Take Home Study Exam for Final without solutions

Take Home Study Exam for Final without solutions - FEDERAL...

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FEDERAL INCOME TAXATION ACCT4331 Take Home Study Exam for Final Spring 2008 Name:________________________________ Signature:______________________________ Instructions : This exam is optional and designed to prepare you for the Final. It must be done individually . Clearly mark your answers on BOTH the scantron AND on your test, and do so with a #2 pencil. SHOW ALL WORK IN PENCIL to receive credit. Guesses on problems that show no work will be given a zero. All answers must reflect current tax law which we have been referring to this semester. Extra paper can be used and attached if you need any. This exam, and extra sheets you used AND your scantron must be turned in by noon on Friday, May 8 th (late assignments will NOT be accepted for ANY reason – but you can turn them in at MH390A at any time before the deadline) . There are 40 MC questions each with a value of 2.5%, for a total of 100%. This take home exam will also be used to calculate your curve on the Final. The formula that will be used to calculate the curve portion of your Final is: (100% - your grade on the Final)*25%*(your grade on the Take Home Exam) Signing this page indicates that you did not cheat in any way including discussing this exam with anyone else or in any way violate the Honor Code you signed in class AT ANY TIME, including not reporting cheating you are aware of. Good luck!
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1) G had income and expenses as follows for the current taxable year: Total income $32,400 Exclusions (municipal bond interest) 2,000 Deductions for A.G.I. 1,200 Total itemized deductions 9,920 Standard deduction 5,150 Exemption deductions 6,600 What are G’s adjusted gross income and her taxable income, respectively? a. $29,200; $12,680 b. $31,200; $14,680 c. $29,200; $17,050 d. $28,000; $12,680 2) J and Z, husband and wife, created a trust for J’s aging mother, Betty. This year the trust received dividend income of $15,000 and distributed $10,000 to Betty. The taxable income of the trust and Betty is? a. Trust $15,000, Betty $10,000 b. Trust $0, Betty $15,000 c. Trust $5,000, Betty $10,000 d. Trust $15,000, Betty $0 e. None of the above.
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3) Barnum and Bailey incorporated their circus this year and elected to be treated as an S corporation. Barnum owns 60% of the corporation’s stock while Bailey owns the remaining 40%. This year, the corporation had net income of $300,000 before the owners took any money out of the business (e.g., before salaries, dividend distributions, etc.). Assuming the corporation paid Barnum a deductible salary of $100,000 for managing the business and made dividend distributions of $12,000 to Barnum and $8,000 to Bailey, what is the amount of taxable income to be reported by Barnum? a. $220,000
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This note was uploaded on 08/10/2010 for the course INTB AND T 3352 taught by Professor Newmanandpriest during the Spring '09 term at University of Houston.

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Take Home Study Exam for Final without solutions - FEDERAL...

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