midterm exam - STUDENT NAME _ University of California,...

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STUDENT NAME ___________________________________ University of California, Riverside Bus 168A - Individual Federal Taxation - Midterm Exam - Winter 2010 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which, if any, of the following is a deduction for AGI? a. Alimony payments. b. Interest on home mortgage. c. Unreimbursed employee expenses. d. Charitable contributions. e. None of the above. ____ 2. During 2009, Marie had the following transactions: Salary $40,000 Bank loan (proceeds used to buy personal auto) 10,000 Alimony received 6,000 Child support received 12,000 Inheritance from deceased aunt 50,000 Marie’s AGI is: a. $40,000. b. $46,000. c. $52,000. d. $96,000. e. None of the above. ____ 3. During 2009, Sam had the following transactions: Salary $60,000 Interest income on General Electric Corporation bonds 2,000 Gift from parents 24,000 Contribution to traditional IRA 5,000 Lottery winnings 3,000 Sam’s AGI is: a. $59,000. b. $61,000. c. $65,000. d. $85,000. e. None of the above. ____ 4. Merle, age 17, is claimed by her parents as a dependent. During 2009, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Merle’s taxable income is: a. $4,200 – $4,500 = $0. b. $6,200 – $5,700 = $500. c. $6,200 – $4,500 = $1,700. d. $6,200 – $950 = $5,250. e. None of the above.
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____ 5. 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. e. A cousin who lives with the taxpayer. ____ 6. Which of the following taxpayers may file as a head of household in 2009? Ron provides all the support for his mother, Betty, who lives by herself in an apartment in Fort Lauderdale. Ron pays the rent and other expenses for the apartment and properly claims his mother as a dependent. Tammy provides over one-half the support for her 18-year old brother, Dan. Dan earned $4,200 in 2009 working at a fast food restaurant and is saving his money to attend college in 2010. Dan lives in Tammy’s home. Joe’s wife left him late in December of 2008. No legal action was taken and Joe has not heard from her in 2009. Joe supported his 6-year-old son, who lived with him throughout 2009. a. Ron only. b. Tammy only. c. Joe only. d. Ron and Joe only. e. Ron, Tammy, and Joe. ____ 7. For the current year, David has salary income of $80,000 and the following property transactions: Stock investment sales— Long-term capital gain $ 9,000 Short-term capital loss (11,000) Loss on sale of camper (purchased 4 years ago and used for family vacations) (2,000) What is David’s AGI for the current year? a.
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This note was uploaded on 03/31/2010 for the course BUSINESS 168 taught by Professor Weaver during the Winter '10 term at California State University , Monterey Bay.

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midterm exam - STUDENT NAME _ University of California,...

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