Question 1

Regarding the Tax Tables applicable 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 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 given.

Question 2

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

Accepted Answer

It makes a great deal of difference if t

Question 3

Match the statements that relate to each other.Note: Choice l.may be used more than once.
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.d.Considered for dependency exemption 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.
-$1,050

Accepted Answer

The answer of Match the statements that relate to each...

Question 4

Match the statements that relate to each other.Note: Choice l.may be used more than once.
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.d.Considered for dependency exemption 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.
-Kiddie tax does not apply

Accepted Answer

The answer of Match the statements that relate to each...

Question 5

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 6

When the kiddie tax applies and the parents are divorced,the applicable parent (for determining the parental tax) is the one with the greater taxable income.

Accepted Answer

A) True 
 B)False

Question 7

Regarding dependency exemptions, classify each statement in one of the four categories:
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 stepdaughter who does not live with taxpayer.

Accepted Answer

The answer of Regarding dependency exemptions, classify each statement in...

Question 8

Roy and Linda were divorced in 2014.The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents.If Roy furnished more than half of their support,he can claim them as dependents in 2015.

Accepted Answer

A) True 
 B)False

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

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

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

When the kiddie tax applies and the parents are divorced,the applicable parent (for determining the parental tax) is the one with the greater taxable income.

Roy and Linda were divorced in 2014.The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents.If Roy furnished more than half of their support,he can claim them as dependents in 2015.

An Introduction to Taxation and Understanding the 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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxabl

Property Transactions: Capital Gains and Losses, section 1231 and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 3: Computing the Tax

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

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

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

When the kiddie tax applies and the parents are divorced,the applicable parent (for determining the parental tax) is the one with the greater taxable income.

Roy and Linda were divorced in 2014.The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents.If Roy furnished more than half of their support,he can claim them as dependents in 2015.

An Introduction to Taxation and Understanding the 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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxabl

Property Transactions: Capital Gains and Losses, section 1231 and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters