Reference no: EM132492994

Question 1: Maria had municipal bond interest of $6,000, certificate of deposit interest of $4,000, reinvested corporate bond interest of $2,000, mutual fund municipal bond interest of $7,000 and savings account interest of $1,000. What is Maria's taxable interest?

A. $3,000.
B. $7,000.
C. $20,000.
D. $16,000.

Question 2: As part of their divorce agreement, Harry transfers to Mary, his former spouse, GM stock with a market value of $30,000. Harry had $20,000 invested in the stock. How does this transfer affect Harry, and what is Mary's basis in the stock?

A. Harry has no gain or loss, and Mary's basis is $20,000.
B. Harry has no gain or loss, and Mary's basis is $30,000.
C. Harry has a gain of $10,000, and Mary's basis is $20,000.
D. Harry has a gain of $10,000, and Mary's basis is $30,000.
E. None of the above.

Question 3: Which of the following items is not taxable?

A. Interest on U.S. Treasury bills, notes, and bonds issued by an agency of the United States
B. Interest on federal income tax refund
C. Interest on New York State bonds
D. Discount income in installment payments received on notes bought at a discount
E. Amount received from a condemning authority to compensate for a delay in paying an award

Question 4: Which of the following are taxable to the recipient for federal income tax purposes?

A. Monetary gift.
B. Bequest of property.
C. Amount received in settlement of a will contest.
D. An assignment of income from property.
E. None of these is generally taxable to the recipient

Question 5: The Martins file a joint return. Their AGI is $375,800. The Martins report the following amounts on Schedule A: home mortgage interest, $12,920; real estate taxes, $5,100; and $7,000 of cash gifts to qualified charities. The amount the Martins will deduct from AGI for their itemized deductions is:

A. $23,160.
B. $13.746.
C. $18,584.
D. $25,020.
E. $21,491.