Question 1

What is the formula for computing taxable income,as summarized in the text?

Accepted Answer

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Question 2

Oscar and Mary have no dependents and file a joint income tax return for 2017.They have adjusted gross income of $140,000 and itemized deductions of $30,000.What is the amount of taxable income that Oscar and Mary must report on their 2017 income tax return?

Accepted Answer

A) $97,400 
B) $101,900 
C) $102,000 
D) $110,000 
E) $136,000 
A) $97,400 
B) $101,900 
C) $102,000 
D) $110,000 
E) $136,000 B

Question 3

List each alternative filing status available to unmarried individual taxpayers.

Accepted Answer

Single.
Head of household.
Qualifying widow(er).

Question 4

Mary is age 33 and a single taxpayer with adjusted gross income for 2017 of $29,400.Mary maintains a home for three dependent children and has itemized deductions of $3,000.Calculate the following amounts for Mary's 2017 income tax return:
a.The number of exemptions claimed
b.Mary's standard or itemized deduction amount
c.Mary's taxable income

Accepted Answer

The answer of Mary is age 33 and a single...

Question 5

Fran bought stock in the FCM Corporation 4 years ago at a price of $18,000.She sold it this year for $22,225 and paid her broker $225 from the proceeds of the sale.
a.What is Fran's amount realized?
b.What is Fran's adjusted basis?
c.What is Fran's realized gain or loss?
d.What is Fran's recognized gain or loss?
e.How much of the gain or loss should be included in her tax return?

Accepted Answer

a.Amount realized: $22,000 = $22,225 - $

Question 6

During 2017,Howard maintained his home in which he and his 16 year-old son resided.The son qualifies as his dependent.Howard's wife died in 2016.What is his filing status for 2017?

Accepted Answer

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

Question 7

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 2017 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 8

Mr.and Mrs.Vonce,both age 62,file a joint return for 2017.They provided all the support for their daughter who is 19 years old,legally blind,and who earns no income.Their son,age 21 and a full-time student at a university,had $4,200 of income and provided 70 percent of his own support during 2017.How many exemptions may Mr.and Mrs.Vonce claim on their 2017 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 9

Rod,age 50,and Ann,age 49,are married taxpayers who file a joint return for 2017.They have gross income of $150,700.Their deductions for adjusted gross income are $5,100 and they have itemized deductions of $12,000,consisting of $7,000 in state income taxes and $5,000 in mortgage interest expense.If they claim two personal exemptions and no dependency exemptions for 2017,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

a.$145,600 = $150,70

Question 10

Electronically filed tax returns:

Accepted Answer

A) May not be transmitted from a taxpayer's home computer. 
B) Constitute more than 90 percent of the returns filed with the IRS. 
C) Have error rates similar to paper returns. 
D) Offer faster refunds than paper returns. 
A) May not be transmitted from a taxpayer's home computer. 
B) Constitute more than 90 percent of the returns filed with the IRS. 
C) Have error rates similar to paper returns. 
D) Offer faster refunds than paper returns.

Question 11

Barry is age 45 and a single taxpayer.In 2017,he has gross income of $17,000 and itemized deductions of $6,500.If Barry claims one exemption on his 2017 income tax return,calculate the following amounts:
a.His personal exemption amount
b.Barry's taxable income

Accepted Answer

The answer of Barry is age 45 and a single...

Question 12

Calculate the amount of the standard deduction the taxpayers should claim on their 2017 income tax returns.

Accepted Answer

a.$12,700
b.$6,350
c.$12,700
d

Question 13

Wesley owns and operates the Cheshire Chicken Ranch as a sole proprietorship in Turpid,Nevada.The income from this ranch is $49,000.Wesley wishes to use the easiest possible tax form.He may file:

Accepted Answer

A) Form 1040EZ 
B) Form 1040A 
C) Form 1040 
D) Form 1065 
E) None of the above 
A) Form 1040EZ 
B) Form 1040A 
C) Form 1040 
D) Form 1065 
E) None of the above

Question 14

Eugene and Velma are married.For 2017,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 and Eugene deducts the greater of the standard deduction or itemized deductions,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 15

Jill is a 16-year-old child who is claimed as a dependent by her parents.Jill's only income is $1,400 from her bank savings account.What is the amount of Jill's standard deduction for 2017?

Accepted Answer

A) $1,200 
B) $1,050 
C) $4,000 
D) $6,300 
E) None of the above 
A) $1,200 
B) $1,050 
C) $4,000 
D) $6,300 
E) None of the above

Question 16

For each of the following situations,indicate whether the taxpayer(s)is(are)required to file a tax return for 2017.Explain your answer.
a.​Debra,age 68,and Jerry,age 70,are married and file a joint return.They received $24,000 in interest income from a savings account.
b.Margie is a single taxpayer with wages in 2017 of $8,400 and interest income of $200.
c.​Janie,age 30,and Scott,age 28,are married and file a joint tax return.They had $17,000 in earnings from wages.
d.​Kim,age 20,is a single college student who is claimed as a dependent by her parents.She earned $2,000 from a part-time job and has $450 in interest income.
e.​Stefanie,a 25-year-old single taxpayer,has wages of $1,500,from which $80 of federal income tax was withheld.

Accepted Answer

The answer of For each of the following situations,indicate whether...

Question 17

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.Ye

Question 18

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 19

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

Accepted Answer

A) Sister 
B) Adopted child 
C) Aunt 
D) Parent 
E) All of the above satisfy the test 
A) Sister 
B) Adopted child 
C) Aunt 
D) Parent 
E) All of the above satisfy the test

Question 20

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

Accepted Answer

A) True 
 B)False

What is the formula for computing taxable income,as summarized in the text?

Oscar and Mary have no dependents and file a joint income tax return for 2017.They have adjusted gross income of $140,000 and itemized deductions of $30,000.What is the amount of taxable income that Oscar and Mary must report on their 2017 income tax return?

List each alternative filing status available to unmarried individual taxpayers.

During 2017,Howard maintained his home in which he and his 16 year-old son resided.The son qualifies as his dependent.Howard's wife died in 2016.What is his filing status for 2017?

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 2017 for $290,000.His selling expenses were $12,000 for the year.What was Bob's realized gain on the sale?

Electronically filed tax returns:

Barry is age 45 and a single taxpayer.In 2017,he has gross income of $17,000 and itemized deductions of $6,500.If Barry claims one exemption on his 2017 income tax return,calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

Calculate the amount of the standard deduction the taxpayers should claim on their 2017 income tax returns.

Wesley owns and operates the Cheshire Chicken Ranch as a sole proprietorship in Turpid,Nevada.The income from this ranch is $49,000.Wesley wishes to use the easiest possible tax form.He may file:

Jill is a 16-year-old child who is claimed as a dependent by her parents.Jill's only income is $1,400 from her bank savings account.What is the amount of Jill's standard deduction for 2017?

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.

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

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

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

What is the formula for computing taxable income,as summarized in the text?

Oscar and Mary have no dependents and file a joint income tax return for 2017.They have adjusted gross income of $140,000 and itemized deductions of $30,000.What is the amount of taxable income that Oscar and Mary must report on their 2017 income tax return?

List each alternative filing status available to unmarried individual taxpayers.

During 2017,Howard maintained his home in which he and his 16 year-old son resided.The son qualifies as his dependent.Howard's wife died in 2016.What is his filing status for 2017?

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 2017 for $290,000.His selling expenses were $12,000 for the year.What was Bob's realized gain on the sale?

Electronically filed tax returns:

Barry is age 45 and a single taxpayer.In 2017,he has gross income of $17,000 and itemized deductions of $6,500.If Barry claims one exemption on his 2017 income tax return,calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

Calculate the amount of the standard deduction the taxpayers should claim on their 2017 income tax returns.

Wesley owns and operates the Cheshire Chicken Ranch as a sole proprietorship in Turpid,Nevada.The income from this ranch is $49,000.Wesley wishes to use the easiest possible tax form.He may file:

Jill is a 16-year-old child who is claimed as a dependent by her parents.Jill's only income is $1,400 from her bank savings account.What is the amount of Jill's standard deduction for 2017?

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.

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

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

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