293403009-ACCT-553-Final-Exam.docx - ACCT 553 Final Exam IF You Want To Purchase A Work then Click The Link Below For Instant Down Load

293403009-ACCT-553-Final-Exam.docx - ACCT 553 Final Exam IF...

This preview shows page 1 - 3 out of 4 pages.

ACCT 553 Final Exam IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load IF You Face Any Problem Then E Mail Us At [email protected] Question 1. (TCO E) Interest, dividends, and annuities income are classified as _____. (Points : 5) active income passive income portfolio income None of the above 2. (TCO D) Tom Tanner traded in a printing press with an adjusted basis of $20,000 for a smaller press valued at $12,000. In addition to the smaller press, Tom received $3,000 in cash and was relieved of the existing liability of $5,000 on the old press. What is Tom's recognized gain? (Points : 5) $0 $3,000 $4,800 $5,000 3. (TCO H) Bob and Susan file a joint return for the 2010 tax year. Their adjusted gross income is $80,000. They had a net investment income of $9,000. In 2010, they had the following interest expenses. Personal credit card interest: $5,000 Home mortgage interest: $10,000 Investment interest (on loans used to buy stocks): $10,000 What is the interest deduction for Bob and Susan for the 2010 tax year? (Points : 5) $19,000 $8,000 $16,000 $25,000 4. (TCO B) Bob and Cindy Smith paid the following medical expenses during the year (all in excess of reimbursement). Hospital and doctor bills: $800 Medicine and drugs: $700 Hospitalization insurance premiums: $6,000 Medicine and drugs (for dependent mother, age 71): $1,000 Assuming that the Smiths' adjusted gross income was $60,000, how much of a medical expense deduction may Bob and Cindy claim on their joint return? (Points : 5) $8,170 $4,000 $4,330 $8,500 5. (TCO A) ***** *****, a cash-basis, calendar-year taxpayer, paid the following during the year. You can also visit our web site:
Image of page 1
Social security tax (withheld from wages): $4,500 Real estate taxes: $3,200 State i ncometax: $3,400 Special assessment for installation of sidewalks: $1,140 Penalty on tax underpayment: $300 Flat fee for automobile registration: $90 What itemized deduction may John claim for taxes on his return? (Points : 5) $7,700 $8,000 $11,190 $6,600 6. (TCO E) Bob sold a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Josh received $80,000 cash and a painting with a fair market value of $20,000 from the buyer. The buyer also assumed Josh's $25,000 loan on the equipment. Josh paid $5,000 in selling expenses. What is the amount of
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 4 pages?

  • Spring '10
  • seda

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture