Question 1

Once a child reaches age 19, the kiddie tax no longer applies.

Accepted Answer

A) True 
 B)False

Question 2

When the kiddie tax applies, the child need not file an income tax return because the child's income will be reported on the parents' return.

Accepted Answer

A) True 
 B)False

Question 3

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

Accepted Answer

A) True 
 B)False

Question 4

Clara, age 68, claims head of household filing status.If she has itemized deductions of $9,500 for 2012, she should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 5

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 2012?

Accepted Answer

$11,200.$5,950 (basic standard

Question 6

Which, if any, of the statements regarding the standard deduction is correct?

Accepted Answer

A) Some taxpayers may qualify for two types of standard deductions. 
B) Not available to taxpayers who choose to deduct their personal and dependency exemptions. 
C) Not available to taxpayers who choose to claim their deduction for AGI. 
D) The basic standard deduction is indexed for inflation but the additional standard deduction is not. 
E) None of the above. 
A) Some taxpayers may qualify for two types of standard deductions. 
B) Not available to taxpayers who choose to deduct their personal and dependency exemptions. 
C) Not available to taxpayers who choose to claim their deduction for AGI. 
D) The basic standard deduction is indexed for inflation but the additional standard deduction is not. 
E) None of the above.

Question 7

Sylvia, age 17, is claimed by her parents as a dependent.During 2012, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Sylvia's taxable income is:

Accepted Answer

A) $4,200 - $4,500 = $0. 
B) $6,200 - $5,700 = $500. 
C) $6,200 - $4,500 = $1,700. 
D) $6,200 - $950 = $5,250. 
E) None of the above. 
A) $4,200 - $4,500 = $0. 
B) $6,200 - $5,700 = $500. 
C) $6,200 - $4,500 = $1,700. 
D) $6,200 - $950 = $5,250. 
E) None of the above.

Question 8

Perry is in the 33% tax bracket.During 2012, he had the following capital asset transactions:   Perry's tax consequences from these gains are as follows:

Accepted Answer

A) (15% ´ $30,000) + (33% ´ $4,000). 
B) (15% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
C) (0% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
D) (15% ´ $40,000) + (33% ´ $4,000). 
E) None of the above. 
A) (15% ´ $30,000) + (33% ´ $4,000). 
B) (15% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
C) (0% ´ $10,000) + (28% ´ $30,000) + (33% ´ $4,000). 
D) (15% ´ $40,000) + (33% ´ $4,000). 
E) None of the above.

Question 9

During 2012, Addison has the following gains and losses:

Accepted Answer

The answer of During 2012, Addison has the following gains...

Question 10

For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

Accepted Answer

A) True 
 B)False

Question 11

Using borrowed funds from a mortgage on her home, Leah provides 52% of her own support, while her sons furnished the rest.Leah cannot be claimed as a dependent under a multiple support agreement.

Accepted Answer

A) True 
 B)False

Question 12

Under the income tax formula, a taxpayer must choose between deductions from AGI and the standard deduction.

Accepted Answer

A) True 
 B)False

Question 13

In order to claim a dependency exemption for other than a qualifying child, a taxpayer must meet the support test.Generally, this is done by furnishing more than 50% of a dependent's support.What exceptions exist, if any, where the support furnished need not be more than 50%?

Accepted Answer

One exception involves the multiple supp

Question 14

During 2012, Madison had salary income of $80,000 and the following capital transactions:
   How are these transactions handled for income tax purposes?

Accepted Answer

Combining the long-term transactions yie

Question 15

In 2012, Ed is 66 and single.If he has itemized deductions of $7,300, he should claim the standard deduction alternative.

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

The Hutters filed a joint return for 2012.They provide more than 50% of the support of Carla, Melvin, and Aaron.Carla (age 18) is a cousin and earns $5,000 from a part-time job.Melvin (age 25) is their son and is a full-time law student.He received from the university a $3,800 scholarship for tuition.Aaron is a brother who is a citizen of Israel but resides in France.Carla and Melvin live with the Hutters.How many personal and dependency exemptions can the Hutters claim on their Federal income tax return?

Accepted Answer

A) Two. 
B) Three. 
C) Four. 
D) Five. 
E) None of the above. 
A) Two. 
B) Three. 
C) Four. 
D) Five. 
E) None of the above.

Question 18

Nelda is married to Chad, who abandoned her in early June of 2012.She has not seen or communicated with him since then. She maintains a household in which she and her two dependent children live.Which of the following statements about Nelda's filing status in 2012 is correct?

Accepted Answer

A) Nelda can use the rates for single taxpayers. 
B) Nelda can file a joint return with Chad. 
C) Nelda can file as a surviving spouse. 
D) Nelda can file as a head of household. 
E) None of the above statements is appropriate. 
A) Nelda can use the rates for single taxpayers. 
B) Nelda can file a joint return with Chad. 
C) Nelda can file as a surviving spouse. 
D) Nelda can file as a head of household. 
E) None of the above statements is appropriate.

Question 19

Darren, age 20 and not disabled, earns $4,000 during 2012.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Accepted Answer

A) True 
 B)False

Question 20

Which, if any, of the following is a deduction for AGI?

Accepted Answer

A) State and local sales taxes. 
B) Interest on home mortgage. 
C) Charitable contributions. 
D) Unreimbursed moving expenses of an employee. 
E) None of the above. 
A) State and local sales taxes. 
B) Interest on home mortgage. 
C) Charitable contributions. 
D) Unreimbursed moving expenses of an employee. 
E) None of the above.

Exam 3: Computing the Tax

Once a child reaches age 19, the kiddie tax no longer applies.

When the kiddie tax applies, the child need not file an income tax return because the child's income will be reported on the parents' return.

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

Clara, age 68, claims head of household filing status.If she has itemized deductions of $9,500 for 2012, she should not claim the standard deduction.

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 2012?

Which, if any, of the statements regarding the standard deduction is correct?

Sylvia, age 17, is claimed by her parents as a dependent.During 2012, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Sylvia's taxable income is:

Perry is in the 33% tax bracket.During 2012, he had the following capital asset transactions: Perry's tax consequences from these gains are as follows:

During 2012, Addison has the following gains and losses:

For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

Using borrowed funds from a mortgage on her home, Leah provides 52% of her own support, while her sons furnished the rest.Leah cannot be claimed as a dependent under a multiple support agreement.

Under the income tax formula, a taxpayer must choose between deductions from AGI and the standard deduction.

In order to claim a dependency exemption for other than a qualifying child, a taxpayer must meet the support test.Generally, this is done by furnishing more than 50% of a dependent's support.What exceptions exist, if any, where the support furnished need not be more than 50%?

During 2012, Madison had salary income of $80,000 and the following capital transactions: How are these transactions handled for income tax purposes?

In 2012, Ed is 66 and single.If he has itemized deductions of $7,300, he should claim the standard deduction alternative.

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

Nelda is married to Chad, who abandoned her in early June of 2012.She has not seen or communicated with him since then. She maintains a household in which she and her two dependent children live.Which of the following statements about Nelda's filing status in 2012 is correct?

Darren, age 20 and not disabled, earns $4,000 during 2012.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Which, if any, of the following is a deduction for AGI?

An Introduction to Taxation and Understanding the 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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 1

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 2

Property Transactions: Capital Gains and Losses, 1231, 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

Income Taxation of Trusts and Estates

Filters