tax, Basic Statistics

_______ 1. F''s share of income from various sources is as follows for the current year:
Source F''s Share of Entity''s Net Income F''s Share of Distributions
ABC Partnership after deducting partner''s salary $ 6,000 $ 9,000
F''s salary from ABC Partnership n/a 30,000
XYZ Corporation, a C corporation 80,000 10,000
Interest from bank savings account 40,000 n/a
F''s A.G.I, (ignoring the deduction for one-half of any self-employment tax) is how much?
a. $89,000
b. $156,000
c. $86,000
d. $56,000
________ 2. Which of the following is not true of the gross income test for the dependency exemption (i.e., in testing to determine if the individual is a qualifying relative)?
a. Generally, a dependent''s gross income may not exceed the exemption amount.
b. Gross income is interpreted to mean "gross cash receipts."
c. A child of the taxpayer, under age 24, who is a full-time student at any time during five calendar months of the tax year is exempted from the test.
d. A child of the taxpayer under age 19 is exempted from the test.
________ 3. Fred, 19 years of age and single, is claimed as a dependent on his parents'' return. He has decided not to go to college. The following information is derived from his tax return for 2011:
Taxable interest and dividends $3,600
Salary from part-time job 2,500
Itemized deductions 1,270
Which of the following is false?
a. Fred''s taxable income is $3,300.
b. Fred will not itemize his deductions for the year.
c. $1,700 of the interest and dividends will be taxed at Fred''s parents'' marginal tax rate if it is higher than Fred''s rate.
d. Fred''s standard deduction is $2,800.
4. In which of the following situations would the taxpayer not be considered in constructive receipt of income in 2011? Assume that all of the taxpayers use the cash method of accounting.
a. Al is a self-employed accountant. On December 27, 2011, he received a check for $2,000 for preparing the November financial statements of one of his clients. Due to illness, he was unable to deposit the check until January 5, 2012.
b. Ben entered into a contract to sell his rental property on December 3, 2011. On that date, the down payment, a check for $1,000, was placed in an escrow account. Ben received the check when the transaction closed on January 20, 2012.
c. Sugar Ray fought Rocky on December 25, 2011, a Christmas fight shown on television all over the world. On December 28, the fight promoters gave Sugar Ray''s agent, Leo Luciani, a check for $5 million representing his prize money for the fight. Leo delivered the check to Sugar Ray on January 12, 2012.
d. On December 20, 2011, Mr. Big received stock worth $10,000 as a bonus from the corporation for which he worked. He did not sell the stock until January 5, 2012.
e. All of the taxpayers above are in constructive receipt of the income items.
________ 5. S is a cash basis, calendar year taxpayer (she uses the accrual-method for inventory). She operates Cloth R Us. All of the store''s profits come from the sale of fabric. During the year she paid the following expenses:
1. $3,000 premium for liability insurance covering her business. The coverage runs from December 1, 2011 through November 30, 2014.
2. $10,000 for cloth, all of which is still on hand at the end of the taxable year.
3. $2,000 for "points" related to obtaining a loan for the purchase of her personal residence.
4. $1,200 for "points" related to obtaining a loan on rental property.
S may deduct all of the expense incurred in 2011 for which item(s)?
a. 1.
b. Land2.
c. L, 2. and 3.
d. L, 3. and 4.
e. 3.

Posted Date: 5/18/2012 6:00:06 PM | Location : United States

Related Discussions:- tax, Assignment Help, Ask Question on tax, Get Answer, Expert's Help, tax Discussions

Write discussion on tax
Your posts are moderated
Related Questions
What is a purchase return? A buy purchase return occurs when a buyer profits products that it has bought from a provider. Under the regular inventory system, the cost of the

what is the difference between histogram and historigram

mathametical examples of components

impact of cost accounting technique in organizational performance

In the 2009 baseball season, the team that finished the regular season with the best record in the National League was the Los Angeles Dodgers, with a record of 95-67. (For those o

Problem 1 . Let X 0 ;X 1 ;X 2 . . . be a Markov chain with state space f1; 2g and transition probabilities given as follows: p 11 = 0:3; p 12 = 0:7; p 21 = 0:5; p 22 = 0:5:

difference between historigram and histogram

Preamble For the assignment you have been given brief background details of a research project and you are required to produce a portfolio of short reports. Portfolios are to b

Circular motion  is termed as when an object experiences the right amount of  net force which is  directed toward the center of the circle / curve. The net acceleration of an objec

discuss the nature and causes of the components of an economic time series?