AC 499 Unit 7 Assignment Federal Taxation Questions(Kaplan)
1. The current income tax system was:
2. Partnership income is reported on:
3. Which of the following is a deduction for adjusted gross income in 2012?
4. All of the following are itemized deductions in 2012 except:
5. Ramon, a single taxpayer, has adjusted gross income for 2012 of $ 98,000 and his itemized deductions total $ 19,000. What taxable income will Ramon show in 2012?
6. Margaret and her sister support their mother and together provide 85 percent of their mother’s support. If Margaret provides 40% of her mother’s support:
7. Lyn, age 65, and Robert, age 66, are married and support Lyn’s father (no taxable income) and Robert’s mother, who has $ 2,200 of gross income. If they file a joint return for 2012, how many exemptions may Lyn and Robert claim?
8. Arthur is 65 years old. He supports his father, who is 90 years old, blind, and has no income. For 2012, how many exemptions should Arthur claim on his tax return?
9. Jayne purchased General Motors stock 6 years ago for $20,000. In 2012, she sells the stock for $35,000. What is Jayne’s gain or loss?
10. Shannon has a long-term capital loss of $7,000 on the sale of bonds in 2012. His taxable income without this transaction is $48,000. What is his taxable income considering this capital loss?
11. All of the following items are taxable to the taxpayer receiving them, except:
12. Which of the following types of income is tax free?
13. Which of the following is included in gross income?
14. Which of the following items would be includable in the gross income of the recipient?
15. For 2012, the maximum % of Social Security benefits that must be included in gross income is:
16. Generally, modified adjusted gross income (MAGI) is adjusted gross income (without Social Security benefits):
17. Ironwood Corporation has ordinary taxable income of $40,000 for calendar- year 2012, and a long-term capital loss of $20,000. What is the corporation’s tax liability for 2012?
18. Which of the following is not a corporate organizational expenditure that may be amortized?
19. Which of the following is not required for a corporation to be classified as a small business corporation and be eligible to make an S corporation election in 2012?
20. Travis transfers land with a fair market value of $125,000, basis of $25,000, to a corporation in exchange for 100% of the corporation’s stock. What amount of gain must Travis recognize as a result of this transaction?