Fall10 401 Test 1 (class distribution)

Fall10 401 Test 1 (class distribution) - Fall10 401 Test 1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Fall10 401 Test 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct ? a. The formula does not apply if a taxpayer elects to claim the standard deduction. b. In arriving at AGI, personal and dependency exemptions must be subtracted from gross income. c. In arriving at taxable income, a taxpayer must choose between the standard deduction and claiming personal and dependency exemptions. d. In arriving at taxable income, a taxpayer must choose between the standard deduction and deductions for AGI. e. None of the above. ____ 2. Which, if any, of the statements regarding the standard deduction is correct? a. The basic standard deduction is indexed for inflation but the additional standard deduction is not. b. Not available to taxpayers who choose to deduct their personal and dependency exemptions. c. Not available to taxpayers who choose to claim their deduction for AGI. d. Some taxpayers may qualify for two additional standard deductions. e. None of the above. __a__ 3. During 2010, Justin had the following transactions: Salary $ 80,000 Interest income on IBM bonds 2,000 Damages for personal injury (car accident) 200,000 Punitive damages (same car accident) 100,000 Cash dividends from Chevron Corporation stock 5,000 Justin’s AGI is: a. $185,000. b. $187,000. c. $285,000. d. $287,000. e. $385,000. __d__ 4. Kyle and Liza are married and under 65 years of age. During 2010, they furnish more than half of the support of their 19-year old daughter, May, who lives with them. May earns $15,000 from a part-time job, most of which she sets aside for future college expenses. Kyle and Liza also provide more than half of the support of Kyle’s cousin who lives with them. Liza’s father, who died on January 3, 2010, at age 80, has for many years
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/15/2010 for the course ACCT 401 taught by Professor Savage,g during the Fall '08 term at Winthrop.

Page1 / 4

Fall10 401 Test 1 (class distribution) - Fall10 401 Test 1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online