01 Jan Points Received:

Grading Summary

These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the “Details” section below.

Date and Time Started: 1/23/2016 2:01:49 AM

Time Spent: 2 h , 00 secs

Points Received: 28 / 80 (35%)

Question Type: # Of Questions: # Correct:

Multiple Choice 20 7

Grade Details – All Questions

Question 1. Question :

Charlie is claimed as a dependent on his parents’ tax return in 2014. He received $8,000 during the year from a part-time acting job, which was his only income. What is his standard deduction?

$1,000

$6,200

$8,000

$8,350

Points Received: 0 of 4

Comments:

Question 2. Question :

Denzel earns $130,000 in 2014 through his job as a sales manager. What is his FICA tax?

$9,139

$8,951

$8,698

$9,945

Points Received: 0 of 4

Comments:

Question 3. Question :

Which of the following taxes is proportional?

Gift tax

Income tax

Sales tax

Federal Insurance Contributions Act (FICA)

Points Received: 4 of 4

Comments:

Question 4. Question :

Husband and wife, who live in a common law state, are eligible to file a joint return for 2014, but elect to file separately. They do not have dependents. Wife has adjusted gross income of $25,000 and has $2,200 of expenditures which qualify as itemized deductions. She is entitled to one exemption. Husband deducts itemized deductions of $11,200. What is the taxable income for the wife?

$14,850

$18,850

$8,650

$22,800

Points Received: 0 of 4

Comments:

Question 5. Question :

All of the following items are deductions for (not from) adjusted gross income except

moving expenses.

unreimbursed employee business expenses.

qualifying contributions to individual retirement accounts.

one-half of self-employment taxes paid.

Points Received: 0 of 4

Comments:

Question 6. Question :

All of the following items are included in gross income except

: alimony received.

rent income.

interest earned on a bank account.

child support payments received.

Points Received: 4 of 4

Comments:

Question 7. Question :

A single taxpayer provided the following information for 2014:

Salary $80,000

Interest on local government bonds (qualifies as a tax exclusion) 4,000

Allowable itemized deductions 13,000

What is taxable income?

$57,050

$63,050

$63,000

$67,050

Points Received: 0 of 4

Comments:

Question 8. Question :

Helen, who is single, is considering purchasing a residence that will provide a $28,000 tax deduction for property taxes and mortgage interest. If her marginal tax rate is 25% and her effective tax rate is 20%, what is the amount of Helen’s tax savings from purchasing the residence?

$5,600

$7,000

$21,000

$22,400

Points Received: 4 of 4

Comments:

Question 9. Question :

Annisa, who is 28 and single, has an adjusted gross income of $55,000 and itemized deductions of $5,000. In 2014, Annisa will have taxable income of

$44,850.

$46,050.

$51,050.

$43,800.

Points Received: 0 of 4

Comments:

Question 10. Question :

Taxable income for an individual is defined as

AGI reduced by itemized deductions.

AGI reduced by personal and dependency exemptions.

total income reduced by the standard deduction.

AGI reduced by deductions from AGI and personal and dependency exemptions.

Points Received: 0 of 4

Comments:

Question 11. Question :

Eric dies in the current year and has a gross estate valued at $6,500,000. The estate incurs funeral and administrative expenses of $100,000 and also pays off Eric’s debts which amount to $250,000. Eric bequeaths $600,000 to his wife. Eric made no taxable transfers during his life. Eric’s taxable estate will be

$210,000.

$5,550,000.

$6,150,000.

$6,500,000.

Points Received: 0 of 4

Comments:

Question 12. Question :

When property is transferred, the gift tax is based on

replacement cost of the transferred property.

fair market value on the date of transfer.

the transferor’s original cost of the transferred property.

the transferor’s depreciated cost of the transferred property.

Points Received: 4 of 4

Comments:

Question 13. Question :

Shaquille buys new cars for five of his friends. Each car cost $70,000. What is the amount of Shaquille’s taxable gifts?

$0

$280,000

$336,000

$350,000

Points Received: 0 of 4

Comments:

Question 14. Question :

Which of the following is not one of Adam Smith’s canons of taxation?

Equity

Convenience

Certainty

Paid by all citizens

Points Received: 4 of 4

Comments:

Question 15. Question :

Thomas dies in the current year and has a gross estate valued at $3,000,000. During his lifetime (but after 1976) Thomas had made taxable gifts of $400,000. The estate incurs funeral and administrative expenses of $100,000 and also pays off Thomas’s debts which amount to $300,000. Thomas bequeaths $500,000 to his wife. What is the amount of Thomas’s tax base, the amount on which the estate tax is computed?

$2,100,000

$2,500,000

$2,600,000

$3,400,000

Points Received: 4 of 4

Comments:

Question 16. Question :

In 2014, the standard deduction for a married taxpayer filing a joint return who is 67 years old with a spouse who is 65 years old is

$12,400.

$13,600.

$14,800.

$15,500

Points Received: 0 of 4

Comments:

Question 17. Question :

Which of the following is not a social objective of the tax law?

Prohibition of a deduction for illegal bribes, fines, and penalties

A deduction for charitable contributions

An exclusion for interest earned by large businesses

Creation of tax-favored pension plans

Points Received: 0 of 4

Comments:

Question 18. Question :

Paul makes the following property transfers in the current year:

• $22,000 cash to his wife

• $34,000 cash to a qualified charity

• $220,000 house to his son

• $3,000 computer to an unrelated friend

The total of Paul’s taxable gifts, assuming he does not elect gift splitting with his spouse, subject to the unified transfer tax is

$206,000.

$214,000.

$234,000.

$279,000.

Points Received: 0 of 4

Comments:

Question 19. Question :

Deborah, who is single, is claimed as a dependent on her parents’ tax return. She had a part-time job during 2014 and earned $850 during the year, which was her only income. What is her standard deduction?

$850

$1,000

$1,200

$6,100

Points Received: 0 of 4

Question 20. Question :

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

no gross income.

no taxable income.

Points Received: 4 of 4

Comments: