____ 1. Which, if any, of the
then is a deduction for AGI? by
a.
Alimony payments.
B
Alimony payments.
vs.
Funeral expenses.
D.
Loss on the sale of a personal residence.
and.
Mortgage interest on the house.
a.
Alimony payments.
B
Alimony payments.
vs.
Funeral expenses.
D.
Loss on the sale of a personal residence.
and.
Mortgage interest on the house.
a.
Alimony payments.
a.
Alimony payments.
B
Alimony payments.
B
Alimony payments.
vs.
Funeral expenses.
vs.
Funeral expenses.
D.
Loss on the sale of a personal residence.
D.
Loss on the sale of a personal residence.
and.
Mortgage interest on the house.
and.
Mortgage interest on the house.
____ 2. In 2011, Esther had
the following transactions:
salary
$50,000
Bank loan (product used to buy a personal car)
10,000
received alimony
6,000
Alimony received
12,000
aunt gift
20,000
salary
$50,000
Bank loan (product used to buy a personal car)
10,000
received alimony
6,000
Alimony received
12,000
aunt gift
20,000
salary
$50,000
salary
$50,000
Bank loan (product used to buy a personal car)
10,000
Bank loan (product used to buy a personal car)
10,000
received alimony
6,000
received alimony
6,000
Alimony received
12,000
Alimony received
12,000
aunt gift
20,000
aunt gift
20,000
Esther’s IGA is:
a.
$32,000.
B
$38,000.
vs.
$44,000.
D.
$56,000.
and.
$64,000.
a.
$32,000.
B
$38,000.
vs.
$44,000.
D.
$56,000.
and.
$64,000.
a.
$32,000.
a.
$32,000.
B
$38,000.
B
$38,000.
vs.
$44,000.
vs.
$44,000.
D.
$56,000.
D.
$56,000.
and.
$64,000.
and.
$64,000.
____ 3. Sylvia, 17, is claimed
by the parents as a dependent. In 2011, she had interest income
a $2,000 bank savings account and income from a
$4,200 job. Sylvia’s taxable income is:
a.
$4,200 – $4,500 = $0.
B
$6,200 – $5,700 = $500.
vs.
$6,200 – $4,500 = $1,700.
D.
$6,200 – $950 = $5,250.
and.
None of these answers.
a.
$4,200 – $4,500 = $0.
B
$6,200 – $5,700 = $500.
vs.
$6,200 – $4,500 = $1,700.
D.
$6,200 – $950 = $5,250.
and.
None of these answers.
a.
$4,200 – $4,500 = $0.
a.
$4,200 – $4,500 = $0.
B
$6,200 – $5,700 = $500.
B
$6,200 – $5,700 = $500.
vs.
$6,200 – $4,500 = $1,700.
vs.
$6,200 – $4,500 = $1,700.
D.
$6,200 – $950 = $5,250.
D.
$6,200 – $950 = $5,250.
and.
None of these answers.
and.
None of these answers.
____ 4. Kyle and Liza are married
and under 65 years old. In 2012, they provided more than half
the support of her 18-year-old daughter, May, who lives with
they or they. May earns $15,000 from a part-time job, most of which
reserve for future college expenses. Kyle and Liza also provide
more than half the support of her 20-year-old son, Joe, who is
is not a student but lives with them and works as a part-time cellist
and composer. Joe earned an income of $4,400. Liza’s father, deceased
on January 3, 2011, at the age of 90, has for many years been referred to as
your dependant. How many personal and dependency exemptions should
Kyle and Liza claim?
a.
Of them.
B
Three.
vs.
Four.
D.
Five.
and.
None of these answers.
a.
Of them.
B
Three.
vs.
Four.
D.
Five.
and.
None of these answers.
a.
Of them.
a.
Of them.
B
Three.
B
Three.
vs.
Four.
vs.
Four.
D.
Five.
D.
Five.
and.
None of these answers.
and.
None of these answers.
____ 5. For the purpose of
determine gross income, which of the following statements is true?
a.
A taxpayer who finds a wallet full of money is not
forced to book the income because eventually someone will ask
for refund of money.
B
A mechanic performed repairs on an automobile during the year
and receives money from the customer. The customer was not
satisfied with the repairs and sued the mechanic for a refund. O
the mechanic cannot defer revenue recognition until the
process has been resolved.
vs.
The proceeds of diversions are not included in the
gross income from embezzlement because embezzlement has an obligation to
reimburse the owner.
D.
All of the above is true.
and.
None of the above is true.
a.
A taxpayer who finds a wallet full of money is not
forced to book the income because eventually someone will ask
for refund of money.
B
A mechanic performed repairs on an automobile during the year
and receives money from the customer. The customer was not
satisfied with the repairs and sued the mechanic for a refund. O
the mechanic cannot defer revenue recognition until the
process has been resolved.
vs.
The proceeds of diversions are not included in the
gross income from embezzlement because embezzlement has an obligation to
reimburse the owner.
D.
All of the above is true.
and.
None of the above is true.
a.
A taxpayer who finds a wallet full of money is not
forced to book the income because eventually someone will ask
for refund of money.
a.
A taxpayer who finds a wallet full of money is not
forced to book the income because eventually someone will ask
for refund of money.
Nope
B
A mechanic has repaired an automobile during the year
and receives money from the customer. The customer was not
satisfied with the repairs and sued the mechanic for a refund. O
the mechanic cannot defer revenue recognition until the
the process was sorted.
B
A mechanic performed repairs on an automobile during the year
and receives money from the customer. The customer was not
satisfied with the repairs and sued the mechanic for a refund. O
the mechanic cannot defer revenue recognition until the
process has been resolved.
you can not
vs.
The proceeds of diversions are not included in the
gross income from embezzlement because embezzlement has an obligation to
reimburse the owner.
vs.
The proceeds of diversions are not included in the
gross income from embezzlement because embezzlement has an obligation to
reimburse the owner.
Nope
D.
All of the above is true.
D.
All of the above is true.
and.
None of the above is true.
and.
None of the above is true.
____ 6. Jerry bought a
Series EE Savings Bond for $279. The bond has a value at maturity of
10 years of $500 and earns 6% interest. This is the first series
EE title that Jerry once held.
a.
Jerry must report interest income each year using the
original issue discount rules.
B
Jerry can report all interest income of $221 in the year
the bond matures.
vs.
Interest on bonds is exempt from federal income tax.
D.
Jerry must report ($500 – $279)/10 = $22.10 interest income each
year he holds the title.
and.
None of these answers.
a.
Jerry must report interest income each year using the
original issue discount rules.
B
Jerry can report all interest income of $221 in the year
the bond matures.
vs.
Interest on bonds is exempt from federal income tax.
D.
Jerry must report ($500 – $279)/10 = $22.10 interest income each
year he holds the title.
and.
None of these answers.
a.
Jerry must report interest income each year using the
original issue discount rules.
a.
Jerry must report interest income each year using the
original issue discount rules.
B
Jerry can report all interest income of $221 in the year
the bond matures.
B
Jerry can report all interest income of $221 in the year
the bond matures.
vs.
Interest on bonds is exempt from federal income tax.
vs.
Interest on bonds is exempt from federal income tax.
D.
Jerry must report ($500 – $279)/10 = $22.10 interest income each
year he holds the title.
D.
Jerry must report ($500 – $279)/10 = $22.10 interest income each
year he holds the title.
and.
None of these answers.
and.
None of these answers.
____ 7. Mike hired Kram
Company, a company controlled by Mike. Mike was a doctor
and the contract stipulated that he would work exclusively for the
society. No other doctors worked for the company. O
company hired to perform an operation for Rosa for $8,000.
The company paid Mike $6,500 to complete the transaction under the
terms of your employment contract.
a.
Mike’s gross income is $6,500.
B
Mike must recognize gross income of $8,000 because he provided
the service.
vs.
Mike should recognize gross income of $8,000 as a patient
obviously wanted him to perform the operation.
D.
Kram Company’s gross income is $1,500.
and.
None of these answers.
a.
Mike’s gross income is $6,500.
B
Mike must recognize gross income of $8,000 because he provided
the service.
vs.
Mike should recognize gross income of $8,000 as a patient
obviously wanted him to perform the operation.
D.
Kram Company’s gross income is $1,500.
and.
None of these answers.
a.
Mike’s gross income is $6,500.
a.
Mike’s gross income is $6,500.
B
Mike must recognize gross income of $8,000 because he provided
the service.
B
Mike must recognize gross income of $8,000 because he provided
the service.
vs.
Mike should recognize gross income of $8,000 as a patient
obviously wanted him to perform the operation.
vs.
Mike should recognize gross income of $8,000 as a patient
obviously wanted him to perform the operation.
D.
Kram Company’s gross income is $1,500.
D.
Kram Company’s gross income is $1,500.
and.
None of these answers.
and.
None of these answers.
____ 8. Taxpayer marginal
the tax rate is 25%. What does the taxpayer prefer?
a.
BRL 1.00 taxable income instead of BRL 1.00 tax exempt income.
B
$0.80 of tax exempt income instead of $1.00 of taxable income.
vs.
$1.25 of taxable income instead of $1.00 of tax exempt income.
D.
$1.30 of taxable income instead of $1.00 of tax exempt income.
and.
None of these answers.
a.
BRL 1.00 taxable income instead of BRL 1.00 tax exempt income.
B
$0.80 of tax exempt income instead of $1.00 of taxable income.
vs.
$1.25 of taxable income instead of $1.00 of tax exempt income.
D.
$1.30 of taxable income instead of $1.00 of tax exempt income.
and.
None of these answers.
a.
BRL 1.00 taxable income instead of BRL 1.00 tax exempt income.
a.
BRL 1.00 taxable income instead of BRL 1.00 tax exempt income.
B
$0.80 of tax exempt income instead of $1.00 of taxable income.
B
$0.80 of tax exempt income instead of $1.00 of taxable income.
vs.
$1.25 of taxable income instead of $1.00 of tax exempt income.
vs.
$1.25 of taxable income instead of $1.00 of tax exempt income.
D.
$1.30 of taxable income instead of $1.00 of tax exempt income.
D.
$1.30 of taxable income instead of $1.00 of tax exempt income.
and.
None of these answers.
and.
None of these answers.
____ 9. Carin, widow, chosen
receive the proceeds of a $150,000 life insurance policy at
the life of her late husband in 10 installments of $17,500 each.
Her husband paid $60,000 premiums on the policy. At
The first year, Carin received $17,500 from the insurance company. Is it over there
must include in gross income:
a.
$0.
B
$2,500.
vs.
10,000 $.
D.
$25,000.
and.
None of these answers.
a.
$0.
B
$2,500.
vs.
$10,000.
D.
$25,000.
and.
None of these answers.
a.
$0.
a.
$0.
B
$2,500.
B
$2,500.
vs.
$10,000.
vs.
$10,000.
D.
$25,000.
D.
$25,000.
and.
None of these answers.
and.
None of these answers.
____ 10. State University Scholarship
may exclude from gross income grant proceeds used to pay
by:
a.
Only monthly payment.
B
Tuition, books and supplies.
vs.
Tuition, books, supplies, meals and accommodation.
D.
Meals and accommodation.
and.
None of these answers.
a.
Monthly fee only.
B
Tuition, books and supplies.
vs.
Tuition, books, supplies, meals and accommodation.
D.
Meals and accommodation.
and.
None of these answers.
a.
Monthly fee only.
a.
Monthly fee only.
B
Tuition, books and supplies.
B
Tuition, books and supplies.
vs.
Tuition, books, supplies, meals and accommodation.
vs.
Tuition, books, supplies, meals and accommodation.
D.
Meals and accommodation.
D.
Meals and accommodation.
and.
None of these answers.
and.
None of these answers.
____ 11. Barney is a full-time graduate student at
State University. He acts as a research assistant for which he is
paid $700 per month for 9 months and his monthly fee of $5,000 is waived.
In addition, he receives a research grant of $1,500 to pursue his own
research and studies. Barney’s gross income from the above is:
a.
$0.
B
$6,300.
vs.
$11,300.
D.
$12,800.
and.
None of these answers.
a.
$0.
B
$6,300.
vs.
$11,300.
D.
$12,800.
and.
None of these answers.
a.
$0.
a.
$0.
B
$6,300.
B
$6,300.
vs.
$11,300.
vs.
$11,300.
D.
$12,800.
D.
$12,800.
and.
None of these answers.
and.
None of these answers.
____ 12. Olaf was injured in a car accident
and was awarded $25,000 for his physical injury, $10,000 for his loss
income and $50,000 in punitive damages. Following the reward,
the amount Olaf must include in gross income is:
a.
$10,000.
B
$50,000.
vs.
$60,000.
D.
$85,000.
and.
None of these answers.
a.
$10,000.
B
$50,000.
vs.
$60,000.
D.
$85,000.
and.
None of these answers.
a.
$10,000.
a.
$10,000.
B
$50,000.
B
$50,000.
vs.
$60,000.
vs.
$60,000.
D.
$85,000.
D.
$85,000.
and.
None of these answers.
and.
None of these answers.
Answer 1
The solution:-
1.
a. Alimony payments.
Explanation:-
Adjusted gross
Income (AGI) Income (including salaries,
interest, capital gains, income from retirement accounts,
alimony paid to you) adjusted downward by
deductions (including contributions
deductible retirement accounts, alimony
paid by you); but not including standard and detailed
deductions.
of them.
D. $56,000
3.
vs. $6,200 – $4,500 = $1,700
4.
vs. Four
As
as directed by Chegg if more than one question is posted than we
likely to answer a single question.