Question 1

In any given year, that year's Tax Tables are released by the IRS before the Tax Rate Schedules for that year.

Accepted Answer

A) True 
 B)False

Question 2

Match the statements that relate to each other.Note: Choice k.may be used more than once.
-Tax Rate Schedule

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.

Question 3

During 2019, Enrique had the following transactions: $$\begin{array} { l r } 
\text { Salary } & \$ 70,000 \
\text { Interest income on Xerox bonds } & 2,000 \
\text { Inheritance from uncle } & 40,000 \
\text { Contribution to traditional IRA } & 5,500 \
\text { Capital losses } & 2,500
\end{array}$$ Enrique's AGI is:

Accepted Answer

A) $62,000. 
B) $64,000. 
C) $67,000. 
D) $102,000. 
E) $104,000. 
A) $62,000. 
B) $64,000. 
C) $67,000. 
D) $102,000. 
E) $104,000.

Question 4

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-A daughter 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 5

The Hutters filed a joint return for 2019.They provide more than 50% of the support of Carla, Ellie, and Aaron. Carla (age 18) is a cousin and earns $2,800 from a part-time job.Ellie (age 25) is their daughter and is a full-time law student.She received a $7,500 scholarship for tuition from her law school.Aaron is a brother who is a citizen of Israel but resides in France.Carla and Ellie live with the Hutters.How many dependents can the Hutters claim?

Accepted Answer

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

Question 6

Butch and Minerva divorced in December 2019.Since they were married for more than one-half of the year, they are considered as married for 2019.

Accepted Answer

A) True 
 B)False

Question 7

Jeremy is married to Amy, who abandoned him in 2018.He has not seen or communicated with her since April of that year.He maintains a household in which their son, Evan, lives.Evan is age 25 and earns over $6,000 each year.For tax year 2019, Jeremy's filing status is:

Accepted Answer

A) Married, filing jointly. 
B) Head of household. 
C) Married, filing separately. 
D) Surviving spouse. 
E) Single. 
A) Married, filing jointly. 
B) Head of household. 
C) Married, filing separately. 
D) Surviving spouse. 
E) Single.

Question 8

In determining the filing requirement based on gross income received, both additional standard deductions (i.e., age and blindness) are taken into account.

Accepted Answer

A) True 
 B)False

Question 9

For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

Accepted Answer

A) True 
 B)False

Question 10

Under the Federal income tax formula for individuals, the determination of adjusted gross income (AGI) precedes that of taxable income (TI).

Accepted Answer

A) True 
 B)False

Question 11

Match the statements that relate to each other.Note: Choice k.may be used more than once.
-Multiple support agreement

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.

Question 12

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea.Kim can claim a dependent tax credit for his parents.

Accepted Answer

A) True 
 B)False

Question 13

In 2019, a child who has unearned income of $2,200 or less cannot be subject to the kiddie tax.

Accepted Answer

A) True 
 B)False

Question 14

Currently, the top income tax rate in effect is not the highest it has ever been.

Accepted Answer

A) True 
 B)False

Question 15

Millie, age 80, is supported during the current year as follows: $$\begin{array} { l c } 
& \begin{array} { c } 
\text { Percent of } \
\text { Support }
\end{array} \
\text { Weston (a son) } & 20 \% \
\text { Faith (a daughter) } & 35 \% \
\text { Jake (a cousin) } & 25 \% \
\text { Brayden (unrelated close family friend) } & 20 \%
\end{array}$$ During the year, Millie lives in an assisted living facility.Under a multiple support agreement, indicate which parties can qualify to claim Millie as a dependent.

Accepted Answer

A) Weston and Faith. 
B) Faith. 
C) Weston, Faith, Jake, and Brayden. 
D) Faith, Jake, and Brayden. 
E) None of these. 
A) Weston and Faith. 
B) Faith. 
C) Weston, Faith, Jake, and Brayden. 
D) Faith, Jake, and Brayden. 
E) None of these.

Question 16

Match the statements that relate to each other.Note: Choice k.may be used more than once.
-Additional standard deduction

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.

Question 17

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Resident of Canada or Mexico

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 18

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-A son lives with taxpayer and earns $3,000.

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 19

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-A niece who lives with taxpayer, is 20 years old, earns $5,000, and is a full-time student.

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 20

Ed is divorced and maintains a home in which he and a dependent friend live.Ed does not qualify for head of household filing status.

Accepted Answer

A) True 
 B)False

In any given year, that year's Tax Tables are released by the IRS before the Tax Rate Schedules for that year.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Tax Rate Schedule

During 2019, Enrique had the following transactions: Salary \ 70,000 Interest income on Xerox bonds 2,000 Inheritance from uncle 40,000 Contribution to traditional IRA 5,500 Capital losses 2,500 Enrique's AGI is:

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

Butch and Minerva divorced in December 2019.Since they were married for more than one-half of the year, they are considered as married for 2019.

Jeremy is married to Amy, who abandoned him in 2018.He has not seen or communicated with her since April of that year.He maintains a household in which their son, Evan, lives.Evan is age 25 and earns over $6,000 each year.For tax year 2019, Jeremy's filing status is:

In determining the filing requirement based on gross income received, both additional standard deductions (i.e., age and blindness) are taken into account.

For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

Under the Federal income tax formula for individuals, the determination of adjusted gross income (AGI) precedes that of taxable income (TI).

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Multiple support agreement

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea.Kim can claim a dependent tax credit for his parents.

In 2019, a child who has unearned income of $2,200 or less cannot be subject to the kiddie tax.

Currently, the top income tax rate in effect is not the highest it has ever been.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Additional standard deduction

Match the statements that relate to each other.Note: Some choices may be used more than once. -Resident of Canada or Mexico

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A son lives with taxpayer and earns $3,000.

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A niece who lives with taxpayer, is 20 years old, earns $5,000, and is a full-time student.

Ed is divorced and maintains a home in which he and a dependent friend live.Ed does not qualify for head of household filing status.

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

In any given year, that year's Tax Tables are released by the IRS before the Tax Rate Schedules for that year.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Tax Rate Schedule

During 2019, Enrique had the following transactions: Salary \ 70,000 Interest income on Xerox bonds 2,000 Inheritance from uncle 40,000 Contribution to traditional IRA 5,500 Capital losses 2,500 Enrique's AGI is:

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

Butch and Minerva divorced in December 2019.Since they were married for more than one-half of the year, they are considered as married for 2019.

Jeremy is married to Amy, who abandoned him in 2018.He has not seen or communicated with her since April of that year.He maintains a household in which their son, Evan, lives.Evan is age 25 and earns over $6,000 each year.For tax year 2019, Jeremy's filing status is:

In determining the filing requirement based on gross income received, both additional standard deductions (i.e., age and blindness) are taken into account.

For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

Under the Federal income tax formula for individuals, the determination of adjusted gross income (AGI) precedes that of taxable income (TI).

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Multiple support agreement

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea.Kim can claim a dependent tax credit for his parents.

In 2019, a child who has unearned income of $2,200 or less cannot be subject to the kiddie tax.

Currently, the top income tax rate in effect is not the highest it has ever been.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Additional standard deduction

Match the statements that relate to each other.Note: Some choices may be used more than once. -Resident of Canada or Mexico

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A son lives with taxpayer and earns $3,000.

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A niece who lives with taxpayer, is 20 years old, earns $5,000, and is a full-time student.

Ed is divorced and maintains a home in which he and a dependent friend live.Ed does not qualify for head of household filing status.

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