Question 1

Which of the following is not a capital asset?

Accepted Answer

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

Question 2

Mr.and Mrs.Vonce,both age 62,file a joint return for 2013.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 2013.How many exemptions may Mr.and Mrs.Vonce claim on their 2013 tax return?

Accepted Answer

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

Question 3

If a taxpayer's adjusted gross income exceeds certain threshold amounts,he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2013.

Accepted Answer

A) True 
 B)False

Question 4

All of the following factors are important in determining whether an individual is required to file an income tax return,except:

Accepted Answer

A) The taxpayer's filing status. 
B) The taxpayer's gross income. 
C) The taxpayer's total itemized deductions. 
D) The availability of the additional standard deduction for taxpayers who are elderly. 
E) None of the above.

Question 5

Which of the following is not a goal of the tax law?

Accepted Answer

A) Encouraging certain social goals such as contributions to charity. 
B) Encouraging certain economic goals such as a thriving business community. 
C) Encouraging smaller families. 
D) Raising revenue to operate the government. 
E) None of the above are goals of the tax law.

Question 6

Karen is single and earns wages of $250,000 in 2013.She has no other income.How much is her ACA Medicare surtax on earned income?

Accepted Answer

The answer of Karen is single and earns wages of...

Question 7

Irma,widowed in 2012,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 2013?

Accepted Answer

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

Question 8

Wesley owns and operates the Cheshire Chicken Ranch 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

Question 9

For each of the following situations,indicate whether the taxpayers)isare)required to file a tax return for 2013.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 2013 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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Norman and Linda are married taxpayers with taxable income of $125,000.
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

The answer of Norman and Linda are married taxpayers with...

Question 12

John,age 25,is a full-time student at a state university.John lives with his unmarried sister,Ann,who provides over half of his support.His only income is $4,000 of wages from a part-time job at the college book store.What is Ann's filing status for 2013?

Accepted Answer

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

Question 13

Amended individual returns are filed on:

Accepted Answer

A) Form 1040X 
B) Form 1120S 
C) Form 1041 
D) Form 1040Amend

Question 14

Madeline is single and supports her 85-year-old parents who live in a senior home paid for by Madeline and have no income.What is Madeline's filing status and why?

Accepted Answer

The answer of Madeline is single and supports her 85-year-old...

Question 15

Theodore,age 74,and Maureen,age 59,are married taxpayers with two dependents.Their adjusted gross income for the 2013 tax year is $43,000,and they have itemized deductions of $7,750.Determine the following for Theodore and Maureen's 2013 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,are married taxpayers with...

Question 16

Determine from the tax table or the tax rate schedule,whichever is appropriate,the amount of the income tax for each of the following taxpayers for 2013. $\begin{array}{llr}\text { Taxpayer(s) }&\text { Filing Status }&\text { Taxable Income }\\hline
\text { Macintosh } & \text { Single } & \$ 35,680 \
\text { Hindmarsh } & \text { MFS } & \$ 62,100 \
\text { Kinney } & \text { MFJ } & \$ 142,000 \
\text { Rosenthal } & \text { H of H } & \$ 91,350 \
\text { Wilk } & \text { Single } & \$ 21,130
\end{array}$

Accepted Answer

The answer of Determine from the tax table or the...

Question 17

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.

Question 18

Which of the following forms may be filed by individual taxpayers?

Accepted Answer

A) Form 1040 
B) Form 1041 
C) Form 1065 
D) Form 1120 
E) None of the above

Question 19

Oscar and Mary have no dependents and file a joint income tax return for 2013.They have adjusted gross income of $145,000 and itemized deductions of $32,000.What is the amount of taxable income that Oscar and Mary must report on their 2013 income tax return?

Accepted Answer

A) $113,000 
B) $109,200 
C) $125,500 
D) $129,300 
E) $105,200

Question 20

A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.

Accepted Answer

A) True 
 B)False

Exam 1: The Individual Income Tax Return

Which of the following is not a capital asset?

If a taxpayer's adjusted gross income exceeds certain threshold amounts,he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2013.

All of the following factors are important in determining whether an individual is required to file an income tax return,except:

Which of the following is not a goal of the tax law?

Karen is single and earns wages of $250,000 in 2013.She has no other income.How much is her ACA Medicare surtax on earned income?

Irma,widowed in 2012,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 2013?

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

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

Norman and Linda are married taxpayers with taxable income of $125,000. 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?

John,age 25,is a full-time student at a state university.John lives with his unmarried sister,Ann,who provides over half of his support.His only income is $4,000 of wages from a part-time job at the college book store.What is Ann's filing status for 2013?

Amended individual returns are filed on:

Madeline is single and supports her 85-year-old parents who live in a senior home paid for by Madeline and have no income.What is Madeline's filing status and why?

Taxpayers who are blind get the benefit of:

Which of the following forms may be filed by individual taxpayers?

Oscar and Mary have no dependents and file a joint income tax return for 2013.They have adjusted gross income of $145,000 and itemized deductions of $32,000.What is the amount of taxable income that Oscar and Mary must report on their 2013 income tax return?

A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.