Question 1

During 2012,Leona had the following transactions:   Leona's AGI is:

Accepted Answer

A)  $185,000. 
B)  $187,000. 
C)  $285,000. 
D)  $287,000. 
E)  $385,000. 
A)  $185,000. 
B)  $187,000. 
C)  $285,000. 
D)  $287,000. 
E)  $385,000.

Question 2

A child who is married can be subject to the kiddie tax.

Accepted Answer

A) True 
 B)False

Question 3

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 4

In terms of income tax consequences,abandoned spouses are treated the same way as married persons filing separate returns.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

In terms of timing as to any one year,the Tax Tables are available before the Tax Rate Schedules.

Accepted Answer

A) True 
 B)False

Question 8

In determining the filing requirement based on gross income received,both additional standard deductions (i.e.,age and blindness)are taken into account.

Accepted Answer

A) True 
 B)False

Question 9

Heloise,age 74 and a widow,is claimed as a dependent by her daughter.For 2012,she had income as follows: $2,500 interest on municipal bonds; $3,200 Social Security benefits; $3,000 income from a part-time job; and $2,800 dividends on stock investments.What is Heloise's taxable income for 2012?

Accepted Answer

$1,050.$3,000 (income from job)+ $2,800

Question 10

For the current year,David has salary income of $80,000 and the following property transactions:   What is David's AGI for the current year?

Accepted Answer

A)  $76,000. 
B)  $77,000. 
C)  $78,000. 
D)  $89,000. 
E)  None of the above. 
A)  $76,000. 
B)  $77,000. 
C)  $78,000. 
D)  $89,000. 
E)  None of the above.

Question 11

In resolving qualified child status for dependency exemption purposes,why are tiebreaker rules necessary? Can these rules be waived?

Accepted Answer

A person being claimed as a de

Question 12

When married persons file a joint return,joint and several liability results.What does this mean?

Accepted Answer

Joint and several liability me

Question 13

Benjamin,age 16,is claimed as a dependent by his parents.During 2012,he earned $700 at a car wash.Benjamin's standard deduction is $1,250 ($950 + $300).

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

The additional standard deduction for age and blindness is not the same amount for single as for married taxpayers.

Accepted Answer

A) True 
 B)False

Question 17

After paying down the mortgage on their personal residence,the Hills have found that their itemized deductions for each year are always slightly less than the standard deduction option.

Accepted Answer

The answer of After paying down the mortgage on their...

Question 18

Keith,age 17 and single,earns $3,000 during 2012.Keith's parents cannot claim him as a dependent even if he does not live with them.

Accepted Answer

A) True 
 B)False

Question 19

In terms of the tax formula applicable to individual taxpayers,which,if any,of the following statements is correct?

Accepted Answer

A)  In arriving at AGI, a taxpayer must elect between claiming deductions for AGI and deductions from AGI. 
B)  In arriving at taxable income, a taxpayer must elect between claiming deductions for AGI and deductions from AGI. 
C)  If a taxpayer has deductions for AGI, the standard deduction is not available. 
D)  In arriving at taxable income, a taxpayer must elect between deductions for AGI and the standard deduction. 
E)  None of the above. 
A)  In arriving at AGI, a taxpayer must elect between claiming deductions for AGI and deductions from AGI. 
B)  In arriving at taxable income, a taxpayer must elect between claiming deductions for AGI and deductions from AGI. 
C)  If a taxpayer has deductions for AGI, the standard deduction is not available. 
D)  In arriving at taxable income, a taxpayer must elect between deductions for AGI and the standard deduction. 
E)  None of the above.

Question 20

Warren,age 17,is claimed as a dependent by his father.In 2012,Warren has dividend income of $1,500 and earns $400 from a part-time job.

Accepted Answer

The answer of Warren,age 17,is claimed as a dependent by...

During 2012,Leona had the following transactions: Leona's AGI is:

A child who is married can be subject to the kiddie tax.

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:

In terms of income tax consequences,abandoned spouses are treated the same way as married persons filing separate returns.

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

In terms of timing as to any one year,the Tax Tables are available before the Tax Rate Schedules.

In determining the filing requirement based on gross income received,both additional standard deductions (i.e.,age and blindness)are taken into account.

Heloise,age 74 and a widow,is claimed as a dependent by her daughter.For 2012,she had income as follows: $2,500 interest on municipal bonds; $3,200 Social Security benefits; $3,000 income from a part-time job; and $2,800 dividends on stock investments.What is Heloise's taxable income for 2012?

For the current year,David has salary income of $80,000 and the following property transactions: What is David's AGI for the current year?

In resolving qualified child status for dependency exemption purposes,why are tiebreaker rules necessary? Can these rules be waived?

When married persons file a joint return,joint and several liability results.What does this mean?

Benjamin,age 16,is claimed as a dependent by his parents.During 2012,he earned $700 at a car wash.Benjamin's standard deduction is $1,250 ($950 + $300).

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?

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.

The additional standard deduction for age and blindness is not the same amount for single as for married taxpayers.

After paying down the mortgage on their personal residence,the Hills have found that their itemized deductions for each year are always slightly less than the standard deduction option.

Keith,age 17 and single,earns $3,000 during 2012.Keith's parents cannot claim him as a dependent even if he does not live with them.

In terms of the tax formula applicable to individual taxpayers,which,if any,of the following statements is correct?

Warren,age 17,is claimed as a dependent by his father.In 2012,Warren has dividend income of $1,500 and earns $400 from a part-time job.

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

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: Section 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

During 2012,Leona had the following transactions: Leona's AGI is:

A child who is married can be subject to the kiddie tax.

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:

In terms of income tax consequences,abandoned spouses are treated the same way as married persons filing separate returns.

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

In terms of timing as to any one year,the Tax Tables are available before the Tax Rate Schedules.

In determining the filing requirement based on gross income received,both additional standard deductions (i.e.,age and blindness)are taken into account.

Heloise,age 74 and a widow,is claimed as a dependent by her daughter.For 2012,she had income as follows: $2,500 interest on municipal bonds; $3,200 Social Security benefits; $3,000 income from a part-time job; and $2,800 dividends on stock investments.What is Heloise's taxable income for 2012?

For the current year,David has salary income of $80,000 and the following property transactions: What is David's AGI for the current year?

In resolving qualified child status for dependency exemption purposes,why are tiebreaker rules necessary? Can these rules be waived?

When married persons file a joint return,joint and several liability results.What does this mean?

Benjamin,age 16,is claimed as a dependent by his parents.During 2012,he earned $700 at a car wash.Benjamin's standard deduction is $1,250 ($950 + $300).

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?

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.

The additional standard deduction for age and blindness is not the same amount for single as for married taxpayers.

After paying down the mortgage on their personal residence,the Hills have found that their itemized deductions for each year are always slightly less than the standard deduction option.

Keith,age 17 and single,earns $3,000 during 2012.Keith's parents cannot claim him as a dependent even if he does not live with them.

In terms of the tax formula applicable to individual taxpayers,which,if any,of the following statements is correct?

Warren,age 17,is claimed as a dependent by his father.In 2012,Warren has dividend income of $1,500 and earns $400 from a part-time job.

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

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: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters