Question 1

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

Accepted Answer

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

Question 2

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 3

Derek,age 46,is a surviving spouse.If he has itemized deductions of $12,900 for 2017,Derek should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 4

For dependents who have income,special filing requirements apply.

Accepted Answer

A) True 
 B)False

Question 5

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 6

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.
-Additional standard deduction

Accepted Answer

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

Question 7

Howard,age 82,dies on January 2,2017.On Howard's final income tax return,the full amount of the basic and additional standard deductions will be allowed even though Howard lived for only 2 days during the year.

Accepted Answer

A) True 
 B)False

Question 8

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes.
a.​If the Harpers file a joint return for 2017, can they later switch to separate returns for 2017?
b.If the Harpers file separate returns for 2017, can they later switch to a joint return for 2017?

Accepted Answer

The answer of Jayden and Chloe Harper are husband and...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The kiddie tax does not apply to a child whose earned income is more than one-half of his or her support.

Accepted Answer

A) True 
 B)False

Question 11

Homer (age 68) and his wife Jean (age 70) file a joint return.They furnish all of the support of Luther (Homer's 90-year old father),who lives with them.In 2017,they received $6,000 of interest income on city of Chicago bonds and interest income on corporate bonds of $48,000.Compute Homer and Jean's taxable income for 2017.

Accepted Answer

$20,650.Their gross income is $48,000 si

Question 12

Match the statements that relate to each other.
a.Available to a 70-year-old father claimed as a dependent by his son.
b.Equal to tax liability divided by taxable income.
c.The highest income tax rate applicable to a taxpayer.
d.Not eligible for the standard deduction.
e.No one qualified taxpayer meets the support test.
f.Taxpayer's ex-husband does not qualify.
g.A dependent child (age 18) who has only unearned income.
h.Highest applicable rate is 39.6%.
i.Applicable rate could be as low as 0%.
j.Maximum rate is 28%.
k.Income from foreign sources is not subject to tax.
l.No correct match provided.
-Nonresident alien

Accepted Answer

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

Question 13

In which,if any,of the following situations will the kiddie tax not apply?

Accepted Answer

A) The child is married but does not file a joint return. 
B) The child has unearned income of $2,100 or less. 
C) The child has unearned income that exceeds more than half of his (or her) support. 
D) The child is under age 24 and a full-time student. 
E) None of these. 
A) The child is married but does not file a joint return. 
B) The child has unearned income of $2,100 or less. 
C) The child has unearned income that exceeds more than half of his (or her) support. 
D) The child is under age 24 and a full-time student. 
E) None of these.

Question 14

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 15

Millie,age 80,is supported during the current year as follows:
During the year,Millie lives in an assisted living facility.Under a multiple support agreement,indicate which parties can qualify to claim Millie as a dependent.

Accepted Answer

A) Weston and Faith. 
B) Faith. 
C) Weston, Faith, Jake, and Brayden. 
D) Faith, Jake, and Brayden. 
E) None of these. 
A) Weston and Faith. 
B) Faith. 
C) Weston, Faith, Jake, and Brayden. 
D) Faith, Jake, and Brayden. 
E) None of these.

Question 16

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

Question 17

List at least three exceptions to the application of the kiddie tax.

Accepted Answer

​
∙ Unearned income of $2,100 or less.
∙

Question 18

Regarding the rules applicable to filing of income tax returns,which,if any,of the following is an incorrect statement:

Accepted Answer

A) Married persons who file joint returns cannot later (after the due date of the return) substitute separate returns. 
B) Married persons who file separate returns can later (after the due date of the return) substitute a joint return. 
C) The usual test as to when a taxpayer must file a return is based on the total of the following: personal exemption + basic standard deduction + both additional standard deductions. 
D) Special filing requirement rules exist for taxpayers who are claimed as dependents of another. 
E) None of these. 
A) Married persons who file joint returns cannot later (after the due date of the return) substitute separate returns. 
B) Married persons who file separate returns can later (after the due date of the return) substitute a joint return. 
C) The usual test as to when a taxpayer must file a return is based on the total of the following: personal exemption + basic standard deduction + both additional standard deductions. 
D) Special filing requirement rules exist for taxpayers who are claimed as dependents of another. 
E) None of these.

Question 19

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 20

Match the statements that relate to each other.
a.Available to a 70-year-old father claimed as a dependent by his son.
b.Equal to tax liability divided by taxable income.
c.The highest income tax rate applicable to a taxpayer.
d.Not eligible for the standard deduction.
e.No one qualified taxpayer meets the support test.
f.Taxpayer's ex-husband does not qualify.
g.A dependent child (age 18) who has only unearned income.
h.Highest applicable rate is 39.6%.
i.Applicable rate could be as low as 0%.
j.Maximum rate is 28%.
k.Income from foreign sources is not subject to tax.
l.No correct match provided.
-Additional standard deduction

Accepted Answer

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

Exam 3: Computing the Tax

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

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

Derek,age 46,is a surviving spouse.If he has itemized deductions of $12,900 for 2017,Derek should not claim the standard deduction.

For dependents who have income,special filing requirements apply.

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

Howard,age 82,dies on January 2,2017.On Howard's final income tax return,the full amount of the basic and additional standard deductions will be allowed even though Howard lived for only 2 days during the year.

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes. a.​If the Harpers file a joint return for 2017, can they later switch to separate returns for 2017? b.If the Harpers file separate returns for 2017, can they later switch to a joint return for 2017?

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

The kiddie tax does not apply to a child whose earned income is more than one-half of his or her support.

In which,if any,of the following situations will the kiddie tax not apply?

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

Millie,age 80,is supported during the current year as follows: During the year,Millie lives in an assisted living facility.Under a multiple support agreement,indicate which parties can qualify to claim Millie as a dependent.

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

List at least three exceptions to the application of the kiddie tax.

Regarding the rules applicable to filing of income tax returns,which,if any,of the following is an incorrect statement:

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

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

Property Transactions, capital Gains and Losses, sec1231, and 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 Reorganization

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes. a.If the Harpers file a joint return for 2017, can they later switch to separate returns for 2017? b.If the Harpers file separate returns for 2017, can they later switch to a joint return for 2017?