ch07
37 Pages

ch07

Course Number: ACCT 405, Spring 2013

College/University: Texas A&M

Word Count: 7910

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ch07 Student: 1. Both the width (or range) of the tax brackets (the amount of income taxed at a particular rate) in the tax rate schedules and the range of the tax rates in the tax rate schedules (the difference between the lowest tax rate and the highest tax rate) vary by filing status. True False 2. The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of...

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the ch07 Student: 1. Both width (or range) of the tax brackets (the amount of income taxed at a particular rate) in the tax rate schedules and the range of the tax rates in the tax rate schedules (the difference between the lowest tax rate and the highest tax rate) vary by filing status. True False 2. The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income. True False 3. Tax rate schedules are provided for use by (relatively) higher income taxpayers while the tax tables are provided for use by (relatively) lower income taxpayers. True False 4. If a married couple has one primary breadwinner, filing a joint return will likely result in a marriage penalty. True False 5. If both spouses of a married couple earn roughly equivalent wages, the couple is likely to pay a marriage penalty due to the nature of the tax rate schedules. True False 6. A marriage penalty occurs when a couple pays more taxes by filing a joint tax return than they would have paid had they filed married filing separate returns. True False 7. All capital gains are taxed at preferential rates. True False 8. Long-term capital gains, dividends, and taxable interest income are all taxed at preferential rates. True False 9. In certain circumstances a child with very little income may have their income taxed at the parents' marginal tax rate. True False 10. The kiddie tax does not apply to children over 24 years old at the end of the tax year. True False 11. The alternative minimum tax system requires taxpayers to apply an alternative tax rate on the regular income tax base to determine the amount of the alternative minimum tax. True False 12. Regular taxable income is the starting point for determining the alternative minimum tax. True False 13. The alternative minimum tax is the AMT base multiplied by the AMT rate. True False 14. Long-term capital gains are taxed at the stated AMT rate for purposes of the alternative minimum tax. True False 15. Taxpayers are not allowed to deduct personal or dependency exemptions for alternative minimum tax purposes. True False 16. For alternative minimum tax purposes, taxpayers are required to add back the regular tax standard deduction amount for their filing status whether or not they itemized deductions for regular tax purposes. True False 17. For alternative minimum tax purposes, taxpayers are allowed to deduct state income taxes but are not allowed to deduct charitable contributions. True False 18. The AMT exemption amount is phased-out for high income taxpayers. True False 19. All else equal, a reduction in regular income tax rates would require more taxpayers to pay the alternative minimum tax. True False 20. Due to the alternative minimum tax rate structure, timing tax planning strategies are not effective under the alternative minimum tax system. True False 21. Employees must pay both Social Security tax and Medicare tax on all of their wages no matter the amount of their wages. True False 22. For married couples, the Social Security wage base limitation applies separately to each spouse. True False 23. Alton reported net income from his sole proprietorship of $90,000. To determine his self employment tax, he would multiply $90,000 by the self-employment tax rate. True False 24. Employee status is always better than independent contractor status for a taxpayer because the employee is responsible for paying the employee portion of the FICA taxes. True False 25. Self-employed taxpayers are allowed to deduct the full amount of the self-employment taxes they pay. True False 26. Employees are not allowed to deduct FICA taxes they pay. True False 27. Employees are allowed to deduct a portion of the FICA taxes they pay. True False 28. Katlyn reported $300 of net income from her sole proprietorship. She is not required to pay selfemployment tax. True False 29. All else equal, taxpayers are more likely to be classified as employees rather than independent contractors if they are allowed to determine their own working hours and work without frequent oversight. True False 30. Tax credits reduce a taxpayer's taxable income dollar for dollar. True False 31. The child tax credit is subject to phase-out based on the taxpayer's AGI. True False 32. Parents may claim a child tax credit for a dependent child who is 22 years of age at the end of the year if the child is a full-time student. True False 33. Parents may claim a child and dependent care credit for expenses incurred in providing for their dependents while the parents work as long as the children are over age 14 and under age 20 at year end. True False 34. John and Sally pay Janet (Sally's older sister) to watch John and Sally's child Dexter during the day. Janet cares for Dexter in her home. John and Sally may claim a child and dependent care credit based on the amount they pay Janet to care for Dexter. True False 35. The child and dependent care credit entitles qualifying taxpayers to a credit equal to the full amount of qualified expenses. True False 36. The American opportunity credit is available only for those students who are in their first or second year of postsecondary education. True False 37. The lifetime learning credit can be used toward the cost of any course of instruction to acquire or improve a taxpayer's job skills, no matter the age of the taxpayer. True False 38. The American opportunity credit and lifetime learning credit are available to all taxpayers regardless of their income level. True False 39. The earned income credit is sometimes referred to as a negative income tax. True False 40. To qualify for the earned income credit, the taxpayer must have a qualified dependent. True False 41. An 80-year-old taxpayer with earned income and no dependent children could qualify for the earned income credit. True False 42. Business credits are generally refundable credits. True False 43. Taxpayers are generally allowed to carry back and/or carry forward unused business credits. True False 44. When applying credits against a taxpayer's gross tax liability, nonrefundable personal credits are applied first, then business credits, and finally refundable personal credits. True False 45. An individual could pay 100% of her tax liability by the due date of her tax return and still be subject to underpayment tax penalties. True False 46. Depending on the year, the unextended due date for an individual's tax return may be after April 15. True False 47. Depending on the year, the unextended due date for an individual's tax return may be before April 15. True False 48. Individuals may file for and receive a six-month extension of time to file their tax return and pay their taxes without penalty. True False 49. The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid. The maximum amount of the penalty is unlimited. True False 50. Which of the following is not a taxpayer filing status for purposes of determining the appropriate tax rate schedule? A. Head of Household B. Qualifying Widow or Widower C. Married Filing Separately D. Single E. All of these are taxpayer filing statuses 51. The taxable income levels in the married filing jointly tax rate schedule are filing separately schedule. A. the same as B. double C. half the amount of D. none of these those in the married 52. Linda is a qualifying widow in 2012. In 2012, she reported $75,000 of taxable income (all ordinary). What is her gross tax liability using the tax rate schedules? A. $10,810 B. $14,890 C. $14,780 D. $13,518 53. Miley, a single taxpayer, plans on reporting $26,350 of taxable income this year (all of her income is from a part-time job). She is considering applying for a second part-time job that would give her an additional $10,000 of taxable income. By how much will the income from the second job increase her tax liability (use the tax rate schedules)? A. $1,000 B. $1,500 C. $1,600 D. $2,500 54. Tamra and Jacob are married and they file a joint tax return. Tamra received nearly three times the salary that Jacob received. Which of the following statements is true? A. Tamra and Jacob likely pay no tax marriage penalty nor receive a tax marriage benefit. B. Tamra and Jacob likely pay a tax marriage penalty. C. Tamra and Jacob likely receive a tax marriage benefit. D. Tamra and Jacob likely will pay a tax marriage penalty and receive a tax marriage benefit. 55. Stephanie and Mitch are married and they file a joint tax return. Mitch received a slightl y higher salary than Stephanie did during the year. Which of the following statements is true? A. Stephanie and Mitch likely pay no tax marriage penalty nor receive a tax marriage benefit. B. Stephanie and Mitch likely pay a tax marriage penalty. C. Stephanie and Mitch likely receive a tax marriage benefit. D. Stephanie and Mitch likely will pay a tax marriage penalty and receive a tax marriage benefit. 56. Harrison received a qualified dividend. Without knowing any additional facts, which of the following statements is true regarding the rate at which the dividend will be taxed to Harrison? A. The dividend will be taxed at a 15% tax rate. B. The dividend will be taxed at a 0% tax rate. C The entire dividend will be taxed at either 0% or the entire dividend will be taxed at 15% depending on . Harrison's marginal ordinary income tax rate. D. None of these. 57. Jamie is single. In 2012, she reported $100,000 of taxable income, including a long-term capital gain of $5,000. What is her gross tax liability, rounded to the nearest whole dollar amount (use the tax rate schedules)? A. $22,861 B. $21,461 C. $20,811 D. $15,000 58. Angelena files as a head of household. In 2012, she reported $50,000 of taxable income, including a $10,000 qualified dividend. What is her gross tax liability, rounded to the nearest whole dollar amount (use the tax rate schedules)? A. $5,380 B. $5,778 C. $7,500 D. $7,145 59. Which of the following is not a barrier to income shifting among family members? A. The assignment of income doctrine B. Net unearned income for children 18 and younger taxed at parents' marginal tax rates C. Elimination of preferential tax rates (on dividends and long-term capital gains) for dependents D. Two of these 60. The Olympians have three children. The kiddie tax applies to unearned income received by which of the following children? A. Poseidon is a 20-year-old full-time student who does not support himself. B. Demeter, a 23-year-old full-time student who supports herself with a job at a grocery store. C. Zeus is 20 years old and not a student. D. Two of these. E. None of these. 61. Assuming the kiddie tax applies, what amount of a child's income is subject to the kiddie tax? A. All of it B. All of the unearned income C. The net unearned income D. Taxable income less the standard deduction 62. During 2012, Montoya (age 15) received $2,200 from a corporate bond. He also received $600 from a savings account established for him by his parents. Montoya lives with his parents and he is their dependent. What is Montoya's taxable income? A. $0 B. $2,200 C. $2,800 D. $1,850 63. During 2012, Jasmine (age 12) received $2,400 from a corporate bond. She also received $600 from a savings account established for her by her parents. Jasmine lives with her parents and she is their dependent. Assuming her parents' marginal tax rate is 28%, what is Jasmine's gross tax liability? A. $0 B. $95 C. $308 D. $403 64. Hestia (age 17) is claimed as a dependent by her parents, Rhea and Chronus. In 2012, Hestia received $1,000 of interest income from a bond that she owns. In addition, she has earned income of $200. What is her taxable income for 2012? A. $0 B. $250 C. $700 D. $1,200 65. Montague (age 15) is claimed as a dependent by his parents Matt and Mary. In 2012, Montague received $5,000 of qualified dividends and he received $800 from a part time job. What is his taxable income for 2012? A. $100 B. $3,900 C. $4,700 D. $4,850 66. Hester (age 17) is claimed as a dependent by his parents, Charlton and Abigail. In 2012, Hester received $10,000 of qualified dividends and he received $6,000 from a part time job. What is his taxable income for 2012? A. $16,000 B. $15,050 C. $10,050 D. $9,700 67. The alternative minimum tax base is typically A. smaller than B. about the same as C. larger than D. exactly the same as the regular income tax base. 68. The computation of the alternative minimum tax base begins with regular taxable income. Which of the following is not part of the formula for computing the alternative minimum tax base? A. Subtract personal exemptions. B. Add the standard deduction amount if used for regular tax. C. Subtract the AMT exemption amount (if any). D. Add back tax exempt interest from a private activity bond not issued in 2009 or 2010. 69. In 2012, Maia (who files as a head of household) reported regular taxable income of $115,000. She itemized her deductions, deducting $8,000 in charitable contributions and $3,000 in state income taxes. She claimed exemptions for herself and her son, Hermes, ($3,800 each). What is Maia's alternative minimum taxable income? A. $118,000 B. $115,000 C. $118,800 D. $125,600 70. Which of the following items is not added back to regular taxable income in computing alternative minimum taxable income? A. Home mortgage interest expense. B. Real property taxes. C. Tax exempt interest from a private activity bond issued in 2007. D. Miscellaneous itemized deductions in excess of the 2% floor. 71. Which of the following statements regarding the AMT exemption amounts is not true? A. The amount of the exemption depends on the taxpayer's filing status. B. The exemption amount is completely phased-out for high income taxpayers. C. Taxpayers must choose whether they will claim the exemption or itemize deductions. D. None of these statements is false (all of these statements are true). 72. Persephone has a regular tax liability of $12,475 and a tentative minimum tax of $11,500. Given just this information, what is her alternative minimum tax liability for the year? A. $0 B. $11,500 C. $975 D. $12,475 73. Harmony reports a regular tax liability of $15,000 and tentative minimum tax of $17,000. Given just this information, what is her alternative minimum tax liability for the year? A. $0 B. $2,000 C. $15,000 D. $17,000 74. Which of the following statements accurately describes the alternative minimum tax rate(s)? A. The top AMT marginal rate is higher than the top regular tax marginal tax rate. B. The AMT rates represent a progressive tax rate structure. C. The AMT rate is the same rate for all taxpayers. D. None of these. 75. Which of the following is not typical of taxpayers who are most likely affected by the AMT? A. Have many dependents B. Pay high state income tax C. Pay high property taxes D. Have relatively low capital gains 76. Which of the following could explain why an increasing number of taxpayers are subject to (or could become subject to) AMT? A. Decreasing regular tax rates B. The AMT exemption amount is indexed to increase with inflation C. Property values are decreasing D. The personal and dependency exemption amounts are not increasing as fast as the AMT exemption is decreasing 77. Asteria earned a $25,500 salary as an employee in 2012. How much should her employer have withheld from her paycheck for FICA taxes (rounded to the nearest whole dollar amount)? A. $370 B. $1,071 C. $1,441 D. $3,392 78. Baker earned $113,300 of salary as an employee in 2012. How much should his employer have withheld from his paycheck for FICA taxes (rounded to the nearest whole dollar amount)? A. $1,643 B. $8,667 C. $6,267 D. $6,401 79. Hera had FICA taxes withheld on the $112,000 salary she received as an employee in 2012. Her husband, Zeus, made $70,000 as an employee at a Greek gyro stand. How much must Zeus have withheld for FICA taxes for 2012, assuming he files a joint return with Hera? A. $0 B. $1,015 C. $5,355 D. $3,955 80. Which of the following statements regarding FICA taxes is true? A. Low income employees are not required to pay FICA taxes. B. An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes. C The maximum amount of Medicare taxes an employee is required to pay is capped each year but the . maximum amount of Social Security taxes is not. D. The wage base limit for FICA taxes depends on the taxpayer's filing status. 81. Which of the following suggests that a working taxpayer is an independent contractor rather than an employee? A. Works for more than one firm B. May realize a loss from business activities C. Sets own working hours D. Works somewhere other than on employer premises E. All of these suggest independent contractor status 82. Which of the following statements best describes the deductions independent contractors may claim for valid business expenses? A. for AGI deductions B. from AGI deductions not subject to the two percent of AGI floor C. from AGI deductions subject to a two percent of AGI floor D. for AGI deductions limited to income from the business activities 83. The wage base for which of the following taxes is capped? A. Federal income B. Social Security C. Medicare D. Alternative minimum 84. Which of the following statements regarding the self-employment tax is most accurate? A The self-employment tax base is generally the taxpayer's net income from self-employment (usually . net income from Schedule C). B Taxpayers who report less than $600 of net income from self-employment (usually net income from . Schedule C) are not required to pay self employment taxes. C. The self-employment tax base is net earnings from self employment which is less than net income from self-employment. D. The Social Security tax limit does not apply to self-employment taxes. 85. Which of the following best describes the manner in which self-employed taxpayers may deduct selfemployment taxes? A. Deduct employer portion from AGI. B. Deduct entire amount from AGI. C. Deduct employer portion for AGI. D. Deduct entire amount for AGI. E. No deduction 86. For taxpayers who receive both salary as an employee and self-employment income as an independent contractor in the same year, which of the following statements regarding FICA and self-employment taxes is most accurate? A. The Social Security limit applies to the salary but not to the self-employment income. B. The Social Security limit applies to the self-employment income but not to the salary. C.Salary is first applied against the Social Security limit and then self-employment income is applied against the Social Security limit. D Self-employment income is first applied against the Social Security limit and then salary is applied . against the Social Security limit. 87. Which of the following statements concerning differences between employees and independent contractors is most accurate? A. Employees and independent contractors deduct business expenses as miscellaneous itemized deductions. B. While employees are typically eligible for nontaxable fringe benefits from employers, independent contractors are not. C Employers are required to withhold either FICA or self employment taxes from compensation paid to . employees and compensation paid to independent contractors. D. Employers typically withhold federal income taxes from compensation paid to employees and to independent contractors. 88. Which of the following statements concerning tax credits is true? A. The tax benefit a taxpayer receives from a credit depends on the taxpayer's marginal tax rate. B. Refundable tax credits are limited to a taxpayer's gross tax liability. C. Tax credits are generally more beneficial than tax deductions. D. None of these is a true statement. 89. Which of the following is not one of the general tax credit categories? A. Nonrefundable personal B. Refundable personal C. Business D. Refundable business 90. Which of the following statements regarding the child tax credit is false? A. The child for whom the credit is claimed must be under the age of 15 at the end of the year. B. The credit is subject to phase-out based on the taxpayer's AGI. C. The full credit for a child who qualifies is $1,000. D. The child for whom the credit is claimed must meet the definition of a qualifying child. 91. Quantitatively, what is the relationship between the AGI phase-out thresholds for the child tax credit? A. Head of household/Single = Married Filing Separately = Married Filing Jointly B. Head of household/Single < Married Filing Separately < Married Filing Jointly C. Head of household/Single = Married Filing Separately > Married Filing Jointly D. Head of household/Single > Married Filing Separately < Married Filing Jointly 92. Rhianna and Jay are married filing jointly in 2012. They have six children for whom they may claim the child tax credit. Their AGI was $123,440. What amount of child tax credit may they claim on their 2012 tax return? A. $5,300 B. $6,000 C. $12,000 D. $4,000 93. The amount of expenditures eligible for the child and dependent care credit is the least of three amounts. Which of the following is not one of those amounts? A. The total amount of child and dependent care expenditures for the year B. $3,000 for one qualifying person or $6,000 for two or more qualifying persons C. The dependent's earned income for the year D. The taxpayer's earned income for the year 94. Which of the following statements regarding the child and dependent care credit is false? A. Taxpayers may claim a credit for only a portion of qualifying dependent care expenditures. B. If a taxpayer's income is too high, she will be ineligible to claim any child and dependent care credit. C. A single taxpayer must have earned income to claim any child and dependent care credit. D. A taxpayer is not eligible to claim the dependent care credit if any dependent relative provides the care. 95. Trudy is Jocelyn's friend. Trudy looks after Jocelyn's four-year-old son during the day so Jocelyn can go to work. During the year, Jocelyn paid Trudy $4,000 to care for her son. What is the amount of Jocelyn's child and dependent care credit if her AGI for the year was $30,000? A. $0 B. $810 C. $1,080 D. $3,000 96. Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home everyday). Since Judy is a relative, Kaelyn made sure, for tax purposes, to pay her mother the going rate for child care ($6,300 for the year). What is the amount of Kaelyn's child and dependent care credit if her AGI for the year was $36,000? A. $1,440 B. $2,100 C. $6,000 D. $0 97. Which of the following statements regarding the child and dependent care credit is true? A. A married couple must file jointly to claim the credit. BA taxpayer may claim a credit for dependent care expenses for a dependent who is 14 years old or older . but only if the dependent lives in the taxpayer's home for the entire year. CAll else equal, a taxpayer making qualifying expenditures for three children may claim more dependent . care credit than a taxpayer making (the same amount of) qualifying expenditures for two children. D. None of these statements is true. 98. Which the of following is not true of the American opportunity credit? A. A taxpayer with multiple eligible dependents can claim a credit for each dependent's qualifying expenses B. The credit is available for students during their first four years of postsecondary education only C. It is phased out based on the taxpayer's AGI D. A taxpayer may not claim a credit unless the taxpayer pays a dependent's qualifying educational expenses 99. Which of the following is not true of the lifetime learning credit? A. It is a nonrefundable credit. B The credit can be claimed by taxpayers who have graduated from college and are taking professional . training courses to improve their job skills. C. A taxpayer with multiple dependents can claim a credit for each dependent's qualifying expenses. D. The credit is subject to phase out based on the taxpayer's AGI. 100.Which of the following is not a true statement about the American opportunity credit (AOC) and lifetime learning credits? A. A taxpayer may not report both an AOC and a lifetime learning credit on the same tax return. BCertain educational expenses qualify for both credits but taxpayers must claim one credit or the other . for the expenditures (the taxpayer can not claim both credits for the same expenditures). CTaxpayers may choose to either (1) deduct qualifying education expenses of an individual as for AGI . deductions or claim educational credits for the individual's expenses (but not both). D.The AGI phase-out threshold for phasing out the AOC is higher than the AGI phase-out threshold for the lifetime learning credit. 101.Which of the following statements regarding the earned income credit is true? A. It is a nonrefundable credit B. A taxpayer with more earned income may receive more credit than a taxpayer with less earned income C. A 70-year-old taxpayer with no dependents can qualify for the credit in certain circumstances D. A taxpayer whose only source of income is interest from corporate bonds is eligible for the credit 102.Which of the following does not affect the amount of the earned income credit? A. Filing status B. Amount of credit taken in previous years C. Number of qualifying children D. Taxpayer's AGI 103.Carolyn has an AGI of $38,000 (all from earned income), two qualifying children, and is filing as a head of household. What amount of earned income credit is she entitled to? A. $0 B. $832 C. $3,860 D. $4,404 E. $5,236 104.Which of the following statements regarding credits is correct? A. Business expenses are generally refundable credits B. Business credits that are generated in one year but are not utilized in that year expire C Business credits that are generated in one year but are not utilized in that year may be carried forward . to future years but not back to a prior year D Business credits that are generated in one year but are not utilized in that year may be carried back to . the previous year and then forward to future years 105.If there is not enough gross tax liability to use the foreign tax credit, A. it expires unused B. it is carried back 2 years or forward 20 years C. it is carried back 3 years or forward 5 years D. it is carried back 1 year or forward 10 years . 106.Which of the following tax credits is fully refundable? A. American opportunity credit B. Dependent care credit C. Earned income credit D. None of these 107.How could an individual obtain a business tax credit? A. Through self-employment activities B. Through flow-through from a partnership or S corporation C. By working overseas and obtaining a foreign tax credit D. All of these 108.Which of the following represents the correct order in which credits are applied to gross tax liability (from first to last)? A. Nonrefundable personal, business, refundable B. Business, nonrefundable personal, refundable C. Refundable, nonrefundable personal, business D. Refundable, business, nonrefundable personal 109.Cassy reports a gross tax liability of $1,000. She also claims $400 of nonrefundable personal credits, $700 of refundable personal credits, and $200 of business credits. What is Cassy's tax refund or tax liability due after applying the credits? A. $1,000 taxes payable B. $0 refund or taxes payable C. $700 refund D. $300 refund 110.Sheryl's AGI is $200,000. Her current tax liability is $52,068. Last year, her tax liability was $48,722. She will not owe underpayment penalties if her total estimated tax payments are at least which of the following (rounded) amounts (assume she makes the required payments each quarter)? A. $46,861 B. $48,722 C. $51,547 D. $53,594 111.If an employer withholds taxes from an employee, in general, when are these taxes treated as paid to the IRS? A. As withheld B. As the employee requests on his/her W - 4 form C. Evenly throughout the year D. On April 15 112.Which of the following statements about estimated tax payments and underpayment penalties is true for individual taxpayers? A. Taxpayers who have paid their full tax liability by the original tax return due date are protected from underpayment penalties. B. Taxpayers who have paid their full tax liability by the extended tax return due date are protected from underpayment penalties. C Taxpayers who have uneven income streams can pay estimated tax quarterly in uneven amounts and . not be susceptible to underpayment penalties. D Taxpayers who have paid their required amount of estimated tax, even though not on time, are . protected from underpayment penalties. 113.Which of the following statement(s) concerning estimated tax payments and underpayment penalties for individuals is (are) true? A. Whether taxpayers are subject to underpayment penalties is determined on a quarterly basis. BDue dates for estimated tax payments for a given year are April 15, June 15, September 15 of that year . and January 15 of the next year unless these dates fall on a weekend or a holiday. C. The amount of penalty depends on the amount of the underpayment among other factors. D. All of these statements are true. 114.What happens if the taxpayer owes an underpayment penalty, but does not compute it on Form 2210? A. Nothing, unless the taxpayer is audited B. The taxpayer is immediately sent to the Tax Court C. The IRS will compute and assess the penalty D. The penalty is increased by five percentage points 115.Happy, Sleepy, Grumpy, and Doc all did not make adequate estimated payments. Which of them will not owe underpayment penalties for 2012 given the following information? A. Happy B. Sleepy C. Grumpy D. Doc E. Two of these F. None of these 116.Taxpayers are not required to file a tax return unless their gross income passes a certain threshold. This threshold is generally the . A. applicable standard deduction amount B. personal exemption amount C. twice the applicable standard deduction amount D. applicable standard deduction amount plus the personal exemption amount 117.Why would a taxpayer file a tax return if not required to do so? A. to remain in favor with the IRS B. to claim a refund of taxes paid C. all taxpayers are required to file returns D. in order to claim the standard deduction 118.Looking at the following partial calendar for April, when will individual tax returns be due? A. Friday, April 14 B. Saturday, April 15 C. Sunday, April 16 D. Monday, April 17 E. Tuesday, April 18 119.Which of the following is not true of the extension to file an individual tax return? A. It is granted automatically by the IRS if requested B. It must be requested by the original due date of the return C. It extends the due date for the return and associated tax payments beyond the original due date of the tax return D. The extension is for six months beyond the original due date 120.Which of the following taxpayers (all age 40) are required to file a return? A. Jenny and Jim B. Allen C. Timmy D. None of these 121.What is the underpayment penalty rate that taxpayers pay when they underpay their estimated taxes? A. Federal short-term interest rate. B. Federal short-term interest rate plus three percentage points. C. Federal long-term interest rate. D. Zero. The government does not pay interest on overpayments. 122.Which of the following statements regarding late filing penalties is true? A. If a taxpayer fails to file a tax return, the late filing penalty will continue to grow until the taxpayer files the tax return. B. The amount of the late filing penalty is the same for both fraudulent failure to file and non fraudulent failure to file. C. Taxpayers who owe no tax as of the due date of their tax returns are not subject to late filing penalties even if they file late. D. None of these. 123.Which of the following statements regarding late filing penalties and/or late payment penalties is true? A An extension of time to file the tax return protects a taxpayer from late payment penalties as long as the . tax is paid by the extended due date of the return. B. The penalty rate for late filing penalties is less than the penalty rate for late payment penalties. CIf a taxpayer has not paid the full tax liability by the original due date of the return and the taxpayer has . not filed a tax return by the due date of the return, the maximum late filing and late payment penalty will be no greater than the late filing penalty by itself. D. None of these. 124.Jocelyn, a single taxpayer, had $742,000 of taxable income in 2012. All of the income is ordinary. What is her tax liability for the year? 125.Paul and Melissa plan on filing jointly in 2012. For the year, the couple reported taxable income of $130,000. What is their gross tax liability? 126.Maria and Tony are married. They are preparing to file their 2012 tax return. If they were to file as single taxpayers, Maria and Tony would report $40,000 and $60,000 of taxable income, respectively. On their joint tax return, their taxable income is $100,000. How much of a marriage penalty or benefit will Maria and Tony experience in 2012? 127.Maria and Tony are married. They are preparing to file their 2012 tax return. If they were to file as single taxpayers, Maria and Tony would report $10,000 and $70,000 of taxable income, respectively. On their joint tax return, their taxable income is $80,000. How much of a marriage penalty or benefit will Maria and Tony experience in 2012? 128.In 2012, Athena reported $35,850 of taxable income. Of this, $30,000 came from her work at the local library and the remaining $5,000 was from capital gains to be taxed at preferential rates. Compute her tax liability for 2012 as a single taxpayer. 129.Hera wants to reduce her income tax liability by shifting some of her income to her 10-year-old daughter (a dependent), Athena. Last year, Hera gifted corporate bonds to Athena. This year, Athena received $1,500 in interest income from the bonds. What amount of tax will Athena pay on the interest income? 130.Max is a 14-year-old dependent of his parents. During 2012, Max earned $1,800 working part time jobs and he received $1,500 of interest income from corporate bonds that were given to him last year. What is Max's 2012 taxable income? 131.Pyrrha, a 12-year-old dependent of Epimetheus and Pandora, received $2,000 of interest income in 2012. Her parents' marginal tax rate is 35%. What is Pyrrha's gross tax liability for the year? 132.Candace is claimed as a dependent on her parent's tax return. Her parents' ordinary income marginal tax rate is 33%. In 2012, Candace received $5,000 of interest income from corporate bonds she obtained several years ago. This is her only source of income. She is 15 years old at year end. What is her gross tax liability? 133.Jerusha is married and she files a separate tax return in 2012. She claims two exemptions (2 x 3,800 = $7,600). She claimed the standard deduction for regular tax purposes ($5,950). She had no other adjustments. Her regular taxable income was $68,000. What is Jerusha's AMTI? 134.Apollo is single and his AMT base is $100,250. This amount includes $500 of qualified dividends (the dividends were taxed at 15% in determining the regular tax liability). What is Apollo's tentative minimum tax? 135.Costa is a single taxpayer. His regular tax liability was $38,000. For 2012, he reported $190,000 of alternative minimum taxable income. What is his alternative minimum tax? [Use 2011 AMT Exemption amount] 136.Selene made $54,300 in 2012 working at the local burger joint, Moon Caf. How much should her employer withhold from her paycheck for FICA taxes if the calculation is made cor rectly? 137.Jackson earned a salary of $124,000 in 2012. What amount of FICA taxes should Jackson's employer withhold from his paycheck? 138.Harmony was self-employed for the first half of 2012, earning $18,000 of Schedule C (business) net income. During the second half of the year, she began working as an employee and earned $38,000 in salary. What amount of self-employment taxes is Harmony required to pay? 139.Lexa worked as an employee during the first half of the year earning $65,000 of salary. In th e second half of the year, she was self-employed and she reported $120,000 of self-employment income on her Schedule C. What amount of self-employment taxes is Lexa required to pay? 140.Atlas earned $17,300 from his sole proprietorship in 2012. This was his only source of income. How much in self-employment taxes will Atlas be able to deduct? 141.Demeter is a single taxpayer. Her AGI in 2012 is $81,200. Demeter may claim a child tax credit for her daughter Persephone. What amount of child tax credit is Demeter entitled to claim after any applicable phase-out? 142.Jack paid $5,000 in daycare expenses for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit? 143.Wolfina's twins, Romulus and Remus, finished their first year of school at an accredited university in 2012. She paid $10,000 in qualified educational expenses for Romulus and $2,000 of qualifying expenses for Remus. Wolfina is a head of household with an AGI of $85,000. What amount of American opportunity credit may she claim? 144.Akiko and Hitachi (married filing jointly for 2012) are both educators. They attended a conference to further their job-related skills. Tuition for the conference was $2,000 for each person. Their AGI was $110,000. How much lifetime learning credit can they claim? 145.Julien and Sarah are married, file a joint return, and have two children, Kaya and Christopher. Kaya just finished her third year at college and Christopher just finished his first year of graduate school (fifth year of college). Tuition and books for the past year were $1,800 for Kaya and $5,000 for Christopher. How much can Julien and Sarah claim in educational credits if their joint AGI was $116,000 for 2012? 146.Sam is 30 years old. In 2012, he reported an AGI of $12,000, all from his job as a server at the local caf. He is single and has no dependents. What amount of earned income credit may he claim in 2012? 147.In 2012, John (52 years old) files as a head of household with one 18-year old dependent (qualifying) child. John is eligible to claim a $700 American opportunity credit for the year. John did not have any taxes withheld by his employer during the year and he did not make any estimated tax pa yments. After taking credits into account, what is the amount of John's taxes payable or refund assuming that his AGI is $26,000 (all from salary) and his taxable income is $10,350? 148.Clarissa's gross tax liability for 2012 is $1,300. She has a $1,500 nonrefundable personal tax credit, a $750 business tax credit, and a $400 refundable personal tax credit. Her employer withheld $1,000 from her pay for taxes. What is her net tax due or refund for this year? 149.In 2012, Shawn's AGI is $170,000. He earned the income evenly throughout the year. He owed $24,900 in federal income tax plus alternative minimum tax of $263, and self-employment taxes of $2,590. Last year, he had a gross tax liability of $50,000. What is the minimum quarterly estimated tax payment Shawn must pay each quarter to avoid underpayment penalties for 2012? 150.Johann had a gross tax liability of $22,508 in 2012 and $21,000 in 2011, but his employer only withheld $19,500. Calculate his under/overpayment in each quarter for 2012 tax purposes. 151.Assume Georgianne underpaid her estimated tax liability by $150 in the first quarter, $500 in the second quarter, $400 in the third quarter, and $200 in the fourth quarter. Calculate her underpayment penalty for the year, assuming the federal short-term interest rate is five percent. 152.Keith and Nicole are married filing joint with two daughters who qualify as dependents. Their gross income for 2012 is $21,000. Are they required to file a tax return? How do you know this without memorizing the gross income thresholds? In 2012, the standard deduction for taxpayers filing a joint return is $11,900 and the personal exemption is $3,800. 153.During all of 2012, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2012. Neither is blind, and both are under age 65. They reported the following tax-related information for the year A. What is the Clays' taxes payable or (refund due) (ignore the alternative minimum tax)? B. What is the Clays' tentative minimum tax and alternative minimum tax? ch07 Key 1. FALSE 2. FALSE 3. TRUE 4. FALSE 5. TRUE 6. FALSE 7. FALSE 8. FALSE 9. TRUE 10. TRUE 11. FALSE 12. TRUE 13. FALSE 14. FALSE 15. TRUE 16. FALSE 17. FALSE 18. TRUE 19. TRUE 20. FALSE 21. FALSE 22. TRUE 23. FALSE 24. FALSE 25. FALSE 26. TRUE 27. FALSE 28. TRUE 29. FALSE 30. FALSE 31. TRUE 32. FALSE 33. FALSE 34. TRUE 35. FALSE 36. FALSE 37. TRUE 38. FALSE 39. TRUE 40. FALSE 41. FALSE 42. FALSE 43. TRUE 44. TRUE 45. TRUE 46. TRUE 47. FALSE 48. FALSE 49. FALSE 50. E 51. B 52. A 53. C 54. C 55. B 56. D 57. C 58. B 59. C 60. A 61. C 62. D 63. D 64. B 65. C 66. C 67. C 68. A 69. D 70. A 71. C 72. A 73. B 74. B 75. D 76. A 77. C 78. C 79. D 80. B 81. E 82. A 83. B 84. C 85. C 86. C 87. B 88. C 89. D 90. A 91. D 92. A 93. C 94. B 95. B 96. A 97. A 98. D 99. C 100. A 101. B 102. B 103. B 104. D 105. D 106. C 107. D 108. A 109. D 110. A 111. C 112. C 113. D 114. C 115. E 116. D 117. B 118. E 119. C 120. A 121. B 122. C 123. C Feedback: $112,683.50 + 35% x ($742,000 - $388,350) 124. $236,461, computed using the single tax rate schedule as follows: Feedback: $9,735 + 25% x ($130,000 - $70,700) 125. $24,560, computed as follows: 3. $4,867.50 + 25% x ($60,000 - $35,350) = $11,030 2. $4,867.50 + 25% x ($40,000 - $35,350) = $6,030 1. $9,375 + 25% x ($100,000 - $70,700) = $17,060 Feedback: Answer computed as follows: 126. No marriage penalty or benefit. 3 $4,867.50 + 25% x ($70,000 - $35,350) = $13,530 2 $870 + 15% x ($10,000 - $8,700) = $1,065 1 $9,735 + 25% x ($80,000 - $70,700) = $12,060 Feedback: Answer computed as follows: 127. Filing jointly will result in a "marriage benefit" of $2,535. Feedback: Answer computed as follows: 128. $4,267.50. Feedback: Because the kiddie tax only potentially applies when unearned income exceeds $1,900. Here Athena's taxable income i s $550 ($1,500 minus $950 standard deduction). Athena is not entitled to an exemption amount because she is Hera's dependent. Athena's tax o n $550 of taxable income is $55 ($550 x 10%). 129. $55. Feedback: This consists of gross income (and adjusted gross income of $3,300 minus a standard deduction of $2,100 [greater of (1) $950 or (2) $300 plus $1,800 earned income]. 130. $1,200. Feedback: Answer computed as follows: 131. $130. Feedback: Answer computed as follows: 132. $1,118. Feedback: Answer computed as follows: 133. $81,550 Feedback: Answer computed as follows: 134. $26,010. Costa's AMT base is $190,000 minus $29,075 exemption [$48,450 - 25% x ($190,000 - 112,500)] = $160,925. Costa's tentative minimum tax is $41,841 ($160,925 x 26%). Consequently, his alternative minimum tax is $3,841 ($41,841 tentative minimum tax minus $38,000 regular tax liability). Feedback: Answer computed as follows: 135. $3,841. Feedback: ($54,300 x 5.65%) 136. $3,068. Feedback: Answer computed as follows: 137. $6,422. Feedback: Answer computed as follows: 138. $2,211. Feedback: Answer computed as follows: 139. $7,904. Feedback: Answer computed as follows: $17,300 x 92.35% x 13.3% x .5751% 140. $1,222. Phase-out is $350, computed as follows: Feedback: $1,000 - 350 phase-out (see below). 141. $650. Feedback: Answer computed as follows: 142. $690. Feedback: Answers computed as follows: 143. $2,250. Feedback: Answer computed as follows: 144. $560. Feedback: Answer computed as follows: 145. $2,200. Feedback: Answer computed as follows: 146. $151. Earned income credit computation Feedback: Answer computed as follows: 147. Refund of $1,410. Feedback: Answer computed as follows: 148. Refund of $1,400. Feedback: Answer computed as follows: 149. $6,245. Feedback: Answer computed as follows: 150. Underwitheld by $189, $379, $568, and $757 in the 1 st, 2nd, 3rd, and 4th quarters, respectively. Feedback: Answer computed as follows: 151. $25 ($3 + $10 + $8 + $4). Feedback: This is apparent knowing only the standard deduction and personal exemption amounts. Their gross income of $21,000 is greater than the standard deduction for married filing a joint return ($11,900) and two personal exemptions ($3,800 x 2 )the sum of these ($19,500) is the threshold. The fact that they have two children does not affect the gross income threshold amount. 152. Yes, Keith and Nicole are required to file. Feedback: Answer computed as follows: B. Tentative minimum tax is $6,513; AMT is $0 (regular tax liability > tentative minimum tax liability). Child tax credit phase-out is $250, computed as follows: Feedback: Answer computed as follows: 153. A. Tax refund is $1,875. ch07 Summary Category AACSB: Analytic AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Analyze Blooms: Apply Blooms: Remember Learning Objective: 07-01 Determine a taxpayers regular tax liability and identify tax issues associated with the process. Learning Objective: 0702 Compute a taxpayers alternative minimum tax liability and describe the tax characteristics of taxpayers most likely to owe the al ternative minimum tax. Learning Objective: 07-03 Calculate a taxpayers employment and selfemployment taxes payable and explain tax considerations relating to whether a taxpayer is considered to be an employee or a self employed independent contractor. Learning Objective: 074 Describe the different general types of tax credits; identify specific tax credits; and compute a taxpayers allowable child tax cre dit; child and dependent care credit; American opportunity credit; lifetime learning credit; and earned income credit. Learning Objective: 075 Explain taxpayer filing and tax payment requirements and describe in general terms how to compute a taxpayers underpayment; late filing; and late payment penalties. Level of Difficulty: 1 Easy # of Questions 60 124 153 53 11 127 36 23 25 45 24 Level of Difficulty: 2 Medium Level of Difficulty: 3 Hard 66 76 11 Spilker - Chapter 07 153

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Michigan State University - MKT - 351
T. OMI CHANNEL...A term being used by some retailers to express that catalog,store and on-line are operating as one system to benefit and service thecustomer.U. FAIR TRADE RETAILING. A movement and philosophy in retailing whereby theentire distr
MIT - ECON - 14.48J
period covered. (You can assume that once aschool becomes enrolled, it stays with the program for 5 years.) You want toestimate the effect of participation in PEC on a school’s dropout rate.a. (5 points) Someone suggests that you look at the 17
Texas A&M - ACCT - 405
ch08Student:1.The Internal Revenue Code authorizes deductions for trade or business activities if the expenditureis &quot;ordinary and necessary&quot;.True False2.Business activities are distinguished from personal activities in that business activities are
Texas A&M - ACCT - 405
ch09Student:1.Like financial accounting, most business property must be capitalized for tax purposes.True False2.Tax cost recovery methods include depreciation, amortization, and depletion.True False3.If a business mistakenly claims too little de
Texas A&M - ACCT - 405
ch10Student:1.The amount realized is the sale proceeds less the adjusted basis.True False2.Generally, the amount realized is everything of value received in a sale less selling expenses.True False3.The adjusted basis is the cost basis less cost r
Texas A&M - ACCT - 405
ch11Student:1.Generally, interest income is taxed at preferential capital gains rates and dividend income is taxed atordinary rates.True False2.Interest earned on U.S. savings bonds is interest received at sale or maturity but must be taxedannuall
Texas A&M - ACCT - 405
ch12Student:1.Current compensation is usually comprised of salary, wages, and bonuses.True False2.Employees complete a Form W-2 to specify their income tax withholding.True False3.Employers computing taxable income receive a deduction for salary
Texas A&M - ACCT - 405
CH13Student:1.Qualified retirement plans include defined benefit plans but not defined contribution plans.True False2.Defined benefit plans specify the amount of benefit an employee will receive on retirement while definedcontribution plans specify
Texas A&M - ACCT - 405
CH14Student:1.In general terms, the tax laws favor taxpayers who own a principal residence relative to those who rent aprincipal residence.True False2.Renting a residence may have nontax advantages over owning a home.True False3.A personal resid
Texas A&M - ACCT - 405
CH15Student:1.Corporations are legally formed by filing articles of organization with the state in which the corporationwill be created.True False2.General partnerships are legally formed by filing a partnership agreement with the state in which th
Texas A&M - ACCT - 405
CH16Student:1.In general, a corporation can choose to use either the accrual or cash method of accounting no matter howlarge the corporation.True False2.Corporations calculate adjusted gross income (AGI) in the same way as individuals.True False3
Texas A&M - ACCT - 405
ch17Student:1.ASC 740 governs how a company accounts for all taxes it incurs.True False2.ASC 740 is the sole source of rules related to accounting for income taxes.True False3.Temporary differences create either a deferred tax asset or a deferred
Texas A&M - ACCT - 405
ch18Student:1.The &quot;double taxation&quot; of corporate income refers to the fact that corporate income is taxed at both theentity-level and the shareholder-level.True False2.A distribution from a corporation to a shareholder will always be treated as a d
Texas A&M - ACCT - 405
ch19Student:1.Gain or loss is always recognized when realized for tax purposes.True False2.Generally, before gain or loss is realized for tax purposes, the taxpayer must engage in a transaction.True False3.A taxpayer's tax basis in property alway
Texas A&M - ACCT - 405
ch20Student:1.Income earned by flow-through entities is usually taxed once at the entity level.True False2.Partnerships tax rules incorporate both the entity and aggregate approaches.True False3.The term &quot;outside basis&quot; refers to the partnership'
Texas A&M - ACCT - 405
ch21Student:1.Jason is a 25% partner in the JJM Partnership when he sells his entire interest to Lavelle for $76,000. Atthe time of the sale, Jason's basis in JJM is $87,000. JJM does not have any debt or hot assets. Jason's willrecognize a gain of $
Texas A&M - ACCT - 405
ch22Student:1.S corporations offer the same legal protection to owners as C corporations.True False2.The S corporation rules are less complex for S corporations that have earnings and profits from prior Ccorporation years than for S corporations th
Texas A&M - ACCT - 405
ch23Student:1.The primary purpose of state and local taxes is to raise revenue to finance state and local government.True False2.All states employ some combination of sales and use tax, income or franchise tax, or property tax.True False3.State t
Texas A&M - ACCT - 405
ch24Student:1.&quot;Outbound taxation&quot; deals with the U.S. tax rules that apply to U.S. persons doing business outside theUnited States.True False2.Amy is a U.S. citizen. During the year she earned income from an investment in a French company. Amywill
Texas A&M - ACCT - 405
ch25Student:1.The amount of the estate tax is directly related to the amount of taxable gifts.True False2.The Federal transfer taxes are calculated using cumulative lifetime transfers.True False3.An exemption equivalent is the amount of annual gi
Texas A&M - ACCT - 405
Problem 771. Compute MM's current income tax expense or benefit for 2012Income before income taxesInterest from municipal bondsNondeductible M&amp;EDPADNondeductible finesBook equivalent of taxable incomeNet change in cumulative TTDNet change in cumu
Texas A&M - ACCT - 405
Problem 781. Compute TCFs current income tax expense or benefit for 2012Income before income taxesInterest from municipal bondsNondeductible stock compensationDPADNondeductible finesBook equivalent of taxable incomeNet change in cumulative TTDNet
Texas A&M - ACCT - 405
Chapter 1 - An Introduction to TaxChapter 01An Introduction to TaxSOLUTIONS MANUALDiscussion Questions(1)[LO1] Jessicas friend Zachary once stated that he couldnt understand whysomeone would take a tax course. Why is this a rather nave view?Taxes
Texas A&M - ACCT - 405
Chapter 2 - Tax Compliance, the IRS, and Tax AuthoritiesChapter 02Tax Compliance, the IRS, and Tax AuthoritiesSOLUTIONS MANUALDiscussion Questions(1)[LO1] Name three factors that determine whether a taxpayer is required to file atax return.Filing
Texas A&M - ACCT - 405
Chapter 3 - Tax Planning Strategies and Related LimitationsChapter 03Tax Planning Strategies and Related LimitationsSOLUTIONS MANUALDiscussion Questions(1)[LO1] The goal of tax planning is to minimize taxes. Explain why thisstatement is not true.I
Texas A&M - ACCT - 405
Chapter 4 - Individual Income Tax OverviewChapter 04Individual Income Tax OverviewSOLUTIONS MANUALDiscussion Questions1.[LO 1] How are realized income, gross income, and taxable income similar, andhow are they different?Realized income is more bro
Texas A&M - ACCT - 405
Chapter 5 - Gross Income and ExclusionsChapter 05Gross Income and ExclusionsSOLUTIONS MANUALDiscussion Questions1.[LO 1] Based on the definition of gross income in 61 and related regulations, what is thegeneral presumption regarding the taxability
Texas A&M - ACCT - 405
Chapter 7 - Individual Income Tax Computation and Tax CreditsChapter 07Individual Income Tax Computation and Tax CreditsSOLUTIONS MANUALDiscussion Questions1. [LO 1] What is a tax bracket? What is the relationship between filing status and the width
Texas A&M - ACCT - 405
Chapter 8 - Business Income, Deductions, and Accounting MethodsChapter 08Business Income, Deductions, and Accounting MethodsSOLUTION MANUALDiscussion Questions1.[LO 1] What is an ordinary and necessary business expenditure?Ordinary and necessary im
Texas A&M - ACCT - 405
Chapter 9 - Property Acquisition and Cost RecoveryChapter 09Property Acquisition and Cost RecoverySOLUTIONS MANUALDiscussion Questions1.[LO 1] Explain the reasoning why the tax laws require the cost of certain assets to becapitalized and recovered
Texas A&M - ACCT - 405
Chapter 10 - Property DispositionsChapter 10Property DispositionsSOLUTIONS MANUALDiscussion Questions1. [LO 1] Compare and contrast different ways in which a taxpayer triggers a realizationevent by disposing of an asset.A realization event for tax
Texas A&M - ACCT - 405
Chapter 11 - InvestmentsChapter 11InvestmentsSOLUTIONS MANUALDiscussion Questions1. [LO 1] Describe how interest income and dividend income are taxed. What are thesimilarities and differences in their tax treatment?Because they are cash method taxp
Texas A&M - ACCT - 405
Chapter 12 - CompensationChapter 12CompensationSOLUTIONS MANUALDiscussion Questions:1. [LO 1] Shane is an employee who has had a relatively consistent income over theyears. His withholding is pretty much right on target with his actual tax liability
Texas A&M - ACCT - 405
Chapter 13 - Retirement Savings and Deferred CompensationChapter 13Retirement Savings and Deferred CompensationSOLUTIONS MANUALDiscussion Questions1. [LO 1, 2] How are defined benefit plans different from defined contribution plans? How arethey simi
Texas A&M - ACCT - 405
Chapter 14 - Tax Consequences of Home OwnershipChapter 14Tax Consequences of Home OwnershipSOLUTIONS MANUALDiscussion Questions1. [LO 1] How does a taxpayer determine whether a dwelling unit is treated as a residence ornonresidence for tax purposes?
Texas A&M - ACCT - 405
Chapter 15 - Entities OverviewChapter 15Entities OverviewSOLUTIONS MANUALDiscussion Questions1. [LO 1] What are the more common legal entities used for operating a business? How arethese entities treated similarly and differently for state law purpo
Texas A&M - ACCT - 405
Chapter 16 - Corporate OperationsChapter 16Corporate OperationsSOLUTIONS MANUALDiscussion Questions1. (LO 1) In general terms, identify the similarities and differences between the corporate taxableincome formula and the individual taxable income fo
Texas A&M - ACCT - 405
Chapter 17 - Accounting for Income TaxesChapter 17Accounting for Income TaxesSOLUTIONS MANUALDiscussion Questions1. [LO 1] Identify some of the reasons why accounting for income taxes is complex.Answer: U.S. tax laws are complex and ambiguous. A c
Texas A&M - ACCT - 405
Chapter 18 - Corporate Taxation: Nonliquidating DistributionsChapter 18Corporate Taxation: Nonliquidating DistributionsSOLUTIONS MANUAL1.[LO1] What is meant by the term double taxation of corporate income?The term double taxation refers to the fact
Texas A&M - ACCT - 405
Chapter 19 - Corporate Formation, Reorganization, and LiquidationChapter 19Corporate Formation, Reorganization, and LiquidationSOLUTIONS MANUALDiscussion Questions1.[LO 1] Discuss the difference between gain realization and gain recognition in a pro
Texas A&M - ACCT - 405
Chapter 20 - Forming and Operating PartnershipsChapter 20Forming and Operating PartnershipsSOLUTIONS MANUALDiscussion Questions:1. [LO 1] What is a flow-through entity, and what effect does this designation haveon how business entities and their own
Texas A&M - ACCT - 405
Chapter 21 - Dispositions of Partnership Interests and Partnership DistributionsChapter 21Dispositions of Partnership Interests and Partnership DistributionsSOLUTIONS MANUALDiscussion Questions1. [LO 1] Joey is a 25% owner of Loopy LLC. He no longer
Texas A&M - ACCT - 405
Chapter 23 - State and Local TaxesChapter 23State and Local TaxesSOLUTIONS MANUALDiscussion Questions1. [LO 1] Why do states and local jurisdictions assess taxes?The primary purpose of state and local taxes is to raise revenue to finance stategover
Texas A&M - ACCT - 405
Chapter 24 - The U.S. Taxation of Multinational TransactionsChapter 24The U.S. Taxation of Multinational TransactionsSOLUTIONS MANUALDiscussion Questions1. (LO 1) Distinguish between an outbound transaction and an inbound transaction from a U.S.tax
Texas A&M - ACCT - 405
Chapter 25 - Transfer Taxes and Wealth PlanningChapter 25Transfer Taxes and Wealth PlanningSOLUTIONS MANUALDISCUSSION QUESTIONS1.[LO 1] Identify the features common to the gift tax formula and the estate tax formula.The integration of the estate an
Texas A&M - ACCT - 405
706(Rev. August 2011)United States Estate (and Generation-SkippingTransfer) Tax ReturnDepartment of the TreasuryInternal Revenue ServiceEstate of a citizen or resident of the United States (see instructions). To be filed fordecedents dying after De
Texas A&M - ACCT - 405
Form709United States Gift (and Generation-Skipping Transfer) Tax ReturnOMB No. 1545-0020(For gifts made during calendar year 2010)2010Department of the TreasuryInternal Revenue ServiceSee separate instructions.1 Donors first name and middle initi
Texas A&M - ACCT - 405
Texas A&M - ACCT - 405
Texas A&M - ACCT - 405
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Anderson University SC - PSYCHOLOGY - 2
Kazakhstan Institute of Management, Economics and Strategic ResearchSCHOOL OF GENERAL EDUCATIONMIDTERMGEN 1030INTRODUCTION TO ENVIRONMENTAL STUDIESSeptember 29, 2011Section # _Fall 2011Instructor: _Students Surname_ID #_Please read the followi
Anderson University SC - PSYCHOLOGY - 2
Kazakhstan Institute of Management, Economics and Strategic ResearchSCHOOL OF GENERAL EDUCATIONMIDTERMGEN 1030INTRODUCTION TO ENVIRONMENTAL STUDIESSeptember 29, 2011Section # _Fall 2011Instructor: _Students Surname_ID #_Please read the followi
Anderson University SC - PSYCHOLOGY - 2
Kazakhstan Institute of Management, Economics and Strategic ResearchSCHOOL OF GENERAL EDUCATIONMIDTERMGEN1030INTRODUCTION TO ENVIRONMENTAL STUDIESSeptember 29, 2011Section # _Fall 2011Instructor_Students Surname_ID #_Please read the following e
Anderson University SC - PSYCHOLOGY - 2
Final Exam (40 pts)A. Multiple-choice questions (0.5 pts x 30 = 15 pts)1. _ emphasizes the idea that all creatures have equal rights andvalues, being centred on nature rather than humans.A) anthropocentrismB) biocentrismC) conservationD) environmen
Anderson University SC - PSYCHOLOGY - 2
Final Exam (40 pts)1. Multiple-choice questions (0.5 pts x 30 = 15 pts)1. Sustainable development is most closely related to which idea?A) utilitarian conservationB) biocentric preservationC) modern environmentalismD) global environmentalism2. All
Anderson University SC - PSYCHOLOGY - 2
1. Ecology is the science that studies:A) pollution of the environmentB) life on our planetC) interaction between the organisms and the environmentD) global changes2. _ implies that only humans are morally significant, and nature is an instrumentfor
UCLA - CHEM - 20B
CHEM 20B Winter 2013Homework Set #1Due: Wed. Jan. 16, 2013 at 10:00 amInstructions: Show all of your work and provide numerical answers for physicalquantities with appropriate units and significant figures.Read Oxtoby Chapter 9OWL Simulations Chapte
UCLA - CHEM - 20B
CHEM 20B Winter 2013Homework Set #2Due: Wed. Jan. 23, 2013 at 10:00 amInstructions: Show all of your work and provide numerical answers for physicalquantities with appropriate units and significant figures.Read Oxtoby Chapter 10OWL Simulations Chapt
UCLA - CHEM - 20B
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UCLA - CHEM - 20B
CHEM 20B Winter 2013Homework Set #5Due: Wed. Feb. 13, 2013 at 10:00 amInstructions: Show all of your work and provide numerical answers for physicalquantities with appropriate units and significant figures.Read Oxtoby Chapter 12OWL Simulations Chapt