Question 1

For dependents who have income, special filing requirements apply.

Accepted Answer

A) True 
 B)False

Question 2

During 2017, Jackson had the following capital gains and losses:
​
   
a.How much is Jackson's tax liability if he is in the 15% tax bracket?
b.If his tax bracket is 33% (not 15%)?

Accepted Answer

The answer of During 2017, Jackson had the following capital...

Question 3

Match the statements that relate to each other. Note: Some choices 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.
-Scholarship funds for tuition

Accepted Answer

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

Question 4

During 2017, Sarah had the following transactions: Sarah'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 5

Edgar had the following transactions for 2017:
What is Edgar's AGI for 2017?

Accepted Answer

$150,000. $80,000 (salary) - $4,000 (ali

Question 6

In early 2017, Ben sold a yacht, held for 9 months and for pleasure, for a $5,000 gain. Concerned about offsetting the gain before year-end, Ben is considering selling one of the following-each of which would yield a $5,000 loss:
∙ Houseboat used for recreation.
∙ Truck used in business.
∙ Stock investment held for 13 months.
Evaluate each choice.

Accepted Answer

The sale of the houseboat produces no be

Question 7

Married taxpayers who file a joint return cannot later (i.e., after the filing due date) switch to separate returns for that year.

Accepted Answer

A) True 
 B)False

Question 8

A child who has unearned income of $2,100 or less cannot be subject to the kiddie tax.

Accepted Answer

A) True 
 B)False

Question 9

Which, if any, of the following is a correct statement relating to the kiddie tax?

Accepted Answer

A) If the parents are divorced, the income of the noncustodial parent is used to determine the allocable parental tax. 
B) The components for the application of the kiddie tax are not subject to adjustment for inflation. 
C) If the kiddie tax applies, the parents must include the income of the child on their own income tax return. 
D) The kiddie tax does not apply if both parents of the child are deceased. 
E) None of these. 
A) If the parents are divorced, the income of the noncustodial parent is used to determine the allocable parental tax. 
B) The components for the application of the kiddie tax are not subject to adjustment for inflation. 
C) If the kiddie tax applies, the parents must include the income of the child on their own income tax return. 
D) The kiddie tax does not apply if both parents of the child are deceased. 
E) None of these.

Question 10

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 daughter who does not live with taxpayer.

Accepted Answer

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

Question 11

In 2017, Cindy had the following transactions: Cindy'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 12

During 2017, Lisa (age 66) furnished more than 50% of the support of the following persons: Presuming all other dependency tests are met, on a separate return how many personal and dependency exemptions may Lisa claim?

Accepted Answer

A) Two 
B) Three 
C) Four 
D) Five 
E) None of these 
A) Two 
B) Three 
C) Four 
D) Five 
E) None of these

Question 13

Benjamin, age 16, is claimed as a dependent by his parents. During 2017, he earned $850 at a car wash. Benjamin's standard deduction is $1,400 ($1,050 + $350).

Accepted Answer

A) True 
 B)False

Question 14

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2017, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma's taxable income is:

Accepted Answer

A) $700. 
B) $900. 
C) $1,750. 
D) $2,250. 
E) None of these. 
A) $700. 
B) $900. 
C) $1,750. 
D) $2,250. 
E) None of these.

Question 15

The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

Accepted Answer

A) True 
 B)False

Question 16

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea. Kim can claim his parents as dependents.

Accepted Answer

A) True 
 B)False

Question 17

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

Accepted Answer

A) True 
 B)False

Question 18

Lena is 66 years of age, single, and blind and is not claimed as a dependent. How much gross income must she have before she is required to file a Federal income tax return for 2017?

Accepted Answer

$11,950. $6,350 (basic standard deductio

Question 19

If an individual does not spend funds that have been received from another source (e.g., interest on municipal bonds), the unexpended amounts are not considered for purposes of the support test.

Accepted Answer

A) True 
 B)False

Question 20

The Deweys are expecting to save on their taxes for 2017. Not only have both incurred large medical expenses, but both reached age 65. During the year, they also recognized a $30,000 loss on some land they sold which was purchased as an investment several years ago. Are the Deweys under a mistaken understanding regarding their tax position? Explain.

Accepted Answer

The Deweys are expecting to qualify for

For dependents who have income, special filing requirements apply.

During 2017, Jackson had the following capital gains and losses: a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)?

During 2017, Sarah had the following transactions: Sarah's AGI is:

Edgar had the following transactions for 2017: What is Edgar's AGI for 2017?

Married taxpayers who file a joint return cannot later (i.e., after the filing due date) switch to separate returns for that year.

A child who has unearned income of $2,100 or less cannot be subject to the kiddie tax.

Which, if any, of the following is a correct statement relating to the kiddie tax?

In 2017, Cindy had the following transactions: Cindy's AGI is:

During 2017, Lisa (age 66) furnished more than 50% of the support of the following persons: Presuming all other dependency tests are met, on a separate return how many personal and dependency exemptions may Lisa claim?

Benjamin, age 16, is claimed as a dependent by his parents. During 2017, he earned $850 at a car wash. Benjamin's standard deduction is $1,400 ($1,050 + $350).

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2017, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma's taxable income is:

The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea. Kim can claim his parents as dependents.

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

Lena is 66 years of age, single, and blind and is not claimed as a dependent. How much gross income must she have before she is required to file a Federal income tax return for 2017?

If an individual does not spend funds that have been received from another source (e.g., interest on municipal bonds), the unexpended amounts are not considered for purposes of the support test.

An Introduction to Taxation and Understanding 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 Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 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

For dependents who have income, special filing requirements apply.

During 2017, Jackson had the following capital gains and losses: ​ a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)?

During 2017, Sarah had the following transactions: Sarah's AGI is:

Edgar had the following transactions for 2017: What is Edgar's AGI for 2017?

Married taxpayers who file a joint return cannot later (i.e., after the filing due date) switch to separate returns for that year.

A child who has unearned income of $2,100 or less cannot be subject to the kiddie tax.

Which, if any, of the following is a correct statement relating to the kiddie tax?

In 2017, Cindy had the following transactions: Cindy's AGI is:

During 2017, Lisa (age 66) furnished more than 50% of the support of the following persons: Presuming all other dependency tests are met, on a separate return how many personal and dependency exemptions may Lisa claim?

Benjamin, age 16, is claimed as a dependent by his parents. During 2017, he earned $850 at a car wash. Benjamin's standard deduction is $1,400 ($1,050 + $350).

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2017, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma's taxable income is:

The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea. Kim can claim his parents as dependents.

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

Lena is 66 years of age, single, and blind and is not claimed as a dependent. How much gross income must she have before she is required to file a Federal income tax return for 2017?

If an individual does not spend funds that have been received from another source (e.g., interest on municipal bonds), the unexpended amounts are not considered for purposes of the support test.

An Introduction to Taxation and Understanding 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 Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

During 2017, Jackson had the following capital gains and losses: a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)?