Question 1

In 2017,Brett and Lashana (both 50 years old)file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is

Accepted Answer

A) $12,700. 
B) $13,950. 
C) $14,250. 
D) $7,900. 
A) $12,700. 
B) $13,950. 
C) $14,250. 
D) $7,900.

Question 2

To qualify as an abandoned spouse,the taxpayer is not required to

Accepted Answer

A) be a U.S.citizen or resident. 
B) live apart from the spouse for the last six months of the year. 
C) pay more than half the cost of maintaining the home. 
D) have a son or daughter in the home for the entire year. 
A) be a U.S.citizen or resident. 
B) live apart from the spouse for the last six months of the year. 
C) pay more than half the cost of maintaining the home. 
D) have a son or daughter in the home for the entire year.

Question 3

Paul and Sally file a joint return showing $87,000 of AGI.They have three dependent children ages 6,8,and 13.What is the amount of their child credit?

Accepted Answer

A) $0 
B) $1,000 
C) $2,000 
D) $3,000 
A) $0 
B) $1,000 
C) $2,000 
D) $3,000

Question 4

The only business entity that pays federal income taxes is the C corporation.

Accepted Answer

A) True 
 B)False

Question 5

Generally,deductions for (not from)adjusted gross income are personal expenses specifically allowed by tax law.

Accepted Answer

A) True 
 B)False

Question 6

In 2017 Carol and Robert have salaries of $35,000 and $27,000,respectively.Their itemized deductions total $8,000.They are married,under 65,and live in a common law state.
a.Compute their taxable income assuming that they file a joint return.
b.Compute their taxable income assuming that they file separate returns and that Robert claims all of the itemized deductions.

Accepted Answer

The answer of In 2017 Carol and Robert have salaries...

Question 7

For 2017,unearned income in excess of $2,100 of a child under age 18 is generally taxed at the parents' rate.

Accepted Answer

A) True 
 B)False

Question 8

Lila and Ted are married and have AGI of $340,000 in 2017.They had their first children this year,twins.Lila and Ted will be allowed a deduction for personal and dependency exemptions of

Accepted Answer

A) $8,100. 
B) $16,200. 
C) $12,636. 
D) $6,318. 
A) $8,100. 
B) $16,200. 
C) $12,636. 
D) $6,318.

Question 9

When a spouse dies,the surviving spouse for the year of death

Accepted Answer

A) may file a married filing jointly return. 
B) must file a tax return using the single filing status. 
C) must file a tax return using the head of household filing status. 
D) may file a married filing jointly return only if the death occurred in the last half of the year. 
A) may file a married filing jointly return. 
B) must file a tax return using the single filing status. 
C) must file a tax return using the head of household filing status. 
D) may file a married filing jointly return only if the death occurred in the last half of the year.

Question 10

All of the following items are included in gross income except

Accepted Answer

A) alimony received. 
B) rent income. 
C) interest earned on a bank account. 
D) child support payments received. 
A) alimony received. 
B) rent income. 
C) interest earned on a bank account. 
D) child support payments received.

Question 11

Taxable income for an individual is defined as

Accepted Answer

A) AGI reduced by itemized deductions. 
B) AGI reduced by personal and dependency exemptions. 
C) total income reduced by the standard deduction. 
D) AGI reduced by deductions from AGI and personal and dependency exemptions. 
A) AGI reduced by itemized deductions. 
B) AGI reduced by personal and dependency exemptions. 
C) total income reduced by the standard deduction. 
D) AGI reduced by deductions from AGI and personal and dependency exemptions.

Question 12

If an individual with a marginal tax rate of 25% has a long-term capital gain,it is taxed at

Accepted Answer

A) 0%. 
B) 20%. 
C) 25%. 
D) 15%. 
A) 0%. 
B) 20%. 
C) 25%. 
D) 15%.

Question 13

Kadeisha is single with no dependents and has a salary of $102,000 for 2017,along with tax exempt interest income of $3,000 from a municipality.Her itemized deductions total $6,100.
Required: Compute her taxable income.

Accepted Answer

The answer of Kadeisha is single with no dependents and...

Question 14

John supports Kevin,his cousin,who lived with him throughout 2017.John also supports three other individuals who do not live with him: Donna,who is John's mother
Melissa,who John's stepsister
Morris,who is Kevin's brother
Assume that Donna,Melissa,Morris and Kevin each earn less than $4,050.How many personal and dependency exemptions may John claim?

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 5 
A) 2 
B) 3 
C) 4 
D) 5

Question 15

All of the following items are deductions for adjusted gross income except

Accepted Answer

A) alimony paid. 
B) trade or business expenses. 
C) rent and royalty expenses. 
D) state and local income taxes. 
A) alimony paid. 
B) trade or business expenses. 
C) rent and royalty expenses. 
D) state and local income taxes.

Question 16

Taxpayers have the choice of claiming either the personal and dependency exemption or itemized deductions.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not considered support for the dependent support test?

Accepted Answer

A) food 
B) clothing 
C) rental value of lodging 
D) value of services rendered by the taxpayer for the dependent 
A) food 
B) clothing 
C) rental value of lodging 
D) value of services rendered by the taxpayer for the dependent

Question 18

Eliza Smith's father,Victor,lives with Eliza who is a single taxpayer.During the year,Eliza purchased clothing for her father costing $1,200 and provided him with a room that could have been rented for $6,000.In addition,Eliza spent $4,000 for groceries she shared with her father.Eliza purchased a new computer for $900 which she placed in the living room for both her father and her use.
What is the amount of support provided by Eliza to her father?

Accepted Answer

The answer of Eliza Smith's father,Victor,lives with Eliza who is...

Question 19

A child credit is a partially refundable credit.

Accepted Answer

A) True 
 B)False

Question 20

The child credit is for taxpayers with dependent children under the age of

Accepted Answer

A) 14. 
B) 17. 
C) 19. 
D) 24. 
A) 14. 
B) 17. 
C) 19. 
D) 24.

Exam 18: Determination of Tax

In 2017,Brett and Lashana (both 50 years old)file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is

To qualify as an abandoned spouse,the taxpayer is not required to

Paul and Sally file a joint return showing $87,000 of AGI.They have three dependent children ages 6,8,and 13.What is the amount of their child credit?

The only business entity that pays federal income taxes is the C corporation.

Generally,deductions for (not from)adjusted gross income are personal expenses specifically allowed by tax law.

For 2017,unearned income in excess of $2,100 of a child under age 18 is generally taxed at the parents' rate.

Lila and Ted are married and have AGI of $340,000 in 2017.They had their first children this year,twins.Lila and Ted will be allowed a deduction for personal and dependency exemptions of

When a spouse dies,the surviving spouse for the year of death

All of the following items are included in gross income except

Taxable income for an individual is defined as

If an individual with a marginal tax rate of 25% has a long-term capital gain,it is taxed at

Kadeisha is single with no dependents and has a salary of $102,000 for 2017,along with tax exempt interest income of $3,000 from a municipality.Her itemized deductions total $6,100. Required: Compute her taxable income.

All of the following items are deductions for adjusted gross income except

Taxpayers have the choice of claiming either the personal and dependency exemption or itemized deductions.

Which of the following is not considered support for the dependent support test?

A child credit is a partially refundable credit.

The child credit is for taxpayers with dependent children under the age of

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