Question 1

After Carolyn moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $500.The $500 is income to Carolyn.

Accepted Answer

A) True 
 B)False

Question 2

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son.During 2012, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks.Merle's taxable income is:

Accepted Answer

A)  $4,000 - $950 - $2,900 = $150.
B)  $4,000 - $2,900 = $1,100.
C)  $4,000 - $950 - $1,450 = $1,600.
D)  $8,800 - $950 - $2,900 = $4,950.
E)  None of the above.F) A) and B)
G) C) and D)

Question 3

DeWayne is a U.S.citizen and resident.He spends much of each year in the United Kingdom on business.He is married to Petula, a U.K.citizen and resident of London.DeWayne has heard that it is possible that he can file a joint income tax return for U.S.purposes.If this is so, what are the constraints he should consider in making any such decision?

Accepted Answer

The election to file a joint return has ...

Question 4

A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.

Accepted Answer

A) True 
 B)False

Question 5

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

Accepted Answer

A) True 
 B)False

Question 6

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI. Since he plans to choose the standard deduction option for the year, does the distinction matter? Explain.

Accepted Answer

It makes a great deal of difference if t...

Question 7

Pedro is married to Consuela, who lives with him.Both are U.S.citizens and residents of Nebraska.Pedro furnishes all of the support of his parents, who are citizens and residents of Mexico.He also furnishes all of the support of Consuela's parents, who are citizens and residents of El Salvador.Consuela has no gross income for the year.If Pedro files as a married person filing separately, how many personal and dependency exemptions can he claim on his return?

Accepted Answer

Four.A personal exemption for Pedro and ...

Question 8

The filing status of a taxpayer (e.g., single, head of household) must be identified before taxable income is determined.

Accepted Answer

A) True 
 B)False

Question 9

In 2012, Pierre had the following transactions:  Pierre's AGI is:

Accepted Answer

A)  $83,000.
B)  $94,000.
C)  $98,000.
D)  $103,000.
E)  $114,000.F) B) and D)
G) B) and E)

Question 10

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

Accepted Answer

A) True 
 B)False

Exam 3: Computing the Tax

Correct Answer
verified
The election to file a joint return has ...
View Answer

Correct Answer
verified
Four.A personal exemption for Pedro and ...
View Answer

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

Correct Answer
verified

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI. Since he plans to choose the standard deduction option for the year, does the distinction matter? Explain.

Correct Answer
verified
It makes a great deal of difference if t...
View Answer

In 2012, Pierre had the following transactions: Pierre's AGI is:

Correct Answer
verified

The filing status of a taxpayer (e.g., single, head of household) must be identified before taxable income is determined.

Correct Answer
verified

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

Correct Answer
verified

After Carolyn moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $500.The $500 is income to Carolyn.

Correct Answer
verified

A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.

Correct Answer
verified

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son.During 2012, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks.Merle's taxable income is:

Correct Answer
verified

Exam 3: Computing the Tax

Correct AnswerverifiedThe election to file a joint return has ...View AnswerShow Answer

Correct AnswerverifiedFour.A personal exemption for Pedro and ...View AnswerShow Answer

An increase in a taxpayer's AGI will increase the amount of medical expenses that can be deducted.

Correct AnswerverifiedShow Answer

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI. Since he plans to choose the standard deduction option for the year, does the distinction matter? Explain.

Correct AnswerverifiedIt makes a great deal of difference if t...View AnswerShow Answer

In 2012, Pierre had the following transactions: Pierre's AGI is:

Correct AnswerverifiedShow Answer

The filing status of a taxpayer (e.g., single, head of household) must be identified before taxable income is determined.

Correct AnswerverifiedShow Answer

Monique is a resident of the U.S.and a citizen of France. If she files a U.S.income tax return, Monique can claim the standard deduction.

Correct AnswerverifiedShow Answer

After Carolyn moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $500.The $500 is income to Carolyn.

Correct AnswerverifiedShow Answer

A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.

Correct AnswerverifiedShow Answer

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son.During 2012, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks.Merle's taxable income is:

Correct AnswerverifiedShow Answer

Correct Answer
verified
The election to file a joint return has ...
View Answer

Correct Answer
verified
Four.A personal exemption for Pedro and ...
View Answer

Correct Answer
verified

Correct Answer
verified
It makes a great deal of difference if t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified