Question 1

Which of the following statements is incorrect?

Accepted Answer

A) Property taxes are levied on real estate. 
B) Excise taxes are assessed on items such as gasoline and telephone use. 
C) Gift taxes are imposed on the recipient of a gift. 
D) The estate tax is based on the fair market value of property at death or the alternate valuation date. 
A) Property taxes are levied on real estate. 
B) Excise taxes are assessed on items such as gasoline and telephone use. 
C) Gift taxes are imposed on the recipient of a gift. 
D) The estate tax is based on the fair market value of property at death or the alternate valuation date.

Question 2

Explain how returns are selected for audit.

Accepted Answer

The IRS uses both computers and experien

Question 3

Which of the following taxes is proportional?

Accepted Answer

A) gift tax 
B) income tax 
C) sales tax 
D) Federal Insurance Contributions Act (FIC
A)  
A) gift tax 
B) income tax 
C) sales tax 
D) Federal Insurance Contributions Act (FIC
A)

Question 4

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

Accepted Answer

A) $6,250. 
B) $8,750. 
C) $16,250. 
D) $18,750. 
A) $6,250. 
B) $8,750. 
C) $16,250. 
D) $18,750.

Question 5

Paul makes the following property transfers in the current year:   The total of Paul's taxable gifts,assuming he does not elect gift splitting with his spouse,subject to the unified transfer tax is

Accepted Answer

A) $206,000. 
B) $214,000. 
C) $234,000. 
D) $279,000. 
A) $206,000. 
B) $214,000. 
C) $234,000. 
D) $279,000.

Question 6

The IRS must pay interest on

Accepted Answer

A) all tax refunds. 
B) tax refunds paid later than 30 days after the due date. 
C) tax refunds paid later than 45 days after the due date. 
D) The IRS never pays interest on tax refunds. 
A) all tax refunds. 
B) tax refunds paid later than 30 days after the due date. 
C) tax refunds paid later than 45 days after the due date. 
D) The IRS never pays interest on tax refunds.

Question 7

Which of the following taxes is regressive?

Accepted Answer

A) Federal Insurance Contributions Act (FIC
A)  
B) excise tax 
C) property tax 
D) gift tax 
A) Federal Insurance Contributions Act (FIC
A)  
B) excise tax 
C) property tax 
D) gift tax

Question 8

Briana,who is single,has taxable income for the current year of $78,000,resulting in a total tax of $15,271.Her total economic income is $98,000.Briana's average tax rate and effective tax rate are,respectively,

Accepted Answer

A) 19.58% and 15.58%. 
B) 25% and 28%. 
C) 19.58% and 25%. 
D) 15.58% and 19.58%. 
A) 19.58% and 15.58%. 
B) 25% and 28%. 
C) 19.58% and 25%. 
D) 15.58% and 19.58%.

Question 9

Eric dies in the current year and has a gross estate valued at $6,500,000.The estate incurs funeral and administrative expenses of $100,000 and also pays off Eric's debts which amount to $250,000.Eric bequeaths $600,000 to his wife.Eric made no taxable transfers during his life.Eric's taxable estate will be

Accepted Answer

A) $100,000. 
B) $5,550,000. 
C) $6,150,000. 
D) $6,500,000. 
A) $100,000. 
B) $5,550,000. 
C) $6,150,000. 
D) $6,500,000.

Which of the following statements is incorrect?

Explain how returns are selected for audit.

Which of the following taxes is proportional?

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

Paul makes the following property transfers in the current year: The total of Paul's taxable gifts,assuming he does not elect gift splitting with his spouse,subject to the unified transfer tax is

The IRS must pay interest on

Which of the following taxes is regressive?

Briana,who is single,has taxable income for the current year of $78,000,resulting in a total tax of $15,271.Her total economic income is $98,000.Briana's average tax rate and effective tax rate are,respectively,

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Section 1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

Exam 1: An Introduction to Taxation

Which of the following statements is incorrect?

Explain how returns are selected for audit.

Which of the following taxes is proportional?

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

Paul makes the following property transfers in the current year: The total of Paul's taxable gifts,assuming he does not elect gift splitting with his spouse,subject to the unified transfer tax is

The IRS must pay interest on

Which of the following taxes is regressive?

Briana,who is single,has taxable income for the current year of $78,000,resulting in a total tax of $15,271.Her total economic income is $98,000.Briana's average tax rate and effective tax rate are,respectively,

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Section 1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters