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Unformatted text preview: Individual Tax MC Q.1 Which of the following is a deduction for AGI? a. Alimony payments. b. Interest on home mortgage. c. Unreimbursed employee expenses. d. Charitable contributions. Q.2 Tammy had the following transaction in 2008: Salary $40,000 Bank loan (personal loan) 10,000 Alimony received 6,000 Child support received 12,000 Inheritance from deceased aunt 50,000 Tammys AGI is: a. $40,000. b. $46,000. c. $52,000. d. $96,000. Q.3 Tom and Missy Carter are husband and wife and file a joint return for 2008. Both are 45 years of age. They provide more than half of the support of their daughter, Mindy (age 25), who is a full-time medical student. Mindy receives a $3,400 scholarship covering her room and board at college. They furnish all of the support of Mandy (Toms grandmother), who is age 70 and lives in a nursing home. They also support Mary (age 66), who is a friend of the family and lives with them. How many personal and dependency exemptions may the Carters claim? a. Two. b. Three . c. Four. d. Five. Q.4 In which, if any, of the following situations may the individual not be claimed as a dependent of the taxpayer? a. A former spouse who lives with the taxpayer (divorce took place this year). b. A stepmother who does not live with the taxpayer. c. A married daughter who lives with the taxpayer. d. A half brother who does not live with the taxpayer and is a citizen and resident of Canada. Q.5 Windy purchased a U.S. Series EE savings bond for $279. The bond has a maturity value in 10 years of $500 and yields 6% interest. This is the first Series EE bond that Wind has ever owned. a. Windy must report the interest income each year using the original issue discount rules....
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- Spring '09