Question 1

Which of the following is excluded from gross income?

Accepted Answer

A) Prizes 
B) Scholarships for tuition 
C) Hobby income 
D) Rental income 
E) All of the above are included in gross income 
A) Prizes 
B) Scholarships for tuition 
C) Hobby income 
D) Rental income 
E) All of the above are included in gross income

Question 2

Jim,a single individual,was unemployed for a few months during the current year.During the year,he received $3,600 in unemployment compensation payments.How much of his unemployment compensation payments must be included in gross income?

Accepted Answer

$3,600.Unemployment

Question 3

If a divorce agreement executed in the current year specifies that a portion of the amount of an alimony payment is contingent upon the status of a child,that portion is considered to be a child support payment.

Accepted Answer

A) True 
 B)False

Question 4

Bob is a machinist in a remote Alaskan crab-freezing plant.The plant is accessible only by boat or airplane and has no available lodging for rent.Bob's employer provides him with lodging at the plant and pays for all of his electricity,gas,and other utilities,valued at $700 per month.Is the value of the lodging taxable to Bob? Explain.

Accepted Answer

No.The lodging costs paid by t

Question 5

Tracy transfers to Glen a life insurance policy with a face value of $40,000 and a cash value of $8,000 in payment of a personal debt.Glen continues to make premium payments on the policy until Tracy's death.At that time,Glen had paid $3,500 in premiums.
a.How much income must Glen report when he receives the $40,000 in proceeds?
b.Would your answer be different if Tracy were a shareholder and CEO of a corporation to which the policy was transferred? Why?

Accepted Answer

a.$28,500 = $40,000 - $8,000 -

Question 6

Which of the following may be excluded from income?

Accepted Answer

A) Payment for the loss of an arm 
B) Premiums for health insurance paid by the employer 
C) Reimbursement from the insurance company for a physical examination 
D) All of the above are excluded from gross income 
E) None of the above are excluded from gross income 
A) Payment for the loss of an arm 
B) Premiums for health insurance paid by the employer 
C) Reimbursement from the insurance company for a physical examination 
D) All of the above are excluded from gross income 
E) None of the above are excluded from gross income

Question 7

Tim receives a $25,000 gift from his parents for a down payment on a house.They know he can not buy a house without their help.They write "gift" in the memo line of the check.How much of the gift is taxable to Tim?

Accepted Answer

None of the gift is taxable.Gi

Question 8

All of the following amounts must be included in gross income,except:

Accepted Answer

A) Gambling winnings 
B) Partnership income 
C) Accident insurance proceeds 
D) Dividends 
E) Jury duty fees 
A) Gambling winnings 
B) Partnership income 
C) Accident insurance proceeds 
D) Dividends 
E) Jury duty fees

Question 9

Andy landscaped his friend's house in return for a couch set and an HD television worth $8,000.How much income must Andy report on his tax return for his services?

Accepted Answer

The noncash payment of $8,000 for servic

Question 10

Ordinarily life insurance proceeds are excluded from gross income.Why would they be taxable if the policy had been transferred for valuable consideration,prior to the death of the insured?

Accepted Answer

If a policy is transferred for valuable

Question 11

A taxpayer in the 28 percent tax bracket invests in a City of San Diego bond paying 8 percent interest.What taxable interest rate would provide the same after-tax return?

Accepted Answer

11.11 perc

Question 12

In which of the following cases may the employee exclude the meals and/or lodging:

Accepted Answer

A) A taxpayer lives rent-free at the property she manages even though the owner does not require the manager to live on site. 
B) A headmaster at a boarding school is required to be on campus all night. 
C) A president of a major film studio receives a cash allowance to live in Beverly Hills. 
D) An employee has an option of dining in an employer-sponsored cafeteria or dining out of the office. 
A) A taxpayer lives rent-free at the property she manages even though the owner does not require the manager to live on site. 
B) A headmaster at a boarding school is required to be on campus all night. 
C) A president of a major film studio receives a cash allowance to live in Beverly Hills. 
D) An employee has an option of dining in an employer-sponsored cafeteria or dining out of the office.

Question 13

In 2017,what rate would a taxpayer pay on qualified dividend income:
a.If in the 33 percent bracket?
b.If in the 10 percent bracket?

Accepted Answer

a.15 perce

Question 14

Mary received the following items during the current year: What is the total amount of the above items that must be included in Mary's current year gross income?

Accepted Answer

A) $0 
B) $100 
C) $135 
D) $600 
E) $635 
A) $0 
B) $100 
C) $135 
D) $600 
E) $635

Question 15

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year.
-Scholarships for tuition and books

Accepted Answer

A) Included 
B) Excluded 
A) Included 
B) Excluded

Question 16

Nicole is a student at USB Law School;she receives a $52,000 scholarship for 2017.Of the $52,000,$40,000 is used for tuition,$5,000 is used for books,and $7,000 is used for room and board.How much of the scholarship is excluded from taxable income for Nicole in 2017?

Accepted Answer

A) $5,000 
B) $7,000 
C) $45,000 
D) $47,000 
E) $52,000 
A) $5,000 
B) $7,000 
C) $45,000 
D) $47,000 
E) $52,000

Question 17

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year.
-Wages

Accepted Answer

A) Included 
B) Excluded 
A) Included 
B) Excluded

Question 18

Which of the following is classified as nontaxable income?

Accepted Answer

A) Unemployment compensation 
B) Dividend income 
C) Income from real estate rental property 
D) Welfare payments 
E) None of the above 
A) Unemployment compensation 
B) Dividend income 
C) Income from real estate rental property 
D) Welfare payments 
E) None of the above

Question 19

Which of the following is not taxable income?

Accepted Answer

A) Dividends 
B) Income from relief of debt 
C) Interest 
D) Royalties 
E) Welfare benefits 
A) Dividends 
B) Income from relief of debt 
C) Interest 
D) Royalties 
E) Welfare benefits

Question 20

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year.
-Lottery winnings

Accepted Answer

A) Included 
B) Excluded 
A) Included 
B) Excluded

Which of the following is excluded from gross income?

Jim,a single individual,was unemployed for a few months during the current year.During the year,he received $3,600 in unemployment compensation payments.How much of his unemployment compensation payments must be included in gross income?

If a divorce agreement executed in the current year specifies that a portion of the amount of an alimony payment is contingent upon the status of a child,that portion is considered to be a child support payment.

Which of the following may be excluded from income?

Tim receives a $25,000 gift from his parents for a down payment on a house.They know he can not buy a house without their help.They write "gift" in the memo line of the check.How much of the gift is taxable to Tim?

All of the following amounts must be included in gross income,except:

Andy landscaped his friend's house in return for a couch set and an HD television worth $8,000.How much income must Andy report on his tax return for his services?

Ordinarily life insurance proceeds are excluded from gross income.Why would they be taxable if the policy had been transferred for valuable consideration,prior to the death of the insured?

A taxpayer in the 28 percent tax bracket invests in a City of San Diego bond paying 8 percent interest.What taxable interest rate would provide the same after-tax return?

In which of the following cases may the employee exclude the meals and/or lodging:

In 2017,what rate would a taxpayer pay on qualified dividend income: a.If in the 33 percent bracket? b.If in the 10 percent bracket?

Mary received the following items during the current year: What is the total amount of the above items that must be included in Mary's current year gross income?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year. -Scholarships for tuition and books

Nicole is a student at USB Law School;she receives a $52,000 scholarship for 2017.Of the $52,000,$40,000 is used for tuition,$5,000 is used for books,and $7,000 is used for room and board.How much of the scholarship is excluded from taxable income for Nicole in 2017?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year. -Wages

Which of the following is classified as nontaxable income?

Which of the following is not taxable income?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year. -Lottery winnings

The Individual Income Tax Return

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 2: Gross Income and Exclusions

Which of the following is excluded from gross income?

Jim,a single individual,was unemployed for a few months during the current year.During the year,he received $3,600 in unemployment compensation payments.How much of his unemployment compensation payments must be included in gross income?

If a divorce agreement executed in the current year specifies that a portion of the amount of an alimony payment is contingent upon the status of a child,that portion is considered to be a child support payment.

Which of the following may be excluded from income?

Tim receives a $25,000 gift from his parents for a down payment on a house.They know he can not buy a house without their help.They write "gift" in the memo line of the check.How much of the gift is taxable to Tim?

All of the following amounts must be included in gross income,except:

Andy landscaped his friend's house in return for a couch set and an HD television worth $8,000.How much income must Andy report on his tax return for his services?

Ordinarily life insurance proceeds are excluded from gross income.Why would they be taxable if the policy had been transferred for valuable consideration,prior to the death of the insured?

A taxpayer in the 28 percent tax bracket invests in a City of San Diego bond paying 8 percent interest.What taxable interest rate would provide the same after-tax return?

In which of the following cases may the employee exclude the meals and/or lodging:

In 2017,what rate would a taxpayer pay on qualified dividend income: a.If in the 33 percent bracket? b.If in the 10 percent bracket?

Mary received the following items during the current year: What is the total amount of the above items that must be included in Mary's current year gross income?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year. -Scholarships for tuition and books

Nicole is a student at USB Law School;she receives a $52,000 scholarship for 2017.Of the $52,000,$40,000 is used for tuition,$5,000 is used for books,and $7,000 is used for room and board.How much of the scholarship is excluded from taxable income for Nicole in 2017?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year. -Wages

Which of the following is classified as nontaxable income?

Which of the following is not taxable income?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2017 tax year. -Lottery winnings

The Individual Income Tax Return

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