SAMPLE TEST 1summer1 - Accounting 4301 Test 1 SAMPLE TEST 1...

Accounting 4301 Test # 1 SAMPLE TEST 1
1 Determine taxable income of Michael Manx in 2015, who is single and has $1800 of wages and $4,800 of
interest income for the year. He is claimed as a dependent by his parents. Also calculate his tax liability
assuming he is in 10% bracket and his parents are in 30% bracket
2 During 2015, Milton Hanover was granted a divorce from his wife. The divorce decree stipulated that he was to
pay both alimony and child support for a specified period of time. In examining his records for 2015, the
following information is available:
Salary $55,000
Interest received on bank deposits 1500
Interest received on municipal obligations 5500
$62,000
Alimony paid 2,000
Child support 4,800
What is Hanover's adjusted gross income for 2015?
3 Bob Buttons, a cash basis calendar year taxpayer, owns and operates an apartment building. During 2015,
he received the following paymen. What is the amount of Bob's gross rental income for 2015?