Question 1

All of the following items are deductions for adjusted gross income except

Accepted Answer

A) interest on student loans. 
B) unreimbursed employee business expenses. 
C) qualifying contributions to individual retirement accounts. 
D) one-half of self-employment taxes on year's earnings. 
A) interest on student loans. 
B) unreimbursed employee business expenses. 
C) qualifying contributions to individual retirement accounts. 
D) one-half of self-employment taxes on year's earnings.

Question 2

The term "gross income" means the total of all income from any source,but after reduction for exclusions.

Accepted Answer

A) True 
 B)False

Question 3

Juanita's mother lives with her.Juanita purchased clothing for her mother costing $1,000 and provided her with a room that Juanita estimates she could have rented for $4,000.Juanita spent $5,000 on groceries she shared with her mother.Juanita also paid $700 for her mother's health insurance coverage.How much of these costs is considered support?

Accepted Answer

A) $5,000 
B) $8,200 
C) $10,000 
D) $10,700 
A) $5,000 
B) $8,200 
C) $10,000 
D) $10,700

Question 4

Generally,when a married couple files a joint return,each spouse is liable for one-half of the entire tax and any penalties incurred.

Accepted Answer

A) True 
 B)False

Question 5

Lewis,who is single,is claimed as a dependent by his parents.He received $2,000 during the year in dividends,which was his only income.What is his standard deduction for 2019?

Accepted Answer

A) $1,100 
B) $2,000 
C) $2,350 
D) $12,200 
A) $1,100 
B) $2,000 
C) $2,350 
D) $12,200

Question 6

Which of the following dependent relatives does not have to live in the same household as the taxpayer who is claiming head of household filing status?

Accepted Answer

A) uncle 
B) brother 
C) father 
D) nephew 
A) uncle 
B) brother 
C) father 
D) nephew

Question 7

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Accepted Answer

A) he or she and the decedent must have shared the same household as of date of death. 
B) he or she must be a U.S.citizen or resident. 
C) he or she must be qualified to file a joint return in the year of death. 
D) he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home. 
A) he or she and the decedent must have shared the same household as of date of death. 
B) he or she must be a U.S.citizen or resident. 
C) he or she must be qualified to file a joint return in the year of death. 
D) he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home.

Question 8

All of the following items are deductions for adjusted gross income except

Accepted Answer

A) contributions to health savings accounts. 
B) trade or business expenses. 
C) rent and royalty expenses. 
D) state and local income taxes. 
A) contributions to health savings accounts. 
B) trade or business expenses. 
C) rent and royalty expenses. 
D) state and local income taxes.

Question 9

If a 13-year-old has earned income of $500 and interest and dividends of $2,500,all of the income can be reported on the parent's return.

Accepted Answer

A) True 
 B)False

Question 10

Suri,age 8,is a dependent of her parents and has unearned income of $6,000.She must file her own tax return.

Accepted Answer

A) True 
 B)False

Question 11

All of the following items are generally excluded from income except

Accepted Answer

A) child support payments. 
B) interest on corporate bonds. 
C) interest on state and local government bonds. 
D) life insurance proceeds paid by reason of death. 
A) child support payments. 
B) interest on corporate bonds. 
C) interest on state and local government bonds. 
D) life insurance proceeds paid by reason of death.

Question 12

Deborah is claimed as a dependent by her parents.She had a part-time acting job during 2019 and earned $13,000 during the year,which was her only income.What is her standard deduction?

Accepted Answer

A) $13,000 
B) $1,100 
C) $12,200 
D) $13,350 
A) $13,000 
B) $1,100 
C) $12,200 
D) $13,350

Question 13

A taxpayer is able to change his filing status from married filing jointly to married filing separately by filing an amended return.

Accepted Answer

A) True 
 B)False

Question 14

The only business entity that pays federal income taxes is the C corporation.

Accepted Answer

A) True 
 B)False

Question 15

The child credit is for taxpayers with dependent children under the age of

Accepted Answer

A) 14. 
B) 17. 
C) 19. 
D) 24. 
A) 14. 
B) 17. 
C) 19. 
D) 24.

Question 16

Mr.and Mrs.Kusra are in the top tax bracket.They have just had a baby.The Kusras plan to gift a corporate bond they currently own to the baby.The bond pays $2,100 of interest income per year.The Kusra family overall will save taxes if the bond is transferred to the child.

Accepted Answer

A) True 
 B)False

Question 17

Taxable income for an individual is generally defined as

Accepted Answer

A) AGI reduced by itemized deductions and tax credits. 
B) gross income reduced by itemized deductions. 
C) AGI reduced by tax credits. 
D) AGI reduced by the greater of the standard deduction or itemized deductions. 
A) AGI reduced by itemized deductions and tax credits. 
B) gross income reduced by itemized deductions. 
C) AGI reduced by tax credits. 
D) AGI reduced by the greater of the standard deduction or itemized deductions.

Question 18

Yusef,age 15,is a dependent of his parents.In 2019 he earned $5,000 from a part-time job and $8,000 of interest income on bonds given him by his grandparents,resulting in taxable income of $7,650.Under kiddie tax rules,calculation of tax requires dividing taxable income between net unearned income and earned taxable income.Yusef's taxable income will be divided as follows

Accepted Answer

A) net unearned income -$5,800 and earned taxable income -$1,850. 
B) net unearned income -$7,650 and earned taxable income -$0. 
C) net unearned income -$0 and earned taxable income -$7,650. 
D) net unearned income -$1,850 and earned taxable income -$5,800. 
A) net unearned income -$5,800 and earned taxable income -$1,850. 
B) net unearned income -$7,650 and earned taxable income -$0. 
C) net unearned income -$0 and earned taxable income -$7,650. 
D) net unearned income -$1,850 and earned taxable income -$5,800.

Question 19

In 2016,Leo's wife died.Leo has two small children,ages 2 and 4,living at home whom he supports entirely.Leo does not remarry and is not claimed as a dependent on another's return during any of this period.In 2017,2018,and 2019,Leo's most advantageous filing status is,respectively

Accepted Answer

A) single for all three years. 
B) head of household for all three years. 
C) surviving spouse,surviving spouse,head of household. 
D) surviving spouse,surviving spouse,single. 
A) single for all three years. 
B) head of household for all three years. 
C) surviving spouse,surviving spouse,head of household. 
D) surviving spouse,surviving spouse,single.

Question 20

In 2019,the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

Accepted Answer

A) $25,700. 
B) $27,700. 
C) $27,000. 
D) $24,400. 
A) $25,700. 
B) $27,700. 
C) $27,000. 
D) $24,400.

Exam 18: Determination of Tax

All of the following items are deductions for adjusted gross income except

The term "gross income" means the total of all income from any source,but after reduction for exclusions.

Generally,when a married couple files a joint return,each spouse is liable for one-half of the entire tax and any penalties incurred.

Lewis,who is single,is claimed as a dependent by his parents.He received $2,000 during the year in dividends,which was his only income.What is his standard deduction for 2019?

Which of the following dependent relatives does not have to live in the same household as the taxpayer who is claiming head of household filing status?

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

All of the following items are deductions for adjusted gross income except

If a 13-year-old has earned income of $500 and interest and dividends of $2,500,all of the income can be reported on the parent's return.

Suri,age 8,is a dependent of her parents and has unearned income of $6,000.She must file her own tax return.

All of the following items are generally excluded from income except

Deborah is claimed as a dependent by her parents.She had a part-time acting job during 2019 and earned $13,000 during the year,which was her only income.What is her standard deduction?

A taxpayer is able to change his filing status from married filing jointly to married filing separately by filing an amended return.

The only business entity that pays federal income taxes is the C corporation.

The child credit is for taxpayers with dependent children under the age of

Mr.and Mrs.Kusra are in the top tax bracket.They have just had a baby.The Kusras plan to gift a corporate bond they currently own to the baby.The bond pays $2,100 of interest income per year.The Kusra family overall will save taxes if the bond is transferred to the child.

Taxable income for an individual is generally defined as

In 2016,Leo's wife died.Leo has two small children,ages 2 and 4,living at home whom he supports entirely.Leo does not remarry and is not claimed as a dependent on another's return during any of this period.In 2017,2018,and 2019,Leo's most advantageous filing status is,respectively

In 2019,the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

U.S. Taxation of Foreign-Related Transactions

an Introduction to Taxation

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Business Expenses and Deferred Compensation

Itemized Deductions

Losses and Bad Debts

Depreciation,cost Recovery,amortization,and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

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

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

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