Milan Quiz Chp 3

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Chapter 3 Quiz

Milan Singh

Started: February 11, 2012 3:58 PM

Questions: 10

1.COMPREHENSIVE VOLUME CHAPTER 3²TAX DETERMINATION; PERSONAL ANDDEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Question TF#5(Points: 2)

An ³above the line´ deduction refers to a deduction for AGI.

1. False

2. True

true

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

1. True

2. False

false

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3.COMPREHENSIVE VOLUME CHAPTER 3²TAX DETERMINATION; PERSONAL AND

DEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Question MC#8(Points: 2)

During 2011, Esther had the following transactions: Salary $50,000Bank loan (proceeds used to buy personal auto) 10,000Alimony received 6,000Child support received 12,000



Gift from aunt 20,000

Esther¶s AGI is:

1. $56,000.

2. $44,000.

3. $64,000.

4. $38,000.

5. $32,000.

option 1

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

1. True

2. False

false

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5.COMPREHENSIVE VOLUME CHAPTER 3²TAX DETERMINATION; PERSONAL ANDDEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Question TF#39

(Points: 2)In 2011, Hal furnishes more than half of the support of his ex-wife and her father, neither of whom lives with him. The divorce occurred in 2010. Hal may claim the father-in-law and theex-wife as dependents.

1. True



2. False

false

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Once TI (taxable income) is determined, the taxpayer must make a choice between itemizingor claiming the standard deduction.

1. False

2. True

false

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7.COMPREHENSIVE VOLUME CHAPTER 3²TAX DETERMINATION; PERSONAL ANDDEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Question MC#11(Points: 2)

In 2011, Justin had the following transactions: Salary $90,000Capital loss from a stock investment (4,000)Moving expense to change jobs (11,000)Received repayment of $20,000 loan she made to her brother in 2006(includes no interest) 20,000State income taxes (5,000)

Justin¶s AGI is:

1. $76,000.

2. $73,000.

3. $81,000.

4. $89,000.



5. $78,000.

otion 1

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8.COMPREHENSIVE VOLUME CHAPTER 3²TAX DETERMINATION; PERSONAL ANDDEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Question TF#16 (Points: 2)

As opposed to itemizing deductions from AGI, the majority of individual taxpayers choose thestandard deduction.

1. True

2. False

true

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9.COMPREHENSIVE VOLUME CHAPTER 3²TAX DETERMINATION; PERSONAL ANDDEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Question TF#34 (Points: 2)

In determining whether the support test is met for dependency exemption purposes, only thetaxable portion of a scholarship is considered.

1. False

2. True

false

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10.COMPREHENSIVE VOLUME CHAPTER 3²TAX DETERMINATION; PERSONAL ANDDEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Question MC#32 (Points: 2)

Which, if any, of the following is a correct statement relating to the kiddie tax?

1. If the kiddie tax applies, the parents must include the income of the child on their ownincome tax return.



2. None of the above.

3. If the parents are divorced, the income of the noncustodial parent is used to determinethe allocable parental tax.

4. The kiddie tax does not apply if both parents of the child are deceased.

5. The components for the application of the kiddie tax are not subject to adjustment forinflation.

4 true

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Milan Quiz Chp 3