Chapter 3 Test - 1 Marks: 1/1 Marie furnishes more than 50%...

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1 Marks: 1/1 Marie furnishes more than 50% of the support of her son and daughter-in-law who live with her. Even if the son and daughter-in-law file a joint return, Marie can claim them as dependents. Choose one answer. a. True b. False Correct. Only if certain conditions are satisfied (e.g., they did not have to file but did so to obtain a refund), the son and daughter-in-law can qualify as Marie's dependents. p. 3-18 and Example 28 Correct Marks for this submission: 1/1. History of Responses: # Action Response Time 1 Grade False 19:58:50 on 21/03/11 2 False 19:58:50 on 21/03/11 Question 2 Marks: 1/1 The basic and additional standard deductions are subject to an annual adjustment for inflation. Answer: True Correct. The inflation adjustment is made annually to both the basic standard deduction and the additional standard deduction. REF: p. 3-9 Correct Marks for this submission: 1/1. History of Responses: # Action Response Time 1 Grade True 20:00:02 on 21/03/11 2 True 20:00:02 on 21/03/11 Question 3 Marks: 1/1 As used in the income tax formula, gross income would not include the receipt of
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a loan the taxpayer obtained from a bank. Choose one answer. a. True Correct. b. False Borrowing money does not result in gross income. REF: Example 1 Correct Marks for this submission: 1/1. History of Responses: # Action Response Time 1 Grade True 20:00:37 on 21/03/11 2 True 20:00:37 on 21/03/11 Question 4 Marks: 1/1 Logan, age 15, is claimed as a dependent by his parents. During 2009, he earned $350 delivering pizzas. Logan's standard deduction is $650 ($350 + $300). Choose one answer. a. True b. False Correct. Her standard deduction is the greater of $950 or her earned income plus $300. p. 3-10 Correct Marks for this submission: 1/1. History of Responses: # Action Response Time 1 Grade False 20:00:59 on 21/03/11 2 False 20:00:59 on 21/03/11 Question 5 Marks: 0/1 If the individual does not spend funds that have been received from another source (e.g., Social Security benefits), the unexpended amounts are still considered for purposes of the support test. Choose one answer. a. True Incorrect. b. False
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The funds are counted only if used for support purposes. p. 3-16 and Example 25 Incorrect Marks for this submission: 0/1. History of Responses: # Action Response Time 1 Grade True 20:21:59 on 21/03/11 2 True 20:21:59 on 21/03/11 Question 6 Marks: 1/1 In 2009, Billie is 70 and single. If she has itemized deductions of $7,000, she should claim the standard deduction alternative. Answer: True Correct. The standard deduction yields $7,100 ($5,700 + $1,400). Example 6 Correct Marks for this submission: 1/1. History of Responses: # Action Response Time 1 Grade True 20:25:40 on 21/03/11 2 True 20:25:40 on 21/03/11 Question 7 Marks: 1/1 After her divorce, Hope continues to support her ex-husband's sister, Cindy, who does not live with her. Hope cannot claim Cindy as a dependent. Choose one answer.
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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 Test - 1 Marks: 1/1 Marie furnishes more than 50%...

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