exemptions should he claim on his tax return?

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

All taxpayers may use the tax rate schedule to determine their tax liability.

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