217exam1 - Name: _ Class: _ Date: _ ID: A ACCT217 -...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Spencer and Ashley are married and live in a common law state. Spencer wants to make gifts to their four children in 2007. What is the maximum amount of the annual exclusion they will be allowed for these gifts? a. $48,000. b. $96,000. c. $1,096,000. d. $2,096,000. e. None of the above. ____ 2. Property can be transferred within the family group by gift or at death. One motivation for preferring the gift approach is: a. To take advantage of the per donee annual exclusion. b. To avoid a future decline in value of the property transferred. c. To take advantage of the higher unified transfer tax credit available under the gift tax. d. To shift income to higher bracket donees. e. None of the above. ____ 3. State income taxes can: a. Piggyback to the Federal version. b. Decouple from the Federal version. c. Apply to visiting nonresidents. d. Provide occasional amnesty programs. e. All of the above. ____ 4. Bjorn owns a 40% interest in an S corporation that earned $150,000 in 2007. He also owns 30% of the stock in a C corporation that earned $150,000 during the year. The S corporation distributed $35,000 to Bjorn and the C corporation paid dividends of $35,000 to Bjorn. How much income must Bjorn report from these businesses? a. $0 income from the S corporation and $0 income from the C corporation. b. $35,000 income from the S corporation and $35,000 income from the C corporation. c. $60,000 income from the S corporation and $35,000 of dividend income from the C corporation. d. $60,000 income from the S corporation and $0 income from the C corporation. e. None of the above. ____ 5. Subchapter K covers which specific area of tax law? a. Tax rates. b. Partnerships. c. Capital gains and losses. d. Corporations. e. None of the above ____ 6. Which of the following sources has the highest tax validity? a. Revenue Ruling. b. Revenue Procedure. c. Regulations. d. Internal Revenue Code section. e. None of the above.
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Name: ________________________ ID: A 2 ____ 7. A taxpayer may not appeal a case from which court? a. U.S. District Court. b. U.S. Circuit Court of Appeals. c. U.S. Court of Federal Claims. d. Small Cases Division of the U.S. Tax Court. e. None of the above. ____ 8. Which of the following taxes are included in the total income tax expense of a corporation as reported on its financial statements? a. State income taxes. b. Federal income taxes. c. Foreign income taxes. d. Local income taxes. e. All the above. ____ 9. Which of the following represent temporary book-tax differences? a.
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217exam1 - Name: _ Class: _ Date: _ ID: A ACCT217 -...

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