Question 1

Even if property tax rates are not changed,the amount of ad valorem taxes imposed on realty may not remain the same.

Accepted Answer

A) True 
 B)False  True

Question 2

As a matter of administrative convenience,the IRS would prefer to have Congress decrease (rather than increase)the amount of the standard deduction allowed to individual taxpayers.

Accepted Answer

A) True 
 B)False  False

Question 3

Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in 2013.Carlos owns a 60% interest in a partnership that had a profit of $200,000 during the year.The corporation distributed $45,000 to Juanita,and the partnership distributed $45,000 to Carlos.Which of the following statements relating to 2013 is incorrect?

Accepted Answer

A) Juanita must report $120,000 of income from the corporation. 
B) The corporation must pay corporate tax on $200,000 of income. 
C) Carlos must report $120,000 of income from the partnership. 
D) The partnership is not subject to a Federal entity-level income tax. 
E) None of the above. 
A) Juanita must report $120,000 of income from the corporation. 
B) The corporation must pay corporate tax on $200,000 of income. 
C) Carlos must report $120,000 of income from the partnership. 
D) The partnership is not subject to a Federal entity-level income tax. 
E) None of the above. A

Question 4

Allowing a domestic production activities deduction for certain manufacturing income can be justified:

Accepted Answer

A) As mitigating the effect of the annual accounting period concept. 
B) As promoting administrative feasibility. 
C) By economic considerations. 
D) Based on the wherewithal to pay concept. 
E) None of the above. 
A) As mitigating the effect of the annual accounting period concept. 
B) As promoting administrative feasibility. 
C) By economic considerations. 
D) Based on the wherewithal to pay concept. 
E) None of the above.

Question 5

A Federal excise tax is no longer imposed on admission to theaters.

Accepted Answer

A) True 
 B)False

Question 6

The formula for the Federal income tax on corporations is the same as that applicable to individuals.

Accepted Answer

A) True 
 B)False

Question 7

To mitigate the effect of the annual accounting period concept,the tax law permits the carryforward to other years of the excess charitable contributions of a particular year.

Accepted Answer

A) True 
 B)False

Question 8

Sales made by mail order are not exempt from the application of a general sales (or use)tax.

Accepted Answer

A) True 
 B)False

Question 9

Taxes levied by both states and the Federal government include:

Accepted Answer

A) General sales tax. 
B) Custom duties. 
C) Hotel occupancy tax. 
D) Franchise tax. 
E) None of the above. 
A) General sales tax. 
B) Custom duties. 
C) Hotel occupancy tax. 
D) Franchise tax. 
E) None of the above.

Question 10

Due to the population change,the Goose Creek School District has decided to close one of its high schools.Since it has no further need of the property,the school is listed for sale.The two bids it receives are as follows:
 $\begin{array}{ll}
\text { United Methodist Church } & \$ 1,700,000 \
\text { Planet Motors } & 1,600,000
\end{array}$ The United Methodist Church would use the property to establish a sectarian middle school.Planet,a well-known car dealership,would revamp the property and operate it as a branch location.
If you were a member of the School District board,what factors would you consider in evaluating the two bids?

Accepted Answer

Although the bid from the United Methodi

Question 11

Eagle Company,a partnership,had a short-term capital loss of $10,000 during the year.Aaron,who owns 25% of Eagle,will report $2,500 of Eagle's short-term capital loss on his individual tax return.

Accepted Answer

A) True 
 B)False

Question 12

Currently,the Federal income tax is less progressive than it ever has been in the past.

Accepted Answer

A) True 
 B)False

Question 13

Jake,the sole shareholder of Peach Corporation,a C corporation,has the corporation pay him $100,000.For tax purposes,Jake would prefer to have the payment treated as dividend instead of salary.

Accepted Answer

A) True 
 B)False

Question 14

Federal excise taxes that are no longer imposed include:

Accepted Answer

A) Tax on air travel. 
B) Tax on wagering. 
C) Tax on the manufacture of sporting equipment. 
D) Tax on alcohol. 
E) None of the above. 
A) Tax on air travel. 
B) Tax on wagering. 
C) Tax on the manufacture of sporting equipment. 
D) Tax on alcohol. 
E) None of the above.

Question 15

One of the major reasons for the enactment of the Federal estate tax was to prevent large amounts of wealth from being accumulated within the family unit.

Accepted Answer

A) True 
 B)False

Question 16

A lack of compliance in the payment of use taxes can be resolved by several means.In this regard,comment on the following:
 a. Registration of automobiles.
b. Reporting of Internet purchases on state income tax returns

Accepted Answer

The answer of A lack of compliance in the payment...

Question 17

Taxes not imposed by the Federal government include:

Accepted Answer

A) Tobacco excise tax. 
B) Customs duties (tariffs on imports). 
C) Tax on rent cars. 
D) Gas guzzler tax. 
E) None of the above. 
A) Tobacco excise tax. 
B) Customs duties (tariffs on imports). 
C) Tax on rent cars. 
D) Gas guzzler tax. 
E) None of the above.

Question 18

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

Accepted Answer

A) True 
 B)False

Question 19

A use tax is imposed by:

Accepted Answer

A) The Federal government and all states. 
B) The Federal government and a majority of the states. 
C) All states and not the Federal government. 
D) Most of the states and not the Federal government. 
E) None of the above. 
A) The Federal government and all states. 
B) The Federal government and a majority of the states. 
C) All states and not the Federal government. 
D) Most of the states and not the Federal government. 
E) None of the above.

Question 20

Currently,the tax base for the Social Security component of the FICA is not limited to a dollar amount.

Accepted Answer

A) True 
 B)False

Even if property tax rates are not changed,the amount of ad valorem taxes imposed on realty may not remain the same.

As a matter of administrative convenience,the IRS would prefer to have Congress decrease (rather than increase)the amount of the standard deduction allowed to individual taxpayers.

Allowing a domestic production activities deduction for certain manufacturing income can be justified:

A Federal excise tax is no longer imposed on admission to theaters.

The formula for the Federal income tax on corporations is the same as that applicable to individuals.

To mitigate the effect of the annual accounting period concept,the tax law permits the carryforward to other years of the excess charitable contributions of a particular year.

Sales made by mail order are not exempt from the application of a general sales (or use)tax.

Taxes levied by both states and the Federal government include:

Eagle Company,a partnership,had a short-term capital loss of $10,000 during the year.Aaron,who owns 25% of Eagle,will report $2,500 of Eagle's short-term capital loss on his individual tax return.

Currently,the Federal income tax is less progressive than it ever has been in the past.

Jake,the sole shareholder of Peach Corporation,a C corporation,has the corporation pay him $100,000.For tax purposes,Jake would prefer to have the payment treated as dividend instead of salary.

Federal excise taxes that are no longer imposed include:

One of the major reasons for the enactment of the Federal estate tax was to prevent large amounts of wealth from being accumulated within the family unit.

A lack of compliance in the payment of use taxes can be resolved by several means.In this regard,comment on the following: a. Registration of automobiles. b. Reporting of Internet purchases on state income tax returns

Taxes not imposed by the Federal government include:

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

A use tax is imposed by:

Currently,the tax base for the Social Security component of the FICA is not limited to a dollar amount.

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, gain and Loss, and Nontaxable Exchange

Property Transactions: Capital Gains and Losses, section 1231, and Recapture Provisions

Corporations: Organization, capital Structure, and Operating Rules

Corporations: Earnings Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and Corporate Alternative Minimum Tax

Comparative Forms of Doing Business

Introduction to the Taxation of Individuals

Individuals As Employees and Proprietors

Filters

Exam 1: Introduction to Taxation

Even if property tax rates are not changed,the amount of ad valorem taxes imposed on realty may not remain the same.

As a matter of administrative convenience,the IRS would prefer to have Congress decrease (rather than increase)the amount of the standard deduction allowed to individual taxpayers.

Allowing a domestic production activities deduction for certain manufacturing income can be justified:

A Federal excise tax is no longer imposed on admission to theaters.

The formula for the Federal income tax on corporations is the same as that applicable to individuals.

To mitigate the effect of the annual accounting period concept,the tax law permits the carryforward to other years of the excess charitable contributions of a particular year.

Sales made by mail order are not exempt from the application of a general sales (or use)tax.

Taxes levied by both states and the Federal government include:

Eagle Company,a partnership,had a short-term capital loss of $10,000 during the year.Aaron,who owns 25% of Eagle,will report $2,500 of Eagle's short-term capital loss on his individual tax return.

Currently,the Federal income tax is less progressive than it ever has been in the past.

Jake,the sole shareholder of Peach Corporation,a C corporation,has the corporation pay him $100,000.For tax purposes,Jake would prefer to have the payment treated as dividend instead of salary.

Federal excise taxes that are no longer imposed include:

One of the major reasons for the enactment of the Federal estate tax was to prevent large amounts of wealth from being accumulated within the family unit.

A lack of compliance in the payment of use taxes can be resolved by several means.In this regard,comment on the following: a. Registration of automobiles. b. Reporting of Internet purchases on state income tax returns

Taxes not imposed by the Federal government include:

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

A use tax is imposed by:

Currently,the tax base for the Social Security component of the FICA is not limited to a dollar amount.

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, gain and Loss, and Nontaxable Exchange

Property Transactions: Capital Gains and Losses, section 1231, and Recapture Provisions

Corporations: Organization, capital Structure, and Operating Rules

Corporations: Earnings Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and Corporate Alternative Minimum Tax

Comparative Forms of Doing Business

Introduction to the Taxation of Individuals

Individuals As Employees and Proprietors

Filters