Question 1

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Abandoned spouse

Accepted Answer

A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided. 
A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided.

Question 2

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-A family friend who is supported by and lives with the taxpayer.

Accepted Answer

A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative. 
A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative.

Question 3

Evan and Eileen Carter are husband and wife and file a joint return for 2019.Both are under 65 years of age.They provide more than half of the support of their daughter, Pamela (age 25), who is a full-time medical student.Pamela receives a $5,000 scholarship covering her tuition at college.Evan and Eileen furnish all of the support of Belinda (Evan's grandmother), who is age 80 and lives in a nursing home.They also support Peggy (age 66), who is a friend of the family and lives with them.How many dependents may the Carters claim?

Accepted Answer

A) None 
B) One 
C) Two 
D) Three 
A) None 
B) One 
C) Two 
D) Three

Question 4

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-A half-brother who lives with taxpayer.

Accepted Answer

A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative. 
A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative.

Question 5

Using borrowed funds from a mortgage on her home, Leah provides 52% of her own support, and her sons furnished the rest.Leah can be claimed as a dependent under a multiple support agreement.

Accepted Answer

A) True 
 B)False

Question 6

Kyle, whose wife died in December 2016, filed a joint tax return for 2016.He did not remarry but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status in 2019?

Accepted Answer

A) Head of household 
B) Surviving spouse 
C) Single 
D) Married filing separately 
E) None of these 
A) Head of household 
B) Surviving spouse 
C) Single 
D) Married filing separately 
E) None of these

Question 7

Derek, age 46, is a surviving spouse.If he has itemized deductions of $26,250 for 2019, Derek should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 8

Debby, age 18, is claimed as a dependent by her mother.During 2019, Debby earned $1,200 in interest income on a savings account.Her standard deduction is $1,550 ($1,200 + $350).

Accepted Answer

A) True 
 B)False

Question 9

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Kiddie tax does not apply

Accepted Answer

A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided. 
A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided.

Question 10

Buddy and Hazel are ages 72 and 71, respectively, and file a joint return.If they have itemized deductions of $25,100 for 2019, they should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 11

Tony, age 15, is claimed as a dependent by his grandmother.During 2019, he had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800.Tony's taxable income is:

Accepted Answer

A) $1,800. 
B) $1,800 - $800 - $1,100 = ($100). 
C) $1,800 - $1,150 = $650. 
D) $1,800 - $1,100 = $700. 
E) None of these. 
A) $1,800. 
B) $1,800 - $800 - $1,100 = ($100). 
C) $1,800 - $1,150 = $650. 
D) $1,800 - $1,100 = $700. 
E) None of these.

Question 12

During 2019, Trevor has the following capital transactions: $$\begin{array} { l r } 
\text { LTCG } & \$ 6,000 \
\text { Long-term collectible gain } & 2,000 \
\text { STCG } & 4,000 \
\text { STCL } & 10,000
\end{array}$$ After the netting process, the following results:

Accepted Answer

A) Long-term collectible gain of $2,000. 
B) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL of $6,000. 
C) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL carryover to 2019 of $3,000. 
D) LTCG of $2,000. 
E) None of these. 
A) Long-term collectible gain of $2,000. 
B) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL of $6,000. 
C) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL carryover to 2019 of $3,000. 
D) LTCG of $2,000. 
E) None of these.

Question 13

Ayla, age 17, is claimed by her parents as a dependent.During 2019, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Ayla's taxable income is:

Accepted Answer

A) $4,200 - $4,550 = $0. 
B) $6,200 - $5,700 = $500. 
C) $6,200 - $4,550 = $1,650. 
D) $6,200 - $1,000 = $5,200. 
E) None of these. 
A) $4,200 - $4,550 = $0. 
B) $6,200 - $5,700 = $500. 
C) $6,200 - $4,550 = $1,650. 
D) $6,200 - $1,000 = $5,200. 
E) None of these.

Question 14

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-A stepdaughter who does not live with taxpayer.

Accepted Answer

A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative. 
A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative.

Question 15

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Surviving spouse

Accepted Answer

A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided. 
A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided.

Question 16

Since an abandoned spouse is treated as not married and has one or more dependent children, he or she qualifies for the standard deduction available to head of household.

Accepted Answer

A) True 
 B)False

Question 17

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

Accepted Answer

A) True 
 B)False

Question 18

Hannah, age 70 and single, is claimed as a dependent by her daughter.During 2019, Hannah had interest income of $2,550 and $850 of earned income from babysitting.Hannah's taxable income is:

Accepted Answer

A) $700. 
B) $900. 
C) $2,200. 
D) $2,550. 
E) None of these. 
A) $700. 
B) $900. 
C) $2,200. 
D) $2,550. 
E) None of these.

Question 19

Married taxpayers who file a joint return cannot later (i.e., after the filing due date) switch to separate returns for that year.

Accepted Answer

A) True 
 B)False

Question 20

Match the statements that relate to each other.Note: Choice k.may be used more than once.
-Gain on collectibles (held more than one year)

Accepted Answer

A) Available to a 70-year-old father claimed as a dependent by his son. 
B) Equal to tax liability divided by taxable income. 
C) The highest income tax rate applicable to a taxpayer. 
D) Not eligible for the standard deduction. 
E) No one qualified taxpayer meets the support test.
F)Taxpayer's ex-husband does not qualify.
G)A dependent child (age 18) who has only unearned income.
H)Highest applicable rate is 37%.
I)Applicable rate could be as low as 0%.
J)Maximum rate is 28%.
K)No correct match provided. 
A) Available to a 70-year-old father claimed as a dependent by his son. 
B) Equal to tax liability divided by taxable income. 
C) The highest income tax rate applicable to a taxpayer. 
D) Not eligible for the standard deduction. 
E) No one qualified taxpayer meets the support test.
F)Taxpayer's ex-husband does not qualify.
G)A dependent child (age 18) who has only unearned income.
H)Highest applicable rate is 37%.
I)Applicable rate could be as low as 0%.
J)Maximum rate is 28%.
K)No correct match provided.

Match the statements that relate to each other.Note: Some choices may be used more than once. -Abandoned spouse

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A family friend who is supported by and lives with the taxpayer.

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A half-brother who lives with taxpayer.

Using borrowed funds from a mortgage on her home, Leah provides 52% of her own support, and her sons furnished the rest.Leah can be claimed as a dependent under a multiple support agreement.

Kyle, whose wife died in December 2016, filed a joint tax return for 2016.He did not remarry but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status in 2019?

Derek, age 46, is a surviving spouse.If he has itemized deductions of $26,250 for 2019, Derek should not claim the standard deduction.

Debby, age 18, is claimed as a dependent by her mother.During 2019, Debby earned $1,200 in interest income on a savings account.Her standard deduction is $1,550 ($1,200 + $350).

Match the statements that relate to each other.Note: Some choices may be used more than once. -Kiddie tax does not apply

Buddy and Hazel are ages 72 and 71, respectively, and file a joint return.If they have itemized deductions of $25,100 for 2019, they should not claim the standard deduction.

Tony, age 15, is claimed as a dependent by his grandmother.During 2019, he had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800.Tony's taxable income is:

During 2019, Trevor has the following capital transactions: LTCG \ 6,000 Long-term collectible gain 2,000 STCG 4,000 STCL 10,000 After the netting process, the following results:

Ayla, age 17, is claimed by her parents as a dependent.During 2019, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Ayla's taxable income is:

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A stepdaughter who does not live with taxpayer.

Match the statements that relate to each other.Note: Some choices may be used more than once. -Surviving spouse

Since an abandoned spouse is treated as not married and has one or more dependent children, he or she qualifies for the standard deduction available to head of household.

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

Hannah, age 70 and single, is claimed as a dependent by her daughter.During 2019, Hannah had interest income of $2,550 and $850 of earned income from babysitting.Hannah's taxable income is:

Married taxpayers who file a joint return cannot later (i.e., after the filing due date) switch to separate returns for that year.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Gain on collectibles (held more than one year)

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basic Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

Exam 3: Tax Formula and Tax Determination an Overview of Property Transactions

Match the statements that relate to each other.Note: Some choices may be used more than once. -Abandoned spouse

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A family friend who is supported by and lives with the taxpayer.

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A half-brother who lives with taxpayer.

Using borrowed funds from a mortgage on her home, Leah provides 52% of her own support, and her sons furnished the rest.Leah can be claimed as a dependent under a multiple support agreement.

Kyle, whose wife died in December 2016, filed a joint tax return for 2016.He did not remarry but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status in 2019?

Derek, age 46, is a surviving spouse.If he has itemized deductions of $26,250 for 2019, Derek should not claim the standard deduction.

Debby, age 18, is claimed as a dependent by her mother.During 2019, Debby earned $1,200 in interest income on a savings account.Her standard deduction is $1,550 ($1,200 + $350).

Match the statements that relate to each other.Note: Some choices may be used more than once. -Kiddie tax does not apply

Buddy and Hazel are ages 72 and 71, respectively, and file a joint return.If they have itemized deductions of $25,100 for 2019, they should not claim the standard deduction.

Tony, age 15, is claimed as a dependent by his grandmother.During 2019, he had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800.Tony's taxable income is:

During 2019, Trevor has the following capital transactions: LTCG \ 6,000 Long-term collectible gain 2,000 STCG 4,000 STCL 10,000 After the netting process, the following results:

Ayla, age 17, is claimed by her parents as a dependent.During 2019, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Ayla's taxable income is:

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A stepdaughter who does not live with taxpayer.

Match the statements that relate to each other.Note: Some choices may be used more than once. -Surviving spouse

Since an abandoned spouse is treated as not married and has one or more dependent children, he or she qualifies for the standard deduction available to head of household.

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

Hannah, age 70 and single, is claimed as a dependent by her daughter.During 2019, Hannah had interest income of $2,550 and $850 of earned income from babysitting.Hannah's taxable income is:

Married taxpayers who file a joint return cannot later (i.e., after the filing due date) switch to separate returns for that year.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Gain on collectibles (held more than one year)

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basic Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters