Question 1

Surviving spouse filing status begins in the year in which the deceased spouse died.

Accepted Answer

A) True 
 B)False

Question 2

All exclusions from gross income are reported on Form 1040.

Accepted Answer

A) True 
 B)False

Question 3

For the year a spouse dies, the surviving spouse is considered married for the entire year for income tax purposes.

Accepted Answer

A) True 
 B)False

Question 4

Frank sold his personal use automobile for a loss of $9,000.He also sold a personal coin collection for a gain of $10,000.As a result of these sales, $10,000 is subject to income tax.

Accepted Answer

A) True 
 B)False

Question 5

Regarding the Tax Tables related to the Federal income tax, which of the following statements is correct?

Accepted Answer

A) For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules. 
B) The Tax Tables will always yield the same amount of tax as the Tax Rate Schedules. 
C) Taxpayers can elect as to whether the use the Tax Tables or the Tax Rate Schedules. 
D) The Tax Tables can be used by an estate but not by a trust. 
E) No correct answer is given. 
A) For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules. 
B) The Tax Tables will always yield the same amount of tax as the Tax Rate Schedules. 
C) Taxpayers can elect as to whether the use the Tax Tables or the Tax Rate Schedules. 
D) The Tax Tables can be used by an estate but not by a trust. 
E) No correct answer is given.

Question 6

Monique is a resident of the United States and a citizen of France.If she files a U.S.income tax return, Monique cannot claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 7

Match the statements that relate to each other.Note: Choice k.may be used more than once.
-Kiddie tax may be imposed

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 8

Once a child reaches age 19, the kiddie tax no longer applies.

Accepted Answer

A) True 
 B)False

Question 9

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-An uncle 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 10

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

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 11

Once they reach age 65, many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.

Accepted Answer

A) True 
 B)False

Question 12

In 2019, Nai-Yu had the following transactions: $$\begin{array} { l r } 
\text { Salary } & \$ 90,000 \
\text { Short-term capital gain from a stock investment } & 4,000 \
\text { Moving expense to change jobs } & ( 11,000 ) \
\text { Receipt of repayment of } \$ 20,000 \text { loan she made to her sister in 2014 (includes no interest) } & 20,000 \
\text { State income taxes } & ( 5,000 )
\end{array}$$ Nai-Yu's AGI is:

Accepted Answer

A) $114,000. 
B) $103,000. 
C) $98,000. 
D) $94,000. 
E) $83,000. 
A) $114,000. 
B) $103,000. 
C) $98,000. 
D) $94,000. 
E) $83,000.

Question 13

Natalie is married to Chad, who abandoned her in early June of 2019.She has not seen or communicated with him since then.She maintains a household in which she and her two dependent children live.Which of the following statements about Natalie's filing status in 2019 is correct?

Accepted Answer

A) Natalie can use the rates for single taxpayers. 
B) Natalie can file a joint return with Chad. 
C) Natalie can file as a surviving spouse. 
D) Natalie can file as a head of household. 
E) None of these statements is appropriate. 
A) Natalie can use the rates for single taxpayers. 
B) Natalie can file a joint return with Chad. 
C) Natalie can file as a surviving spouse. 
D) Natalie can file as a head of household. 
E) None of these statements is appropriate.

Question 14

A taxpayer who itemizes uses Schedule A (Form 1040).

Accepted Answer

A) True 
 B)False

Question 15

During 2019, Sandeep had the following transactions: $$\begin{array} { l r } 
\text { Salary } & \$ 80,000 \
\text { Interest income on City of Baltimore bonds } & 1,000 \
\text { Damages for personal injury (car accident) } & 100,000 \
\text { Punitive damages (same car accident) } & 200,000 \
\text { Cash dividends from Chevron Corporation stock } & 7,000
\end{array}$$ Sandeep's AGI is:

Accepted Answer

A) $185,000. 
B) $187,000. 
C) $285,000. 
D) $287,000. 
E) $387,000. 
A) $185,000. 
B) $187,000. 
C) $285,000. 
D) $287,000. 
E) $387,000.

Question 16

Darren, age 20 and not disabled, earns $4,300 during 2019.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Accepted Answer

A) True 
 B)False

Question 17

Kirby, a single taxpayer, has taxable income of $30,000 and is in the 12% tax bracket.During 2019, she had the following capital asset transactions: $\begin{array}{llcc}
  \text {Long-term gain from the sale of a coin collection  } &\$11,000\
 \text { Long-term gain from the sale of a land investment } &10,000\
 \text {  Short-term gain from the sale of a stock investment} &2,000\
\end{array}$
 Kirby's tax consequences from these gains are as follows:

Accepted Answer

A) (5% × $10,000) + (12% × $13,000). 
B) (12% × $13,000) + (28% × $11,000). 
C) (0% × $10,000) + (12% × $13,000). 
D) (12% × $23,000). 
E) None of these. 
A) (5% × $10,000) + (12% × $13,000). 
B) (12% × $13,000) + (28% × $11,000). 
C) (0% × $10,000) + (12% × $13,000). 
D) (12% × $23,000). 
E) None of these.

Question 18

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Scholarship funds for tuition

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.

Surviving spouse filing status begins in the year in which the deceased spouse died.

All exclusions from gross income are reported on Form 1040.

For the year a spouse dies, the surviving spouse is considered married for the entire year for income tax purposes.

Frank sold his personal use automobile for a loss of $9,000.He also sold a personal coin collection for a gain of $10,000.As a result of these sales, $10,000 is subject to income tax.

Regarding the Tax Tables related to the Federal income tax, which of the following statements is correct?

Monique is a resident of the United States and a citizen of France.If she files a U.S.income tax return, Monique cannot claim the standard deduction.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Kiddie tax may be imposed

Once a child reaches age 19, the kiddie tax no longer applies.

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

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

Once they reach age 65, many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.

In 2019, Nai-Yu had the following transactions: Salary \ 90,000 Short-term capital gain from a stock investment 4,000 Moving expense to change jobs (11,000) Receipt of repayment of \ 20,000 loan she made to her sister in 2014 (includes no interest) 20,000 State income taxes (5,000) Nai-Yu's AGI is:

Natalie is married to Chad, who abandoned her in early June of 2019.She has not seen or communicated with him since then.She maintains a household in which she and her two dependent children live.Which of the following statements about Natalie's filing status in 2019 is correct?

A taxpayer who itemizes uses Schedule A (Form 1040).

During 2019, Sandeep had the following transactions: Salary \ 80,000 Interest income on City of Baltimore bonds 1,000 Damages for personal injury (car accident) 100,000 Punitive damages (same car accident) 200,000 Cash dividends from Chevron Corporation stock 7,000 Sandeep's AGI is:

Darren, age 20 and not disabled, earns $4,300 during 2019.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Match the statements that relate to each other.Note: Some choices may be used more than once. -Scholarship funds for tuition

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

Surviving spouse filing status begins in the year in which the deceased spouse died.

All exclusions from gross income are reported on Form 1040.

For the year a spouse dies, the surviving spouse is considered married for the entire year for income tax purposes.

Frank sold his personal use automobile for a loss of $9,000.He also sold a personal coin collection for a gain of $10,000.As a result of these sales, $10,000 is subject to income tax.

Regarding the Tax Tables related to the Federal income tax, which of the following statements is correct?

Monique is a resident of the United States and a citizen of France.If she files a U.S.income tax return, Monique cannot claim the standard deduction.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Kiddie tax may be imposed

Once a child reaches age 19, the kiddie tax no longer applies.

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

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

Once they reach age 65, many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.

In 2019, Nai-Yu had the following transactions: Salary \ 90,000 Short-term capital gain from a stock investment 4,000 Moving expense to change jobs (11,000) Receipt of repayment of \ 20,000 loan she made to her sister in 2014 (includes no interest) 20,000 State income taxes (5,000) Nai-Yu's AGI is:

Natalie is married to Chad, who abandoned her in early June of 2019.She has not seen or communicated with him since then.She maintains a household in which she and her two dependent children live.Which of the following statements about Natalie's filing status in 2019 is correct?

A taxpayer who itemizes uses Schedule A (Form 1040).

During 2019, Sandeep had the following transactions: Salary \ 80,000 Interest income on City of Baltimore bonds 1,000 Damages for personal injury (car accident) 100,000 Punitive damages (same car accident) 200,000 Cash dividends from Chevron Corporation stock 7,000 Sandeep's AGI is:

Darren, age 20 and not disabled, earns $4,300 during 2019.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Match the statements that relate to each other.Note: Some choices may be used more than once. -Scholarship funds for tuition

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