Chapter 1 The Individual Income Tax Return

?1.?Which of the following is not a goal of the tax law??a.?Encouraging certain social goals such as contributions to charity.?b.?Encouraging certain economic goals such as a thriving business community.?c.?Encouraging smaller families.?d.?Raising revenue to operate the government.?e.?None of the above are goals of the tax law.ANSWER:??cPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-01 - LO:1-01NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RQJTQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJT-CO4D-EPTT-CEAD-QCTZ-COSU-QATA-CESS-GPMR-GOSU-RATW-GWSU-CCTZ-GO3U-RCBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE2.?Which one of the following provisions was passed by Congress to meet a social goal of the tax law??a.?The deduction for job hunting expenses.?b.?The charitable deduction.?c.?The moving expense deduction for adjusted gross income.?d.?The deduction for soil and water conservation costs available to farmers.?e.?None of the above.ANSWER:??bRATIONALE:??Deductions for job hunting expenses, moving expenses, and soil and water conservation costs for farmers are economic goals.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-01 - LO:1-01NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RQJOQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJT-GR5U-CPUD-CPTU-QA3S-CCSU-YP3Z-8YSS-E3JO-GOSU-K3UR-GCSU-1P31-GOHG-CC5G-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE3.?List two general objectives of the tax code.ANSWER:??The tax code promotes social goals, economic goals and raising revenue.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-01 - LO:1-01NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RQJZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ1-CC3D-QAUD-GR4D-ECTZ-COSS-EAMN-8RSU-QCMD-GOSU-CQJU-CASU-EPDD-8BOS-EQBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE4.?Mark a “Yes” to each of the following if it is an objective of the tax code. Otherwise mark with a “No.”a. To provide a car to each American.b. To promote giving to charities.c. To encourage taxpayers to send their children to college.d. To raise money to operate the government.e. To promote the use of solar energy.ANSWER:??a. Nob. Yesc. Yesd. Yese. YesPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-01 - LO:1-01NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RQJSQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ1-GY4S-EPMR-GH5D-YPMG-GOSS-RCB3-CRSS-EPDG-GOSU-O3DN-GRSU-Q3JO-GE5U-Y3DD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE5.?The US federal tax law's sole purpose is to raise revenue.??a.?True?b.?FalseANSWER:??FalseRATIONALE:??The tax law has many goals including raising revenue.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-01 - LO:1-01NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RQJIQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-COAU-YAJI-GH4U-N3B1-CRSS-EPUB-8RSS-EPTT-GOSU-QPTA-8RSS-KAJU-GA5G-NCB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE6.?Which of the following is not a goal of the tax law??a.??Ensuring that all persons pay the same amount of tax.?b.??Economic goals such as reduction in unemployment.?c.??Social goals such as lowering the cost of adoption.?d.??Raise adequate revenue to operate the government.ANSWER:??aRATIONALE:??Raising revenue, social and economic goals are all purposes of the tax law.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-01 - LO:1-01NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RQJWQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-CT1D-C3TI-GFOS-CCJ3-CASU-1PJS-CESS-RCTT-GOSS-KPDD-GESU-KPMB-CR5D-RA5B-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE7.?A corporation is a reporting entity but not a tax-paying entity.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??A corporation is subject to income tax and must report income annually.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTKNQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJZ-GW5S-GCTT-8F1G-KQDB-GOSU-QA3U-CESS-G3UR-GOSU-NPBS-GCSU-OAMR-8F1G-K3T1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE8.?Partnership capital gains and losses are allocated separately to each of the partners.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTKBQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ3-GP1S-CAUD-8R3D-1CBW-GOSU-KPDB-8RSU-CC3O-GOSU-GCBT-GCSU-CPDD-GT1S-CP33-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE9.?Wesley owns and operates the Cheshire Chicken Ranch as a sole proprietorship in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:?a.?Form 1040EZ?b.?Form 1040A?c.?Form 1040?d.?Form 1065?e.?None of the aboveANSWER:??cRATIONALE:??Self-employed taxpayers are not permitted to file using Form 1040-EZ of Form 1040A.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/27/2016 11:03 AMQUESTION?ID:??JFND-GO3A-GE4D-RTJ3QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GW5D-KCTW-GPOU-QC3O-CESS-KP5R-CESU-EPDF-GOSU-ECUD-CESS-RP3T-CJ1D-1ATU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE10.?Which of the following forms may be filed by individual taxpayers??a.?Form 1040?b.?Form 1041?c.?Form 1065?d.?Form 1120?e.?None of the aboveANSWER:??aRATIONALE:??Form 1041 is for trusts, Form 1065 is for partnerships, and Form 1120 is for corporations.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJAQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMD-G31U-CPJ3-GR4D-NP3U-GYSS-CPDR-CESS-RPBU-GOSU-KP5G-GASU-QC5G-CO5U-NP3O-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE11.?Partnerships:?a.?Are not taxable entities.?b.?Are taxed in the same manner as individuals.?c.?File tax returns on Form 1120.?d.?File tax returns on Form 1041.ANSWER:??aRATIONALE:??Partnerships are reporting entities but not taxable entities. The income flows through and is taxed to the partners.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTKGQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-GA4S-KCJI-CIUD-QA3W-CESS-GPT1-8RSU-QA5F-GOSU-KPBU-8RSU-KPJT-8Y4D-ECBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE12.?Which of the following is correct??a.?An individual is a reporting entity but not a taxable entity.?b.?A partnership is a taxable entity and a reporting entity.?c.?A corporation is a reporting entity but not a taxable entity.?d.?A partnership is a reporting entity but not a taxable entity.ANSWER:??dRATIONALE:??Individuals and corporations must report and are taxed; whereas partnerships only report but are not taxed (the partners are taxed on their share of the partnership's income, gains, deductions and losses).POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTKFQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJU-CJOS-RPMN-CP1D-KP5G-8RSU-GAMD-CRSU-RP5B-GOSS-GA3A-8RSU-QPJS-CWAU-YQB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE13.?Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:?a.?Salary income.?b.?Joint return status.?c.?Withholding on wages.?d.?Self-employment income.ANSWER:??dPOINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTKRQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-CR4U-GCDR-GTOS-CP5R-CWSU-OAT1-CRSU-NCMN-GOSU-OCJU-GYSS-RA3W-CAAD-E3JW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE14.?Partnership income is reported on:?a.?Form 1040PTR?b.?Form 1120S?c.?Form 1040X?d.?Form 1065ANSWER:??dPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTKDQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-CAAU-ECBS-GRHG-NATI-GESU-RP31-8YSU-YAMB-GOSS-C3BU-CCSU-KPT3-8YAD-YQDN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE15.?Amended individual returns are filed on:?a.?Form 1040X?b.?Form 1120S?c.?Form 1041?d.?Form 1040AmendANSWER:??aPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJUQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMD-GR3D-KPBT-GJ1D-KPBW-CRSU-GCDD-8RSU-R3UG-GOSS-GCBW-CASU-OCTT-CC5D-RPBS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE16.?Depending on the amounts of income and other tax information, some individuals may report their income on:?a.?Form 1040A?b.?Form 1065?c.?Form 1120?d.?Form 1041ANSWER:??aRATIONALE:??Depending on circumstances, an individual may file using Forms 1040-EZ, 1040A or 1040.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJ1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-COHU-1PJO-GCAS-KPBT-CESS-RQDR-CESU-G3J1-GOSU-KCMG-CWSU-ECDF-CI1G-GCDN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE17.?If an individual wishes to amend his individual tax return, he will make the amendment using what form??a.?Form 1040A?b.?Form 1040X?c.?Form 1120?d.?Schedule K-1?e.?None of the aboveANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJTQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-CWAD-QCB3-GH4S-KC33-CWSS-CCUN-CESU-K3BI-GOSU-NCT1-CASU-Q3J1-CJOS-C3DF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE18.?Mark each of the following as a taxable entity, a reporting entity, or both:a. Individualsb. Corporationsc. PartnershipsANSWER:??a. Taxable and reporting entityb. Taxable and reporting entityc. Reporting entityPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJOQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-8Y5U-ECJS-CEAG-KCDD-GHSS-C3J3-CESU-O3MR-GOSU-YCTO-CASU-RAMF-GAHG-NCJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE19.?List if a form is used for an individual, a corporation, or a partnership tax return.a. Form 1065b. Schedule A, Itemized Deductionsc. Form 1040d. Form 1120e. Schedule B, Interest and DividendsANSWER:??a. Partnershipb. Individualc. Individuald. Corporatione. IndividualPOINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJZ-8RAG-GAUF-GAHS-C3B1-CESU-EQJZ-8RSS-N3UG-GOSS-CAJZ-GHSS-CPJO-G3TS-KC5R-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE20.?Distinguish between reporting entities and taxable entities and give examples of each.ANSWER:??A partnership is an example of a reporting entity. It pays no tax, but must report partnership income or loss and the allocation of income or loss to partners. Individuals, corporations, estates, and certain trusts are examples of taxable entities whose income is subject to federal income taxation.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??EssayHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/27/2016 11:08 AMQUESTION?ID:??JFND-GO3A-GE4D-RTJSQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMG-GHAS-CQMG-GJ1U-13BT-CASU-RCUN-8RSU-GCTO-GOSU-KC3I-8YSS-EATU-COHG-RQDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE21.?Which of the following is not considered one of the five basic taxable or reporting entities???a.??Partnership?b.??Corporation?c.?Portfolio?d.??Individual?e.??TrustANSWER:??cRATIONALE:??A portfolio is not an entity.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-02 - LO:1-02NATIONAL?STANDARDS:??United States - BUSPORG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJIQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-GF1D-QQDN-GE4D-QQJT-CWSS-KCBO-CESU-KC5N-GOSU-1PUR-GWSU-GAUD-GW3D-Y3MB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE22.?Married taxpayers may double their standard deduction amount by filing separate returns.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??The standard deduction for married filing jointly is $12,600, and the standard deduction for married filing separately is $6,300 each.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTJWQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMF-GJ1U-K3BT-8F1S-E3UF-GRSU-OPMG-CRSS-CAJI-GOSU-1QBO-GYSS-NPMN-G7TS-RCB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE23.?An item is not included in gross income unless the tax law specifies that the item is subject to taxation.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??Gross income includes all income, unless the tax law provides for a specific exclusion.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RT1NQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-G7TU-N3UN-8Y4D-1CT3-CWSU-QPDG-8YSS-K3J1-GOSU-GPBO-8RSU-CA3T-GBOU-KQMR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE24.?For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RT1BQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-CAAS-RPBZ-G71D-13JT-GESS-KATW-CESU-1CTA-GOSS-GQMF-8RSS-C3JU-GJUD-RC5R-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE25.?Eugene and Velma are married. For 2016, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugene's itemized deductions are $11,200 so he is going to itemize. Velma's itemized deductions are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Velma's taxable income??a.?$19,700?b.?$20,400?c.?$21,950?d.?$26,000?e.?None of the aboveANSWER:??cRATIONALE:??($30,000 - $4,000 - $4,050). ?When married filing separately, if one spouse itemizes, then both spouses must itemize (same is true if using the standard deduction).?POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 1:57 AMQUESTION?ID:??JFND-GO3A-GE4D-RTT3QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJT-8B1D-GPDR-GA4U-1A33-GESS-NCDB-8YSS-EQDG-GOSS-GCJ1-GWSU-Y3T1-CTOU-13DF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE26.?An individual is a head of household. What is her standard deduction??a.?$6,300?b.?$9,300?c.?$12,600?d.?$14,800?e.?None of the aboveANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 1:54 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTAQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJT-CAAS-CPJS-GW5U-YCJW-CASU-YC5F-8RSS-RAJT-GOSU-QC3A-GYSS-KP5G-CPTU-CPDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE27.?Eugene and Velma are married. For 2016, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugene's itemized deductions are $11,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Eugene's taxable income??a.?$9,750?b.?$13,800?c.?$14,700?d.?$21,000?e.?None of the aboveANSWER:??aRATIONALE:??($25,000 - $11,200 - $4,050)POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 1:56 AMQUESTION?ID:??JFND-GO3A-GE4D-RT1GQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-8YHS-CCDG-CCAG-GQBW-GOSS-NPJO-8YSU-RQBS-GOSS-N3MN-GASU-GA3W-CC3D-C3MB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE28.?Oscar and Mary have no dependents and file a joint income tax return for 2016. They have adjusted gross income of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2016 income tax return??a.?$97,400?b.?$101,900?c.?$102,000?d.?$110,000?e.?$136,000ANSWER:??bRATIONALE:??($140,000 - $30,000 - $8,100) ?Two exemptions at $4,050 each.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 1:59 AMQUESTION?ID:??JFND-GO3A-GE4D-RT1FQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-C3TU-ECJZ-GO3S-G3DD-8YSU-1AJ3-8YSU-YQMF-GOSS-ECDD-GESU-KPT3-CRHS-NCBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE29.?Barry is age 45 and a single taxpayer. In 2016, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims one exemption on his 2016 income tax return, calculate the following amounts:a.His personal exemption amountb.Barry's taxable incomeANSWER:???a.$4,050b.$6,450?= $17,000 - $6,500 - $4,050POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:00 AMQUESTION?ID:??JFND-GO3A-GE4D-RT1RQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJU-8YAG-GPTT-CE4D-EQJ1-8YSU-K3UD-CESU-YCUN-GOSU-KAUD-GRSS-GAJZ-G31D-YPBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE30.?What is the formula for computing taxable income, as summarized in the text?ANSWER:??Gross income- Deductions for adjusted gross income?Adjusted gross income?- Greater of itemized deductions or standard deduction- Exemptions?Taxable income?POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RT1DQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ3-CC5D-QPBA-8BTU-E3B1-GHSU-YP5N-8YSS-NAUF-GOSU-NQJA-GESS-ECJU-GEAD-R3MB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE31.?Mary is age 33 and a single taxpayer with adjusted gross income for 2016 of $29,400. Mary maintains a home for three dependent children and has itemized deductions of $3,000. Calculate the following amounts for Mary's 2016 income tax return:a.The number of exemptions claimedb.Mary's standard or itemized deduction amountc.Mary's taxable incomeANSWER:???a.4b.$9,300c.$3,900?= $29,400 - $9,300 - $16,200POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:02 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTUQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GWAD-OA5D-CEAU-OAJU-GHSU-NAJO-CESU-KCDR-GOSU-KC3S-GWSU-OCB1-GH4D-OATZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE32.?Kenzie is a research scientist in Tallahassee, Florida. Her husband Gary stays home to take care of their two young children. Kenzie's total wages for 2016 were $60,500 from which $5,900 of federal income tax was withheld.?Calculate the income tax due or income tax refund on Kenzie and Gary's 2016 individual income tax return. Use the tax formula for individuals and show your work.ANSWER:??Gross income$60,500Deductions for adjusted gross income???????? ?0Adjusted gross income60,500Standard deduction(12,600)Personal exemptions (4)(16,200)Taxable income$31,700Gross tax liability (from tax table)$ 3,831Tax withheld?(5,900)Refund due$(2,069)POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:04 AMQUESTION?ID:??JFND-GO3A-GE4D-RTT1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-CWHG-GCJW-GO3D-QA3A-8YSU-1CUB-8RSU-Q3DR-GOSS-KQMG-8YSS-RAMG-GH5G-EP33-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE33.?Betty, age 39 and Steve, age 50, are married with two dependent children. They file a joint return for 2016. Their income from salaries totals $155,000; they receive $1,000 in taxable interest and $2,000 in royalties. Their deductions for adjusted gross income amount to $3,100; they have itemized deductions totaling $41,000. Calculate the following amounts:a.Gross incomeb.Adjusted gross incomec.Itemized deduction or standard deduction amountd.Deduction for exemptionse.Taxable incomef.Regular income tax liability from rate schedulesANSWER:???a.$158,000 = $155,000 + $1,000 + $2,000b.$154,900 = $158,000 - $3,100c.$41,000d.$16,200 = 4 × $4,050e.$97,700 = $154,900 - $41,000 - $16,200f.$15,974POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:06 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTTQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ3-CJ1S-R3DR-GR4U-1C5B-8RSS-RPTZ-CRSU-NQBI-GOSU-NA31-GCSU-R3UR-CA4U-13DF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE34.?Melissa is a 35-year-old single taxpayer with adjusted gross income of $49,600. She uses the standard deduction and has no dependents.a. Calculate Melissa’s 2016 taxable income. Please show your work.b. When you calculate Melissa’s tax liability, are you required to use the tax tables or the tax rate schedules, or does it matter?c. What is Melissa’s tax liability?ANSWER:??a. $39,250?= $49,600 - $6,300 -$4,050b. Taxpayers with income less than $100,000 must use the tax tables.c. $5,590POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:07 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTOQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GJ1D-KQB3-GR3U-O3TZ-GRSU-NP3W-CRSU-C3T3-GOSS-K3BW-GRSU-OAMN-CEHG-CC3A-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE35.?Steven, age 35 and single, is a commodities broker. His salary for 2016 is $111,500 and he has taxable interest income of $40,000. He has no deductions for adjusted gross income. His itemized deductions are $31,000. Steven does not have any dependents.a.What is the amount of his adjusted gross income?b.What are his allowable itemized deductions?c.What is his deduction for personal exemptions?d.What is his taxable income?e.What is his regular tax liability from the tax rate schedules?ANSWER:??a.$151,500 = $111,500 + $40,000b.$31,000c.$4,050d.$116,450?= $151,500 - $31,000 - $4,050e.$25,642.75?[tax rate schedule: ($116,450 x 28%) - $6,963.25]POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:09 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJU-GO4S-N3JA-GW4S-K3JZ-CESU-QCUD-8RSU-1PUR-GOSS-GA5F-GYSU-CA3Z-GWAS-EAUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE36.?Nathan is 24 years old, single, and works as an accountant in a salmon cannery in Alaska. His total wages for 2016 were $32,000. Federal income tax of $4,500 was withheld from his wages. His only other income was $260 of interest and he had no deductible expenses.?Calculate the income tax due or income tax refund on Nathan's 2016 individual income tax return. Use the tax formula for individuals and show your work.ANSWER:??Gross income$32,260Deductions for adjusted gross income?? ?????? 0Adjusted gross income32,260Standard deduction(6,300)Personal exemption? (4,050)Taxable income$21,910Gross tax liability (from tax table)$ 2,825?Tax withheld?(4,500)Refund due$(1,675)POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/27/2016 11:09 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTSQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GO4D-YPMG-CI1D-CPJA-CCSS-R3DD-8YSS-EP3A-GOSU-EQDN-GCSS-CPDG-COAG-NQDN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE37.?In 2016, Len has a salary of $40,700 from his job. He also has interest income of $400. Len is single and has no dependents. During the year, Len sold stock held as an investment for a $10,000 loss. Calculate the following amounts for Len:a.Adjusted gross incomeb.Standard deductionc.Exemptiond.Taxable incomee.Tax liabilityf.Explain the tax treatment of the loss from the stock sale.ANSWER:???a.$38,100 = $40,700 + $400 - $3,000b.$6,300c.$4,050d.$27,750 = $38,100 - $6,300 - $4,050e.$3,703 (tax table)f.Up to $3,000 of net capital loss per year can be deducted from ordinary income; the unused portion of $7,000 is carried forward.POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:12 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTIQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GHHU-ECTI-GPUG-RC31-GASU-OPJA-CRSU-CCMR-GOSS-KC3T-GHSU-OPTO-CITG-GATZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE38.?Roger, age 39, and Lucy, age 37, are married taxpayers who file a joint income tax return for 2016. They have gross income of $26,100. Their deductions for adjusted gross income are $550 and they have itemized deductions of $5,400. If Roger and Lucy claim two personal exemptions and no dependency exemptions for 2016, calculate the following amounts:a.Their adjusted gross incomeb.The greater of the amount of their standard deduction or their itemized deductionsc.Their taxable incomeANSWER:???a.$25,550 = $26,100 - $550b.$12,600c.$4,850 = $25,550 - $12,600 - $8,100POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:14 AMQUESTION?ID:??JFND-GO3A-GE4D-RTTWQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GY5G-ECMD-G7TS-NC5F-GASS-CA5F-8YSS-KPJ1-GOSS-E3TA-8YSS-EATT-GR5S-CPT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE39.?Hansel and Gretel are married taxpayers who file a joint income tax return for 2016. They have no dependents. On their 2016 income tax return, they have adjusted gross income of $62,000 and total itemized deductions of $4,000. What is their taxable income?ANSWER:??$41,300 = $62,000 - $12,600 - $8,100POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:14 AMQUESTION?ID:??JFND-GO3A-GE4D-RO4NQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-CR3U-GC33-CC4U-Y3UB-CASU-13MD-8RSS-KQMB-GOSU-NCBI-GYSS-GC3A-GP1D-KC5D-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE40.?Rod, age 50, and Ann, age 49, are married taxpayers who file a joint return for 2016. They have gross income of $150,700. Their deductions for adjusted gross income are $5,100 and they have itemized deductions of $12,000, consisting of $7,000 in state income taxes and $5,000 in mortgage interest expense. If they claim two personal exemptions and no dependency exemptions for 2016, calculate the following amounts:?a. Their adjusted gross incomeb. The greater of the amount of their standard deduction or their itemized deductionsc. Their taxable incomeANSWER:??a. $145,600 = $150,700 - $5,100b. $12,600c. $124,900 = $145,600 - $12,600 - $8,100POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionNOTES:??Additional tables, rates, or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/21/2016 2:15 AMQUESTION?ID:??JFND-GO3A-GE4D-RO4BQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-GITG-KPJI-CC5D-CPBS-CCSU-NQBS-8RSU-CCTU-GOSS-EAJA-8RSS-NAUF-CO4D-GPJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE41.?Theodore, age 74, and Maureen, age 59, are married taxpayers with two dependents. Their adjusted gross income for the 2016 tax year is $43,600, and they have itemized deductions of $7,800. Determine the following for Theodore and Maureen's 2016 income tax return:a.The number of exemptionsb.The greater of the amount of their standard deduction or their itemized deductionsc.Their taxable incomeANSWER:???a.4b.$13,850 = $12,600 + $1,250c.$13,550 = $43,600 - $13,850 - $16,200POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 12:51 AMQUESTION?ID:??JFND-GO3A-GE4D-RO33QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-CRHD-GQJA-CAAD-QCTS-CASS-KATO-CESS-EQJW-GOSU-KPTU-8RSS-NCMG-GA4S-GCJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE42.?George, age 67, and Linda, age 60, are married taxpayers with three dependent children. Their adjusted gross income for the 2016 tax year is $142,000. They have itemized deductions of $24,000. Determine the following for their joint tax return for 2016:a.The number of exemptionsb.Exemption deduction amountc.The greater of the amount of their standard deduction or their itemized deductionsd.Taxable incomeANSWER:???a.5b.$20,250 =?5 x $4,050c.$24,000d.$97,750 = $142,000 - $24,000 - $20,250POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-06 - LO:1-06ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionNOTES:??Additional tables, rates, or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 12:53 AMQUESTION?ID:??JFND-GO3A-GE4D-RO3AQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ3-GOAU-EAMD-CIUD-QP5N-CESU-QCTT-8RSS-C3T1-GOSU-Y3JA-GHSS-ECDG-GC3D-R3MD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE43.?What is the difference between the standard deduction and itemized deductions?ANSWER:??The standard deduction is a flat amount, varying based on a taxpayer’s filing status (single, married, head of household, etc.), age, and vision, which is deducted from adjusted gross income (AGI) along with a taxpayer’s exemptions to arrive at taxable income.?Itemized deductions are expenses paid by a taxpayer including medical expenses (over the 10 percent of AGI limit), various taxes, home mortgage interest and investment interest, charitable contributions, personal casualty losses and miscellaneous deductions (over the 2 percent of AGI limit). If the total itemized deductions are larger than the taxpayer’s standard deduction, the taxpayer should complete Schedule A, listing all itemized deductions, and use this amount instead of the standard deduction. By itemizing deductions when they are larger than the standard deduction, taxpayers may reduce their taxable income and pay less tax.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??EssayHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-03 - LO:1-03ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RO4GQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMD-8Y5U-1A3I-GH4D-K3BT-GCSS-ECJ1-8RSS-KCUR-GOSU-KPT3-CASU-GQBI-CW3U-GQJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE44.?For each of the following situations, indicate whether the taxpayer(s) is(are) required to file a tax return for 2016. Explain your answer.?a.?Debra, age 68, and Jerry, age 70, are married and file a joint return. They received $24,000 in interest income from a savings account.b.Margie is a single taxpayer with wages in 2015 of $8,400 and interest income of $200.c.?Janie, age 30, and Scott, age 28, are married and file a joint tax return. They had $17,000 in earnings from wages.d.?Kim, age 20, is a single college student who is claimed as a dependent by her parents. She earned $2,000 from a part-time job and has $450 in interest income.e.?Stefanie, a 25-year-old single taxpayer, has wages of $1,500, from which $80 of federal income tax was withheld.ANSWER:??a.?Yes. The standard deduction of $12,600 plus $8,100 in personal exemptions plus 2 additional standard deductions of $1,250 each add up to $23,200, less than the income of $24,000.b.?No. Income of $8,600 is less than the sum of the $4,050 personal exemption plus the $6,300 standard deduction.c.?No. The income of $17,000 is less than the sum of the $8,100 personal exemptions plus the $12,600 standard deduction.d.?Yes. Gross income is more than the larger of $1,050 or $2,350 (earned income of $2,000 plus $350).e.?No. Stefanie is not required to file a tax return, but she must file if she wishes to receive a refund of the income tax withheld.POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 12:55 AMQUESTION?ID:??JFND-GO3A-GE4D-RO4FQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJU-CO3D-Y3JS-CE5D-O3JT-CWSU-EQJW-CESU-NPJZ-GOSS-RAUN-GASS-N3B3-CCAD-RQBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE45.?A taxpayer with self-employment income of $600 must file a tax return.?a.?True?b.?FalseANSWER:??TrueRATIONALE:??Net self-employment income of at least $400 require filing a tax return.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RO4RQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-GW4D-OAJU-COHD-G3B1-GRSU-QP31-CRSU-13BU-GOSS-KPMB-GESS-GP3S-GI1G-GPUN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE46.?A dependent child with earned income in excess of the available standard deduction amount must file a tax return.?a.?True?b.?FalseANSWER:??TrueRATIONALE:??A single dependent child (under 65) is required to file if unearned income is over $1,050 OR earned income is over $6,300 (which is the standard deduction amount) OR if gross income is more than the larger of $1,050 or earned income up to $5,950 + $350.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RO4DQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJZ-GE4U-OAUG-CRHU-GPT3-GOSS-N3JZ-8YSS-R3TS-GOSU-YQJT-8RSS-RPB1-GA3S-KP3I-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE47.?A single taxpayer, who is not a dependent on another’s return, not blind and under age 65, with income of $8,750 must file a tax return.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??A single taxpayer, who is not a dependent on another’s return, not blind and under age 65, with income of at least $10,350?must file a tax return.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:20 AMQUESTION?ID:??JFND-GO3A-GE4D-RO3UQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ1-8RAS-KPJS-GR3D-O3J3-CESU-N3T1-CRSS-NCUB-GOSS-KPJT-GRSS-NA3A-GR3U-NQBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE48.?If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??Whether or not a taxpayer is required to file a tax return, the taxpayer must file a return in order to obtain a refund.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RO31QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-GR4U-E3UN-CT1S-CP31-GOSU-R3JI-CRSS-GA33-GOSU-KPUG-GASU-ECJW-8RAD-1AJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE49.?Taxpayers with self-employment income of $400 or more must file a tax return.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RO3TQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMN-GI1D-RCJT-GB1G-CCUN-GWSS-R3JI-8RSS-E3TU-GOSU-YPBT-CWSU-O3BW-GIUD-Y3TT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE50.?Which of the following taxpayers does not have to file a tax return for 2016??a.?A single taxpayer who is under age 65, with income of $10,500.?b.?Married taxpayers (ages 45 and 50 years), filing jointly, with income of $21,000.?c.?A student, age 22, with unearned income of $1,200 who is claimed as a dependent by her parents.?d.?A qualifying widow (age 67) with a dependent child and income of $14,500.?e.?All of the above.ANSWER:??dRATIONALE:??a. Income is above the filing threshold of $10,350 b. Income is above the filing threshold of $20,700 c. Unearned income exceeds $1,050POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:29 AMQUESTION?ID:??JFND-GO3A-GE4D-RO3OQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ1-8Y3D-EP33-CJTD-YQBU-GWSU-Y3MR-CRSS-GATI-GOSU-KCDB-GCSU-GCJI-CRHS-KQBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE51.?In which of the following situations is the taxpayer not required to file a 2016 income tax return??a.?When an individual has a current year income tax refund and would like to obtain it.?b.?When the taxpayer is a single 67-year-old with wages of $9,800.?c.?When the taxpayer is a 35-year-old head of household with wages of $16,800.?d.?When the taxpayer is a 69-year-old widow (spouse died 3 years ago) with wages of $16,500 and no dependents.?e.?When the taxpayers are a married couple with both spouses under 65 years old with wages of $23,000.ANSWER:??bRATIONALE:??a. A return must be filed to obtain a refund b. Income is below the filing threshold of $10,350 c. Income is above the filing threshold of $13,350 d. Income is above the filing threshold of $11,900 e. Income is above the filing threshold of $20,700POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/27/2016 11:17 AMQUESTION?ID:??JFND-GO3A-GE4D-RO3ZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-CJ1U-OCJW-CR4G-RCTU-GCSS-EPBO-8RSU-1C3U-GOSU-N3J3-GYSU-OQBO-CPTU-GAJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE52.?All of the following factors are important in determining whether an individual is required to file an income tax return, except:?a.?The taxpayer's filing status.?b.?The taxpayer's gross income.?c.?The taxpayer's total itemized deductions.?d.?The availability of the additional standard deduction for taxpayers who are elderly.?e.?None of the above.ANSWER:??cPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RO3SQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-GF1G-NAUG-GB1S-GPT1-GRSS-C3BU-CESS-G3BW-GOSU-KP5N-GRSU-GAMF-GITU-1CUF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE53.?Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2016 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2016??Why?ANSWER:??Yes. Monica must file a return and pay Social Security and Medicare taxes on the unreported tips.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-04 - LO:1-04NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:43 AMQUESTION?ID:??JFND-GO3A-GE4D-RO3IQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMG-8RHS-EC33-CE4D-GAMB-CRSU-1PJS-8YSU-1ATA-GOSU-NC3O-8RSU-RPJA-CEAD-Q3J3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE54.?John, 45 years old and unmarried, contributed $1,000 monthly in 2016 to the support of his parents' household. The parents lived alone and their income for 2016 consisted of $500 from dividends and interest. What is John's filing status and how many exemptions should he claim on his 2016 tax return??a.?Single and 1 exemption?b.?Head of household and 1 exemption?c.?Single and 3 exemptions?d.?Head of household and 3 exemptions?e.?None of the aboveANSWER:??dRATIONALE:??Unlike other dependents, parents are not required to live with the children to claim Head of Household.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:44 AMQUESTION?ID:??JFND-GO3A-GE4D-RO3WQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-CR5G-KAJS-8YHD-GQBU-GASU-YPMB-8YSS-CP3T-GOSU-QPB1-8RSU-RPDG-C3TS-KPMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE55.?During 2016, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2016, and how many exemptions should he claim on his tax return??a.?Head of household and 2 exemptions?b.?Single and 2 exemptions?c.?Head of household and 1 exemption?d.?Single and 1 exemption?e.?None of the aboveANSWER:??aRATIONALE:??Unlike other dependents, parents are not required to live with their children to claim Head of Household.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:45 AMQUESTION?ID:??JFND-GO3A-GE4D-RTNNQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJU-CW5D-EAJS-CT1D-CQJ1-CRSS-NAMF-CRSU-QPTI-GOSS-GCJU-CCSS-GQJT-CFOU-QPJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE56.?Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment.a. Can she claim him as a dependent?b. Can she claim head of household filing status? Why or why not?ANSWER:??a. Yes, her son qualifies as a dependent.b. No. Her son must live in the same household with Jeri in order for Jeri to be able to file as head of household.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTNBQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-8Y3U-KCTZ-8YAG-E3MB-GWSU-1C5G-8YSU-NPTU-GOSU-YCJI-CESU-GAJW-CW4D-R3J3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE57.?If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??In the year of one spouse’s death, the spouses are considered married for the full year.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTB3QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-CPUD-KA3W-CR4D-NCTT-CRSS-RQDR-8YSU-CP31-GOSU-QAJ3-GYSS-NP31-COHS-KCBS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE58.?Taxpayers who do not qualify for married, head of household, or qualifying widow or widower filing status must file as single.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTBAQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-CA4D-1CUF-CE5D-OCMR-GCSS-RPTT-CRSU-CCTA-GOSU-E3J3-CWSU-1CBT-8R4G-G3UD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE59.?If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew, who is not her dependent, she may use the head of household filing status.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??In order to qualify for head of household status, the nephew must be a dependent.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTNGQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-8RHU-QPJA-C3UD-NCUR-GESS-GPTW-8YSU-O3JT-GOSU-NP3U-GESU-EA5N-8R4S-GQJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE60.?The maximum official individual income tax rate for 2016 is 39.6 percent, not including the Medicare surtax on net investment income.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:46 AMQUESTION?ID:??JFND-GO3A-GE4D-RTNFQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GC4U-1PTA-GJUG-CCJO-CASS-N3UR-CESU-N3B1-GOSU-1CMB-CESU-KCMD-CO5U-CCBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE61.?All taxpayers may use the tax rate schedule to determine their tax liability.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??Taxpayers with taxable income of less than $100,000 must use the tax tables to determine their tax liability.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTNRQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-CJ1U-KC3O-CI1D-NPJU-GYSU-CCB1-CESU-OCBT-GOSU-RAUN-CWSU-NC31-CO5U-E3DD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE62.?The head of household tax rates are higher than the rates for a single taxpayer.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??Head of household tax rates are lower than tax rates for single taxpayers.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTNDQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-CC4D-YCJA-GAHD-GQJU-GCSU-OPMN-8YSU-KQJI-GOSS-RA5B-GHSU-R3BI-GFTG-GA3W-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE63.?Most states are community property states.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??Only nine states are community property states.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTBUQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GTTG-CPUN-GYHU-OAJS-8RSU-NQBZ-CRSU-R3UF-GOSU-Q3JU-8RSS-NCJZ-GIOS-EP3A-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE64.?If taxpayers are married and living together at the end of the year, they must file a joint tax return.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??Married taxpayers may choose to file as married filing jointly or as married filing separately.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTB1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-CIOU-NATS-CW4U-GC5F-GWSU-QC5N-CRSU-CATI-GOSU-NQBU-CWSU-YAMF-CEHD-GAUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE65.?A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??In order to file as head of household, a taxpayer must pay more than half of the cost of keeping a home that was the principal residence of a dependent child or other qualifying dependent relative.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTBTQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMG-G7TU-NAMD-GBOS-N3JZ-GESS-KC3Z-CESU-R3TT-GOSU-KCDR-GYSU-13JS-GA5U-1CTS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE66.?A married person with a dependent child may choose to file as head of household if it reduces his or her tax liability.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??In order to file as head of household, the taxpayer must be unmarried or meet the definition of abandoned spouse.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTBOQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJS-8YAG-GQMF-GBTS-CPMN-GASS-RPBW-8YSU-GAMD-GOSS-C3T3-GESU-KCJ1-GH3S-GQB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE67.?A taxpayer who is living alone and is legally separated from his or her spouse under a separate maintenance decree at year-end should file as single.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTBZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJZ-GW5U-O3BS-CC5D-ECBU-GHSU-QA3U-8RSU-RCMB-GOSU-CAT3-8YSS-GCBO-GF1G-NPT1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE68.?John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,200 of wages from a part-time job at the college book store. What is Ann's filing status for 2016??a.?Single?b.?Head of household?c.?Married, filing separately?d.?Qualifying widow(er)?e.?None of the aboveANSWER:??aRATIONALE:??Because John's income exceeds $4,050, he does not qualify as a dependent.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:47 AMQUESTION?ID:??JFND-GO3A-GE4D-RTBSQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-GH4S-KAJ3-CI1D-YP3A-GCSU-Q3J3-CESU-C3DR-GOSU-OAT3-CASU-GAJO-GR3D-QAUD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE69.?Robert is a single taxpayer who has AGI of $145,000 in 2016; his taxable income is $122,000. What is his federal tax liability for 2016??a.?$12,600.00?b.?$27,196.75?c.?$27,231.25?d.?$33,671.25?e.?$34,160.00ANSWER:??bRATIONALE:??($122,000 X 28%) - $6,963.25 = $27,196.75POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:51 AMQUESTION?ID:??JFND-GO3A-GE4D-RTBIQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMG-8F1D-1QJS-GPTS-G3JT-CCSU-K3BW-8YSU-EC5B-GOSU-QQBS-CASU-R3TO-CIUD-Y3JW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE70.?William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return??a.?Head of household?b.?Married, filing separately?c.?Single?d.?Qualifying widow(er)?e.?None of the aboveANSWER:??aPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RTBWQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-GC4U-NPDG-8FOU-KP5B-GYSS-N3BO-8YSU-YQJI-GOSU-GA5B-GOSS-KCJI-8R3G-G3BT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE71.?Irma, widowed in 2015, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2016??a.?Single?b.?Married, filing separate?c.?Head of household?d.?Qualifying widow(er)?e.?None of the aboveANSWER:??aRATIONALE:??Head of household and qualifying widow(er) require her son to be a dependent.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/27/2016 11:19 AMQUESTION?ID:??JFND-GO3A-GE4D-RC1NQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-8RAU-KCUD-GYAD-CC5F-GOSU-K3MN-8YSU-1CT3-GOSU-GA5G-GASU-K3BA-GT1D-OATW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE72.?Alan, whose wife died in 2014, filed a joint tax return for 2014. He did not remarry and continues to maintain his home in which his four dependent children live. In the preparation of his tax return for 2016, Alan should file as:?a.?Single?b.?Qualifying widow(er)?c.?Head of household?d.?Married, filing separately?e.?None of the aboveANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:53 AMQUESTION?ID:??JFND-GO3A-GE4D-RC1BQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-GH5U-KQDG-CEHU-GPTZ-CESU-EC5B-CRSU-R3JZ-GOSS-KP3U-8RSU-NCJ3-GOHU-KC5N-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE73.?During 2016, Howard maintained his home in which he and his 16 year-old son resided. The son qualifies as his dependent. Howard's wife died in 2015. What is his filing status for 2016??a.?Single?b.?Head of household?c.?Married, filing separately?d.?Qualifying widow(er)?e.?None of the above.ANSWER:??dPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:54 AMQUESTION?ID:??JFND-GO3A-GE4D-RCT3QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJS-CR5U-K3TS-GC5D-QP5F-GRSS-E3JO-8YSU-OC31-GOSS-GPDN-GRSU-NPMN-GTTU-OC5G-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE74.?An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:?a.?Single?b.?Head of household?c.?Qualifying widow(er)?d.?Married, filing separately?e.?None of the aboveANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCTAQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ3-CCHG-NPMF-8YHU-EC5G-GRSU-RPTA-CESS-CC5R-GOSS-NCBT-GASU-NCT1-CO5D-QQJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE75.?Norman and Linda are married taxpayers with taxable income of $126,000 in 2016.a. When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter?b. What is their tax liability?ANSWER:??a. Taxpayers with incomes of $100,000 or more must use the tax rate schedules.b. Tax liability: $23,042.50 = ($126,000 x 25%) - $8,457.50POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:55 AMQUESTION?ID:??JFND-GO3A-GE4D-RC1GQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJU-CE5G-G3UN-GP1S-K3BZ-8RSU-YPBU-8RSS-K3TS-GOSU-KPJ1-GCSU-OCTT-GT1S-K3UG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE76.?Curt and Linda were married on December 31 of the prior year. What are their options for filing status for their prior year taxes?ANSWER:??They may file either as married filing joint or married filing separately. Even though they were married on the last day of the year, they must file as if they were married for the full year.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 1:56 AMQUESTION?ID:??JFND-GO3A-GE4D-RC1FQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GH3U-E3JA-GH4D-1QDB-CRSU-CAMG-CESS-GQJT-GOSU-GAMD-CCSS-KPBI-CF1D-RA5N-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE77.?Madeline is single and supports her 85-year-old parents who live in a senior home paid for by Madeline and have no income. What is Madeline’s filing status and why?ANSWER:??Head of household. Madeline is single and Madeline’s parents meet the tests to qualify as her dependents. Parents are the only exception to the requirement that dependents must live in the same household as the taxpayer to qualify the taxpayer for head of household status.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC1RQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMF-GE5D-ECBA-GJOS-NCJS-CESU-RQDG-8YSS-KPJW-GOSS-R3UB-CWSS-EPMB-GHAG-ECJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE78.?List each alternative filing status available to unmarried individual taxpayers.ANSWER:??Single.Head of household.Qualifying widow(er).POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC1DQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GC4D-RAJA-GF1G-RPT3-CASU-YPDF-CESS-EC5N-GOSS-GCTT-GESS-RQBI-C3TS-CPJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE79.?Determine from the tax table or the tax rate schedule, whichever is appropriate, the amount of the income tax for each of the following taxpayers for 2016.Taxpayer(s)Filing StatusTaxable IncomeIncome TaxMacintoshSingle$ 35,680?HindmarshMFS$ 62,100?KinneyMFJ$ 142,000??RosenthalH of H$ 91,350?WilkSingle$ 21,130?ANSWER:??Macintosh, $4,888?(tax table)Hindmarsh, $11,303?(tax table)Kinney, $27,042.50 [tax rate schedule: ($142,000 x 25%) - $8,457.50Rosenthal, $17,141?(tax table)Wilk, $2,705?(tax table)POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionNOTES:??Additional tables, rates or other schedules may be required to assist the student in completing this test question.DATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:02 AMQUESTION?ID:??JFND-GO3A-GE4D-RCTUQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJT-GE4D-GQJI-GYHS-N3MB-8YSU-K3DG-CESU-GATU-GOSU-1CBI-CWSU-NPMG-CW5U-1AUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEEMatch the letter of the filing status to the taxpayers below. Items may be used more than once.a.?Singleb.?Married filing a joint returnc.?Married filing separate returnsd.?Head of householde.?Qualifying widow(er)f.?Married filing joint or married filing separateDIFFICULTY:??ModerateQUESTION?TYPE:??MatchingHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-05 - LO:1-05NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/27/2016 11:24 AMQUESTION?ID:??JFND-GO3A-GE4D-RCT180.?The taxpayer’s husband died last year. Her 13 year-old dependent daughter lives with her.ANSWER:??ePOINTS:??1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GH5G-KCDG-8FTG-KC5F-GHSS-K3DN-8YSU-OAJS-GOSU-KA5D-GWSS-KPMR-CT1U-CQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE81.?The unmarried taxpayer supports his dependent mother, who lives next door in a separate apartment.ANSWER:??dPOINTS:??1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GH5G-KCDG-8FTG-KC5F-GHSS-K3DN-8YSU-OAJS-GOSU-KA5D-GWSS-KPMR-CT1U-CQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBER82.?The taxpayer is married, but her husband disappeared with a girlfriend while on vacation in March of the current year. The taxpayer has no dependents.ANSWER:??cPOINTS:??1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GH5G-KCDG-8FTG-KC5F-GHSS-K3DN-8YSU-OAJS-GOSU-KA5D-GWSS-KPMR-CT1U-CQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNB8R83.?The taxpayer is unmarried and is living with his girlfriend.ANSWER:??aPOINTS:??1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GH5G-KCDG-8FTG-KC5F-GHSS-K3DN-8YSU-OAJS-GOSU-KA5D-GWSS-KPMR-CT1U-CQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNB8Y84.?After living together for 6 months, the couple married December 31.ANSWER:??fPOINTS:??1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GH5G-KCDG-8FTG-KC5F-GHSS-K3DN-8YSU-OAJS-GOSU-KA5D-GWSS-KPMR-CT1U-CQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEA85.?The taxpayer who is unmarried legally adopted a child who lives with her.ANSWER:??dPOINTS:??1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GH5G-KCDG-8FTG-KC5F-GHSS-K3DN-8YSU-OAJS-GOSU-KA5D-GWSS-KPMR-CT1U-CQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEW86.?An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student for purposes of determining whether a dependency exemption is permitted.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCTTQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMB-GAHD-1C31-GW3S-NQDG-GRSS-ECTA-8RSS-RCBZ-GOSU-Y3DR-GRSS-KCDB-CT1D-E3DR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE87.?A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCTOQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-CR3U-RP3S-GIOU-Y3TW-CWSU-OPBO-CRSU-NCUD-GOSS-NCBU-GASS-G3BZ-GTTU-OAT1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE88.?For 2016, personal and dependency exemptions are $4,000 each.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??In 2016, the exemption mount is $4,050POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:03 AMQUESTION?ID:??JFND-GO3A-GE4D-RCTZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GH3U-YQMN-G3OS-EQBI-GRSS-EC5F-8RSU-RQMF-GOSU-R3BT-CESS-KPMR-GAHS-RCJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE89.?Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCTSQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJT-G71G-E3TO-8R3D-EA3Z-CASU-RP3S-CRSU-G3B1-GOSU-Q3BO-CCSU-KPTU-8YHD-CP31-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE90.?The two types of exemptions are the personal exemption and the dependency exemption.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCTIQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMN-GFTD-Y3BT-CO3G-NAMD-GOSS-C3TO-CRSU-CCTT-GOSS-CC3S-CASU-EP3A-GH5D-G3TI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE91.?A child for whom a dependency exemption is claimed on the parents' tax return may also claim a personal exemption on his or her own tax return.?a.?True?b.?FalseANSWER:??FalseRATIONALE:??If a child is claimed as a dependent on the parent’s tax return, then the child is not allowed to claim a personal exemption on his/her own tax return.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCTWQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-8FOU-1P3Z-GY3D-NQJW-GASU-OQJ3-CESS-KP3U-GOSS-GC3U-GESS-EAMN-CFTD-OQBS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE92.?During 2016, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages:Dudley8 percentCarlton45 percentIsidore47 percent?Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists??a.?Dudley?b.?Dudley or Carlton?c.?Carlton or Isidore?d.?Dudley, Carlton, or Isidore?e.?None of the aboveANSWER:??cRATIONALE:??If a dependent is supported by two or more and a multiple support agreement is filed, any one member of the support group with over 10% support may claim to support the dependent.POINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:04 AMQUESTION?ID:??JFND-GO3A-GE4D-RC4NQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ3-CEAU-EQDN-GOAD-CAJI-CWSS-RPDN-8RSS-CA33-GOSU-QCDD-CRSU-RC3S-GAAD-GCMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE93.?Ronald is 92 years old and in poor health. Clever investing earlier in his life has left him with a sizeable income. He is able to support his son Ed. Ed is 67 years old and a bit "confused," so he lives in a nursing home. Ed’s income is less than $2,000. How many exemptions should Ronald claim on his tax return??a.?1?b.?2?c.?3?d.?4?e.?None of the aboveANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC4BQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-C3TG-CP3S-CAHD-QAMD-GCSU-NAJT-8YSU-NP5G-GOSS-GPJT-CRSS-RAMG-GO3D-CPT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE94.?Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption??a.?The relative must receive less than $4,050 of gross income in order to qualify.?b.?The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year.?c.?The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year.?d.?The gross income test does not have to be met provided the relative is a student.?e.?All of the above.ANSWER:??aPOINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:05 AMQUESTION?ID:??JFND-GO3A-GE4D-RC33QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMF-8BOU-GPDB-GW4S-CAUD-GOSS-CP31-8YSS-KQBZ-GOSU-YCJW-8YSU-KPDR-8RHS-ECBS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE95.?Albert and Louise, ages 66 and 64, respectively, filed a joint return for 2016. They provided all of the support for their blind 19 year-old son, who had no gross income. They also provided the total support of Louise's father, who is a citizen and life-long resident of Peru. How many exemptions may they claim on their 2016 tax return??a.?2?b.?3?c.?4?d.?5?e.?None of the aboveANSWER:??bRATIONALE:??Louise's father may not be claimed since he is not a US citizen or resident of US, Mexico or Canada.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:06 AMQUESTION?ID:??JFND-GO3A-GE4D-RC3AQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMD-GA5D-Q3JW-GF1D-EPJ3-GWSS-ECDR-8YSU-1PUR-GOSS-GP3W-CCSU-NPTW-GF1U-1AJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE96.?Which of the following relatives will not satisfy the relationship test for the dependency exemption??a.?Sister?b.?Adopted child?c.?Aunt?d.?Parent?e.?All of the above satisfy the testANSWER:??ePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC4GQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-CCHU-QPBA-GR4D-NCBZ-CASS-NCTT-CESS-CAUR-GOSS-GCTW-GESU-O3B3-8Y4D-NPDG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE97.?Which of the following is not a test that must be met for a child to be considered a dependent??a.?Age test?b.?Domicile test?c.?Citizenship test?d.?Relationship test?e.?Blood testANSWER:??ePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC4FQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-G3TG-KA3W-GPTD-C3BS-GHSU-OA33-CRSS-ECBO-GOSS-CAMD-CESS-GAJA-8R4S-K3DF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE98.?Mr. and Mrs. Vonce, both age 62, file a joint return for 2016. They provided all the support for their daughter who is 19 years old, legally blind, and who earns no income. Their son, age 21 and a full-time student at a university, had $4,200 of income and provided 70 percent of his own support during 2016. How many exemptions may Mr. and Mrs. Vonce claim on their 2016 tax return??a.?2?b.?3?c.?4?d.?5?e.?None of the aboveANSWER:??bRATIONALE:??The Vonce's son does not meet the support test.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:07 AMQUESTION?ID:??JFND-GO3A-GE4D-RC4RQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMG-GBUD-NCDD-CFTU-CATI-CESU-YPTI-8RSS-ECUN-GOSU-ECUR-GCSS-GA3U-GY3S-EPB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE99.?Jessica, a 17-year-old guitarist in a successful band, earns $100,000 a year and is completely self-supporting although she lives with her parents. Can her parents claim her as a dependent? Why or why not?ANSWER:??Because Jessica is self-supporting, her parents may not claim her as a dependent. The self-support test is applied to both children and relatives who otherwise qualify, so Jessica is disqualified.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC4DQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-G3TU-QCBU-8YHU-QA3A-GCSS-RAMB-8YSS-GPUD-GOSU-OC3T-CESS-CQDB-GY5G-R3JU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE100.?Karl’s father, Vronsky, is a 60-year-old Russian citizen who lived in Russia for the full year. Karl supported Vronsky while he looked for work. Vronsky had no income. Can Karl claim Vronsky as a dependent?ANSWER:??No. Vronsky cannot be claimed as a dependent because he is not a U.S. citizen, or resident of US, Mexico or Canada.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-06 - LO:1-06NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC3UQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-G3TU-1PMD-CTTG-ECBA-GOSU-ECTW-8YSS-RAUG-GOSU-1A5G-GWSU-NQJT-GYHD-QCBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE101.?If a taxpayer's adjusted gross income exceeds certain threshold amounts, he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2016.?a.?True?b.?FalseANSWER:??TrueRATIONALE:??For 2016, itemized deductions and personal and dependency exemptions are reduced for high income taxpayers.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:09 AMQUESTION?ID:??JFND-GO3A-GE4D-RC31QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJZ-8RAS-NCTW-GWHU-1CJ1-GYSS-C3UB-8RSU-1ATI-GOSU-YPJO-GESU-YPTI-G31G-GPBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE102.?Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC3TQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-CIUG-EAJS-CFTS-GQBT-8YSU-Q3UF-8RSU-QA3W-GOSU-GA5G-GCSU-NCJ3-CR3D-OAJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE103.?Taxpayers who are blind get the benefit of:?a.?An extra exemption.?b.?An additional amount added to their standard deduction.?c.?Two standard deductions.?d.?None of the above.ANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RC3OQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJU-CJ1S-RPJW-GHAG-NATT-CRSU-NQBW-CESU-O3BS-GOSU-EAT1-GESU-CCB1-CEHS-GA3U-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE104.?Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2016??a.?$6,300?b.?$9,300?c.?$10,150?d.?$12,600?e.?None of the aboveANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:10 AMQUESTION?ID:??JFND-GO3A-GE4D-RC3ZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-GAHD-NAMD-GFUD-N3JZ-GESU-1A5G-CRSU-GCJS-GOSS-NCUN-GCSU-Y3DR-CPTS-N3T3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE105.?Jill is a 16-year-old child who is claimed as a dependent by her parents. Jill's only income is $1,400 from her bank savings account. What is the amount of Jill's standard deduction for 2016??a.?$1,200?b.?$1,050?c.?$4,000?d.?$6,300?e.?None of the aboveANSWER:??bRATIONALE:??The standard deduction for a dependent is the greater of $1,050 or $350 plus earned income up to the basic standard deduction. Jill's interest income is unearned income.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:10 AMQUESTION?ID:??JFND-GO3A-GE4D-RC3SQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMG-CT1D-1QBT-GWHD-RPJT-GYSS-KAT1-CRSU-E3T1-GOSU-RCDB-GRSS-NAJW-CRHG-K3BO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE106.?Your standard deduction will be $6,300 in 2016 if you are:?a.?Single and 67 years old.?b.?Single and 45 years old.?c.?Single, 27 years old and blind.?d.?A nonresident alien.?e.?A married individual filing a separate return and your spouse itemizes his deductions.ANSWER:??bPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:11 AMQUESTION?ID:??JFND-GO3A-GE4D-RC3IQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJA-8Y3U-GPBO-GBUD-RAJO-GWSU-QQMD-CRSU-KPUB-GOSS-CQBI-GHSU-OATU-GH4D-QAJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE107.?Brian is 60 years old, single and legally blind. Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father’s residence. What is the total standard deduction amount that Brian should claim on his 2016 tax return??a.?$9,250?b.?$10,500?c.?$10,850?d.?$13,250?e.?None of the aboveANSWER:??cRATIONALE:??($9,300?+ $1,550)POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:12 AMQUESTION?ID:??JFND-GO3A-GE4D-RC3WQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJS-GH3S-GCBW-GW4D-NCBT-GYSS-CQBS-CRSU-NATI-GOSU-K3JA-8RSU-R3JO-8BOU-GPB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE108.?Calculate the amount of the standard deduction the taxpayers should claim on their 2016 income tax returns.a. Kelly and Glenn are married with one dependent child. They file a joint return, are in good health, and both of them are under 65 years of age. They also support her aging father.b. Fran is 24 years old, in good health, and single.c. George and Georgina are married and file a joint return. George is 64 years old and Georgina is 63 years old.d. Norm is 62 years old, single and blind.e. Kimberly qualifies for head of household filing status, is 42 years old, and is in good health.f. Lizzie is 11 years old and her only income is $3,200 of interest on a savings account. She is claimed as a dependent on her parents’ tax return.ANSWER:??a. $12,600b. $6,300c. $12,600d. $7,850. An additional $1,550 is allowed due to blindnesse. $9,300f. $1,050. She is claimed as a dependent on her parents’ tax returnPOINTS:??1DIFFICULTY:??ChallengingQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: AnalysisDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:12 AMQUESTION?ID:??JFND-GO3A-GE4D-RCNNQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMN-GC4U-C3JI-GE5G-CQJZ-CESU-1CDF-CESS-GCTA-GOSS-CPDG-GCSU-OCUD-GRAD-RAJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE109.?How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?ANSWER:??A taxpayer should claim the larger of the standard deduction or the total allowed itemized deductions since the amount reduces the taxpayer’s income subject to tax.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-07 - LO:1-07NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCNBQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-GOAU-KQDR-8Y4D-YA5B-CASU-QAJA-CESS-E3B3-GOSU-RCBA-CCSS-CQDR-CR4D-RPDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE110.?An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCB3QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-GY3G-NPTS-CE4U-CCJU-CASS-NA5D-CRSS-NAJS-GOSU-OP31-GASS-GCMR-CITS-KCBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE111.?Clay purchased Elm Corporation stock 20 years ago for $10,000. In the current year, he sells the stock for $29,000. What is Clay's gain or loss??a.?$19,000 long-term?b.?$19,000 short-term?c.?$19,000 ordinary?d.?$3,000, with the excess carried forward?e.?No gain or loss is recognized on this transactionANSWER:??aRATIONALE:??($29,000 - $10,000)POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:13 AMQUESTION?ID:??JFND-GO3A-GE4D-RCBAQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-CRHS-KCBU-GH3D-YCBZ-GASS-NAJI-CRSS-NCDD-GOSU-1CMB-GESS-KCT3-CO4U-Q3JS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE112.?Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year. She has no other capital gains or losses for the year. Her taxable income without this transaction is $60,000. What is her current year taxable income considering this capital loss??a.?$44,000?b.?$54,000?c.?$57,000?d.?$70,000?e.?Some other amountANSWER:??cRATIONALE:??($60,000 - $3,000). ?Net capital loss is limited to $3,000 for individuals.POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:14 AMQUESTION?ID:??JFND-GO3A-GE4D-RCNGQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ1-CFTD-GQBZ-8FTU-KAT1-GHSS-GQB1-CRSU-C3BW-GOSS-CATI-GWSU-Q3MD-GAHD-YATU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE113.?Which of the following is not a capital asset??a.?Inventory?b.?Stocks?c.?A personal automobile?d.?Gold?e.?LandANSWER:??aPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCNFQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMN-CCAS-G3BI-GWAS-R3T3-8YSU-Y3DB-8YSS-EPJA-GOSU-E3J3-GYSU-YPTZ-CO5D-QP5B-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE114.?Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2016 for $290,000. His selling expenses were $12,000 for the year. What was Bob’s realized gain on the sale??a.?$18,000?b.?$53,000?c.?$63,000?d.?$77,000?e.?None of the aboveANSWER:??cRATIONALE:??($290,000 - $12,000) - ($250,000 - $35,000) = $63,000POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:18 AMQUESTION?ID:??JFND-GO3A-GE4D-RCNRQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMN-CO4S-NCBU-GI1U-YPJZ-GCSU-QQDB-8YSU-YQBA-GOSU-GCTO-GESU-EP5F-CAHU-EAUB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE115.?Mike purchased stock in MDH Corporation 5 years ago for $15,500. This year he sold it for $12,650 and then paid a $250 sales commission to his broker. He had no other capital gains or losses during the year.a. What is Mike’s amount realized?b. What is Mike’s adjusted basis?c. What is Mike’s realized gain or loss?d. What is Mike’s recognized gain or loss?e. How much of the gain or loss can Mike report in his tax return?ANSWER:??a. Amount realized: $12,400 = $12,650 - $250b. Adjusted basis: $15,500c. Realized loss: $12,650 - $250 - $15,500 = $3,100d. Recognized loss: $12,650 - $250 - $15,500 = $3,100e. $3,000. Up to $3,000 of capital loss can be written off each yearPOINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCNDQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJW-CJ1G-KPMN-CC4D-RPB3-CRSU-KCBI-8YSS-ECDG-GOSS-GA3T-GOSU-NPT1-GOHD-GA3O-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE116.?Fran bought stock in the FCM Corporation 4 years ago at a price of $18,000. She sold it this year for $22,225 and paid her broker $225 from the proceeds of the sale.a. What is Fran’s amount realized?b. What is Fran’s adjusted basis?c. What is Fran’s realized gain or loss?d. What is Fran’s recognized gain or loss?e. How much of the gain or loss should be included in her tax return?ANSWER:??a. Amount realized: $22,000 = $22,225 - $225b. Adjusted basis: $18,000c. Realized gain: $22,225 - $225 - $18,000 = $4,000d. Recognized gain: $22,225 - $225 - $18,000 = $4,000e. $4,000. There is no limit on the amount of capital gain to be included in tax returnsPOINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-08 - LO:1-08NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCBUQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJS-CW5G-GATO-CT1D-EA33-GCSU-NQMF-CESU-GC3S-GOSS-CC3Z-GASU-QPUF-GR4G-K3JU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE117.?The Affordable Care Act (ACA) added a Medicare surtax of 3.8 percent on net investment income.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-09 - LO:1-09NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCB1QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMR-GC4D-QA5F-8Y4G-NPJW-8YSU-KPMG-8YSU-NAJT-GOSU-YCTZ-8RSU-13BS-8BUG-G3BT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE118.?The 3.8 percent ACA Medicare surtax does not apply to:?a.?Interest?b.?Dividends?c.?Capital gains?d.?WagesANSWER:??dRATIONALE:??The 3.8% Medicare surtax applies to net investment income, not earned income such as wages.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-09 - LO:1-09NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCBTQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-GR3G-RCBZ-CO3U-CATI-CWSU-KQBZ-8YSU-G3T1-GOSS-NA3T-GASU-ECBU-CJ1D-1CBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE119.?The 0.9 percent ACA Medicare surtax applies to:?a.?Earned income?b.?Tax exempt income?c.?Gain on the sale of a principal residence?d.?IRA distributionsANSWER:??aRATIONALE:???The 0.9% medicare tax applies to earned income not unearned income.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-09 - LO:1-09NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCBOQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJS-GYAS-C3TT-GC3D-E3B1-8YSU-RQMF-CRSU-NQJS-GOSU-GA3W-CWSU-CQMG-CJOS-NQJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE120.?Gerald is single and earns $80,000 in dividend income and $180,000 in wage income in 2016. Compute his additional ACA Medicare surtax on net investment income.ANSWER:??$2,280 = 3.8% x [the lesser of ($260,000 - $200,000) or $80,000]POINTS:??1DIFFICULTY:??ModerateQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-09 - LO:1-09NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:19 AMQUESTION?ID:??JFND-GO3A-GE4D-RCBZQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJI-8R3G-EQJI-8BUD-OA3W-CASU-EA3O-CESS-EA3S-GOSU-RPTI-GESS-E3DF-GC5S-NPMN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE121.?Karen is single and earns wages of $250,000 in 2016. She has no other income. How much is her ACA Medicare surtax on earned income?ANSWER:??$450 = 0.9% x ($250,000 - $200,000)POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-09 - LO:1-09NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??9/22/2016 2:19 AMQUESTION?ID:??JFND-GO3A-GE4D-RCBSQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJZ-GC5U-QCUF-CJ1U-O3JA-CWSU-QC3U-8YSU-KPMD-GOSS-CQMF-GESU-NCJT-CCAU-OPDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE122.?Taxpayers can download tax forms from the IRS Internet site.?a.?True?b.?FalseANSWER:??TruePOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??True / FalseHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-10 - LO:1-10NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCBIQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-CEAG-G3DN-GO5G-CQDF-8YSU-EQJS-CESU-1A33-GOSU-QAUB-8RSS-EQJ3-GW4D-EQJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE123.?The IRS:?a.?requires official tax forms be obtained at the local IRS office.?b.?links to the H & R Block Web site.?c.?provides information on how to choose a stock.?d.?has an app for mobile phones.ANSWER:??dPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-10 - LO:1-10NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCBWQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJS-GCAU-CC3T-GB1D-RPTS-CCSS-C3TW-CESS-EC5G-GOSU-OCMG-8YSU-C3JU-8B1U-NCJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE124.?Internet users can sign on to and:?a.?Download tax forms and publications.?b.?Find links to other useful IRS pages.?c.?Use a search function to find forms and publications.?d.?All of the above.ANSWER:??dPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-10 - LO:1-10NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCKNQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMG-CA5U-OQMD-8RAU-Y3J3-GOSU-13TS-8RSU-Y3J1-GOSU-NCB1-GHSU-EPTT-CEAU-YATW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE125.?Mark a “Yes” to each of the following that can be found on the IRS website. If not, mark with a “No.”a. A list of IRS forms.b. A search function.c. Advice on how to avoid paying taxes.d. Ways to contact the IRS.ANSWER:??a. Yesb. Yesc. Nod. YesPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-10 - LO:1-10NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCKBQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJO-GPOS-GAJA-CW3G-KCBI-COSS-RATT-8YSU-QPTS-GOSU-Q3T3-CCSS-CCUD-GP1U-KP3A-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE126.?Electronic filing (e-filing):?a.?Reduces the chances that the IRS will make mistakes when inputting tax return information.?b.?Generally results in a slower refund.?c.?Can be done only by telephone.?d.?Requires the services of a professional.ANSWER:??aPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-11 - LO:1-11NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCJ3QUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJ3-CW3D-YCDF-GFTS-RP5F-GOSS-GP3I-8YSU-1PJT-GOSS-C3DN-CCSU-C3T3-GTOU-1CJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE127.?Electronically filed tax returns:?a.?May not be transmitted from a taxpayer’s home computer.?b.?Constitute more than 90 percent of the returns filed with the IRS.?c.?Have error rates similar to paper returns.?d.?Offer faster refunds than paper returns.ANSWER:??dPOINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Multiple ChoiceHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-11 - LO:1-11NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: KnowledgeDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCJAQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMJZ-GH5U-13UB-G3UD-OCUD-CWSS-RCJ3-CRSS-NCBZ-GOSU-OCDG-GYSS-ECMN-G3OU-C3DG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE128.?State two reasons why a person would want to e-file their return instead of mailing it.ANSWER:??A return that is e-filed has a smaller error rate than paper-filed returns. (Less than 1 percent versus more than 20 percent). E-filing also offers a faster refund because the IRS is able to process the return more quickly.POINTS:??1DIFFICULTY:??EasyQUESTION?TYPE:??Subjective Short AnswerHAS?VARIABLES:??FalseLEARNING?OBJECTIVES:??ITF.WABG.16.LO:1-11 - LO:1-11NATIONAL?STANDARDS:??United States - BUSPROG: AnalyticSTATE?STANDARDS:??United States - AK - AICPA: FN-ReportingKEYWORDS:??Bloom's: ComprehensionDATE?CREATED:??4/12/2016 3:37 PMDATE?MODIFIED:??4/12/2016 3:37 PMQUESTION?ID:??JFND-GO3A-GE4D-RCKGQUESTION?GLOBAL?ID:??GCID-E7BW-1TBP-GPTU-EC5F-CFTS-CQMF-CC31-4CBO-CAHN-4CMR-GE4N-4QJA-GOAN-4CUN-GA4S-KPBU-CIDI-GWN8-EPRW-EMMN-C3TG-NPJW-8BUG-EC5G-GOSU-QC5G-CRSU-GAUN-GOSU-13BZ-GCSU-QPB1-C3UD-GAJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE ................
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