Question 1

The filing status of a taxpayer (e.g., single, head of household) must be identified before taxable income is determined.

Accepted Answer

A) True 
 B)False

Question 2

After Carolyn moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $500.The $500 is income to Carolyn.

Accepted Answer

A) True 
 B)False

Question 3

Pedro is married to Consuela, who lives with him.Both are U.S.citizens and residents of Nebraska.Pedro furnishes all of the support of his parents, who are citizens and residents of Mexico.He also furnishes all of the support of Consuela's parents, who are citizens and residents of El Salvador.Consuela has no gross income for the year.If Pedro files as a married person filing separately, how many personal and dependency exemptions can he claim on his return?

Accepted Answer

Four.A personal exemption for Pedro and

Question 4

In 2012, Pierre had the following transactions:   Pierre's AGI is:

Accepted Answer

A) $83,000. 
B) $94,000. 
C) $98,000. 
D) $103,000. 
E) $114,000. 
A) $83,000. 
B) $94,000. 
C) $98,000. 
D) $103,000. 
E) $114,000.

Question 5

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 6

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son.During 2012, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks.Merle's taxable income is:

Accepted Answer

A) $4,000 - $950 - $2,900 = $150. 
B) $4,000 - $2,900 = $1,100. 
C) $4,000 - $950 - $1,450 = $1,600. 
D) $8,800 - $950 - $2,900 = $4,950. 
E) None of the above. 
A) $4,000 - $950 - $2,900 = $150. 
B) $4,000 - $2,900 = $1,100. 
C) $4,000 - $950 - $1,450 = $1,600. 
D) $8,800 - $950 - $2,900 = $4,950. 
E) None of the above.

Question 7

DeWayne is a U.S.citizen and resident.He spends much of each year in the United Kingdom on business.He is married to Petula, a U.K.citizen and resident of London.DeWayne has heard that it is possible that he can file a joint income tax return for U.S.purposes.If this is so, what are the constraints he should consider in making any such decision?

Accepted Answer

The election to file a joint return has

Question 8

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 9

A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.

Accepted Answer

A) True 
 B)False

Question 10

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

Accepted Answer

A) True 
 B)False

The filing status of a taxpayer (e.g., single, head of household) must be identified before taxable income is determined.

After Carolyn moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $500.The $500 is income to Carolyn.

In 2012, Pierre had the following transactions: Pierre's AGI is:

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.

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son.During 2012, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks.Merle's taxable income is:

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

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

Exam 3: Computing the Tax

The filing status of a taxpayer (e.g., single, head of household) must be identified before taxable income is determined.

After Carolyn moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $500.The $500 is income to Carolyn.

In 2012, Pierre had the following transactions: Pierre's AGI is:

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.

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son.During 2012, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks.Merle's taxable income is:

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

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