Chapter 3 Quiz - 1 The amount of the standard deduction...

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1 The amount of the standard deduction allowed varies with the filing status of the taxpayer involved. a. True Correct Correct. Question 2 Under a global system of taxation, a government would only tax its citizens and residents on income earned within its borders. b. False Correct Question 3 Tim, age 16, is claimed as a dependent by his grandmother. During 2009, Tim had interest income from City of Omaha bonds of $1,000 and earnings from a part-time job of $700. Tim's taxable income is: Choose one answer. a. $0. Correct Correct. Question 4 Which, if any, of the following is not a deduction for AGI? e. Union dues. Correct 1 Under a global system of taxation, a government would only tax its citizens and residents on income earned within its borders. Choose one answer. b. False Correct Correct. Question 2 As used in the income tax formula, gross income would not include the receipt of a loan the taxpayer obtained from a bank. Choose one answer. a. True Correct Correct. Question 3 During 2009, Barney had the following transactions: Salary $50,000 Interest income from City of Los Angeles bonds 1,000 Moving expenses to change jobs 5,000 Contribution to traditional deductible IRA 3,000
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Payment of state income tax 2,000 Barney's AGI is: c. $42,000. Correct Correct. Question 4 Which, if any, of the following is not a deduction from AGI? c. One-half of self-employment taxes paid. Correct Question 2 A change in the amount of a taxpayer's AGI will not affect the amount of a charitable deduction that is allowed. Choose one answer. b. False Correct 3 Gloria, age 67 and single, is claimed as a dependent on her son's tax return. During 2009, she had interest income of $2,400 and $600 of earned income from baby sitting. Gloria's taxable income for 2009 is: b. $650. Correct Question 4 During 2009, Millie had the following transactions: Salary $ 60,000 Inheritance from estate of deceased uncle 100,000 Life insurance proceeds received from Prudential (Millie was named as the beneficiary of her uncle's policy) 50,000 Loss on the sale of a houseboat (used for personal purposes) 4,000 Millie's AGI is: b. $60,000. Correct Question 1
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1 In 2009, Sally is 72 and single. If she has itemized deductions of $6,000, she should claim the standard deduction alternative. Answer: True Correct Question 2 Scott and Jeri are married and file a joint return. Both are over 65 years of age and Jeri is blind. In 2009, their standard deduction is $14,700. a. True Correct Question 3 Colin (age 70) and Ashby (age 66) are married and file a joint return for 2009. If they have itemized deductions of $13,500, they should not claim the standard deduction. b. False Correct Question 4 Which, if any, of the following statements relating to the standard deduction is correct?
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This note was uploaded on 04/03/2011 for the course ACC 3400 taught by Professor Balden during the Spring '11 term at Utah Valley University.

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Chapter 3 Quiz - 1 The amount of the standard deduction...

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