Question 1

Chris,a single taxpayer,had the following income and deductions during 2014:
   Calculate Chris's tax liability due or refund for 2014.

Accepted Answer

@#IMG-DLM& Tax $5,081.25 + .25(39,350 -

Question 2

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

Accepted Answer

A) $6,250. 
B) $8,750. 
C) $16,250. 
D) $18,750. 
A) $6,250. 
B) $8,750. 
C) $16,250. 
D) $18,750.

Question 3

Larry and Ally are married and file a joint return.They are considering purchasing a personal residence that will generate two deductions: $10,000 in home mortgage interest and $8,000 in real estate taxes.Their marginal tax rate is 25%.What is the total tax savings if Larry and Ally purchase the residence?

Accepted Answer

($10,000 +

Question 4

Which of the following is not an objective of the federal income tax law?

Accepted Answer

A) Stimulate private investment. 
B) Reduce employment. 
C) Encourage research and development activities. 
D) Prevent taxpayers from paying a higher percentage of their income in personal income taxes due to inflation. 
A) Stimulate private investment. 
B) Reduce employment. 
C) Encourage research and development activities. 
D) Prevent taxpayers from paying a higher percentage of their income in personal income taxes due to inflation.

Question 5

Paul makes the following property transfers in the current year:   The total of Paul's taxable gifts,assuming he does not elect gift splitting with his spouse,subject to the unified transfer tax is

Accepted Answer

A) $206,000. 
B) $214,000. 
C) $234,000. 
D) $279,000. 
A) $206,000. 
B) $214,000. 
C) $234,000. 
D) $279,000.

Question 6

AB Partnership earns $500,000 in the current year.Partners A and B are equal partners who do not receive any distributions during the year.How much income does partner A report from the partnership?

Accepted Answer

A) $0 
B) $250,000 
C) $500,000 
D) None of the above. 
A) $0 
B) $250,000 
C) $500,000 
D) None of the above.

Question 7

Latashia reports $100,000 of gross income on her 2014 tax return,filed April 15,2015.She omits $30,000 of income,but the error was not fraudulent.When does the statute of limitations for examining her tax return expire?

Accepted Answer

A) April 15,2017 
B) April 15,2018 
C) April 15,2021 
D) It never expires. 
A) April 15,2017 
B) April 15,2018 
C) April 15,2021 
D) It never expires.

Question 8

All states impose a state income tax which is generally based on an individual's federal adjusted gross income (AGI)with minor adjustments.

Accepted Answer

A) True 
 B)False

Question 9

Describe the nondeductible penalties imposed upon taxpayers for failure to comply.

Accepted Answer

a.A penalty of 5% per month subject to a

Question 10

The unified transfer tax system,comprised of the gift and estate taxes,is based upon the total property transfers an individual makes during lifetime and at death.

Accepted Answer

A) True 
 B)False

Question 11

Property transferred to the decedent's spouse is exempt from the estate tax because of the estate tax marital deduction provision.

Accepted Answer

A) True 
 B)False

Question 12

Generally,tax legislation is introduced first in the Senate and referred to the Senate Finance Committee.

Accepted Answer

A) True 
 B)False

Question 13

The largest source of revenues for the federal government comes from

Accepted Answer

A) individual income taxes. 
B) corporate income taxes. 
C) Social Security and Medicare taxes (FIC
A) . 
D) estate and gift taxes. 
A) individual income taxes. 
B) corporate income taxes. 
C) Social Security and Medicare taxes (FIC
A) . 
D) estate and gift taxes.

Question 14

Shaquille buys new cars for five of his friends.Each car cost $70,000.What is the amount of Shaquille's taxable gifts?

Accepted Answer

A) $0 
B) $280,000 
C) $336,000 
D) $350,000 
A) $0 
B) $280,000 
C) $336,000 
D) $350,000

Question 15

Charlotte pays $16,000 in tax deductible property taxes.Charlotte's marginal tax rate is 28%,effective tax rate is 22% and average rate is 25%.Charlotte's tax savings from paying the property tax is

Accepted Answer

A) $3,520. 
B) $4,000. 
C) $4,480. 
D) $11,520. 
A) $3,520. 
B) $4,000. 
C) $4,480. 
D) $11,520.

Question 16

The term "tax law" includes

Accepted Answer

A) Internal Revenue Code. 
B) Treasury Regulations. 
C) judicial decisions. 
D) all of the above. 
A) Internal Revenue Code. 
B) Treasury Regulations. 
C) judicial decisions. 
D) all of the above.

Question 17

Gifts made during a taxpayer's lifetime may affect the amount of estate tax paid by the taxpayer's estate.

Accepted Answer

A) True 
 B)False

Question 18

Vincent makes the following gifts during 2014:
$15,000 cash gift to wife
Gift of automobile valued at $35,000 to his adult son
Gift of golf clubs valued at $5,000 to a friend
$10,000 contribution to church
Although he is married,none of the gifts are considered joint gifts with his wife.What are the total taxable gifts subject to the unified transfer tax?

Accepted Answer

$0 (no transfer tax on gift to spouse)+

Question 19

When property is transferred,the gift tax is based on

Accepted Answer

A) replacement cost of the transferred property. 
B) fair market value on the date of transfer. 
C) the transferor's original cost of the transferred property. 
D) the transferor's depreciated cost of the transferred property. 
A) replacement cost of the transferred property. 
B) fair market value on the date of transfer. 
C) the transferor's original cost of the transferred property. 
D) the transferor's depreciated cost of the transferred property.

Question 20

Helen,who is single,is considering purchasing a residence that will provide a $28,000 tax deduction for property taxes and mortgage interest.If her marginal tax rate is 25% and her effective tax rate is 20%,what is the amount of Helen's tax savings from purchasing the residence?

Accepted Answer

A) $5,600 
B) $7,000 
C) $21,000 
D) $22,400 
A) $5,600 
B) $7,000 
C) $21,000 
D) $22,400

Exam 2 an Introduction to Taxation

Chris,a single taxpayer,had the following income and deductions during 2014: Calculate Chris's tax liability due or refund for 2014.

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

Which of the following is not an objective of the federal income tax law?

Paul makes the following property transfers in the current year: The total of Paul's taxable gifts,assuming he does not elect gift splitting with his spouse,subject to the unified transfer tax is

AB Partnership earns $500,000 in the current year.Partners A and B are equal partners who do not receive any distributions during the year.How much income does partner A report from the partnership?

Latashia reports $100,000 of gross income on her 2014 tax return,filed April 15,2015.She omits $30,000 of income,but the error was not fraudulent.When does the statute of limitations for examining her tax return expire?

All states impose a state income tax which is generally based on an individual's federal adjusted gross income (AGI)with minor adjustments.

Describe the nondeductible penalties imposed upon taxpayers for failure to comply.

The unified transfer tax system,comprised of the gift and estate taxes,is based upon the total property transfers an individual makes during lifetime and at death.

Property transferred to the decedent's spouse is exempt from the estate tax because of the estate tax marital deduction provision.

Generally,tax legislation is introduced first in the Senate and referred to the Senate Finance Committee.

The largest source of revenues for the federal government comes from

Shaquille buys new cars for five of his friends.Each car cost $70,000.What is the amount of Shaquille's taxable gifts?

Charlotte pays $16,000 in tax deductible property taxes.Charlotte's marginal tax rate is 28%,effective tax rate is 22% and average rate is 25%.Charlotte's tax savings from paying the property tax is

The term "tax law" includes

Gifts made during a taxpayer's lifetime may affect the amount of estate tax paid by the taxpayer's estate.

When property is transferred,the gift tax is based on

Helen,who is single,is considering purchasing a residence that will provide a $28,000 tax deduction for property taxes and mortgage interest.If her marginal tax rate is 25% and her effective tax rate is 20%,what is the amount of Helen's tax savings from purchasing the residence?

Tax Research

Corporate Formations and Capital Structure

I: Determination of Tax

The Corporate Income Tax

Gross Income: Inclusions

Corporate Nonliquidating Distributions

Gross Income: Exclusions

Other Corporate Tax Levies

Property Transactions: Capital Gains and Losses

Corporate Liquidating Distributions

Deductions and Losses

Corporate Acquisitions and Reorganizations

Itemized Deductions

Consolidated Tax Returns

Losses and Bad Debts

Partnership Formation and Operation

Employee Expenses and Deferred Compensation

Special Partnership Issues

Depreciation cost Recovery amortization and Depletion

S Corporations

Accounting Periods and Methods

The Gift Tax

Property Transactions: Nontaxable Exchanges

The Estate Tax

Property Transactions: Section 1231 and Recapture

Income Taxation of Trusts and Estates

Special Tax Computation Methods, tax Credits, and Payment of Tax

Administrative Procedures

Filters