Exam 1: Introduction to Taxation

Below is a list of items that are found in the tax models. Use C to identify items only found in the corporate tax model; use I to identify those items only found in the individual tax model; use B to identify those items found in both models. -Total income

Identify the following items with an R if it is a deduction For adjusted gross income. Identify with an M if it is a deduction From adjusted gross income. -Medical expense

Darden Corporation has taxable income of $420,000. If it distributes all of its after-tax income to its sole shareholder who is in the 35 percent marginal tax bracket, what is the total tax burden on this $420,000 of income?

Wilma and Barney are married and have 4 dependent children. What is the total amount of their personal and dependency exemptions for 2011?

Susie is single, has salary income of $26,000, and $6,000 of itemized deductions. What is her taxable income? What is her income tax liability?

Below is a list of items that are found in the tax models. Use C to identify items only found in the corporate tax model; use I to identify those items only found in the individual tax model; use B to identify those items found in both models. -Taxable income

Below is a list of items that are found in the tax models. Use C to identify items only found in the corporate tax model; use I to identify those items only found in the individual tax model; use B to identify those items found in both models. -Cost of goods sold

Identify the following items with an R if it is a deduction For adjusted gross income. Identify with an M if it is a deduction From adjusted gross income. -Theft loss

Identify the following items with an R if it is a deduction For adjusted gross income. Identify with an M if it is a deduction From adjusted gross income. -Moving expenses

Hoku Corporation (a C corporation) had the following history of income and loss: Year Income (Loss) 2009 \ 40,000 2010 \ 70,000 2011 (\ 10,000) How much of a tax refund can Hoku Corporation receive by carrying back its 2011 loss?

Identify the following items with an R if it is a deduction For adjusted gross income. Identify with an M if it is a deduction From adjusted gross income. -Student loan interest

Below is a list of items that are found in the tax models. Use C to identify items only found in the corporate tax model; use I to identify those items only found in the individual tax model; use B to identify those items found in both models. -Adjusted gross income

Below is a list of items that are found in the tax models. Use C to identify items only found in the corporate tax model; use I to identify those items only found in the individual tax model; use B to identify those items found in both models. -Gross income tax liability

Below is a list of items that are found in the tax models. Use C to identify items only found in the corporate tax model; use I to identify those items only found in the individual tax model; use B to identify those items found in both models. -Standard deduction

What is the gain or loss on the sale of an asset for $68,000 if the asset cost $185,000, depreciation expense deducted was $124,000, and there was a $19,000 major addition to the asset?

Janis purchased an asset for $40,000. During the five years she owned the asset she deducted $30,000 of depreciation expense and spent $5,000 on a major improvement. Determine Janis's gain or loss on the sale of the asset for: a. $19,000; b. $8,000

Below is a list of items that are found in the tax models. Use C to identify items only found in the corporate tax model; use I to identify those items only found in the individual tax model; use B to identify those items found in both models. -Tax credits

Sara is single and has no dependents. What is the total amount of her standard deduction and personal exemption for 2011?

Identify the following items with an R if it is a deduction For adjusted gross income. Identify with an M if it is a deduction From adjusted gross income. -Charitable contribution

Identify the following items with an R if it is a deduction For adjusted gross income. Identify with an M if it is a deduction From adjusted gross income. -Health savings account contribution