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Unformatted text preview: using the general rule is: $75,000/ (10,000x2)=exclusion ratio is 15% 15%x4,000 received this year=$600 excluded $3,400 is taxable (C) $1,500 8. Which of the following would result in life insurance proceeds that are taxable to the recipient? (b) A life insurance policy transferred to a creditor in payment of a debt 9. Which of the following gifts would probably be held to be taxable to the person receiving the gift? (B) A trip to Mexico given to a purchasing agent by one of the company’s suppliers 10. Which of the following items would be includable in the gross income of the recipient? (C) Season tickets given by a salesperson to a customer 11. For 2010, the maximum percentage of Social Security benefits that must be included in a taxpayer’s gross income is: (a) 85% 12. Generally, modified adjusted gross income (MAGI) is adjusted gross income (without Social Security benefits): (e) Plus tax-exempt interest income...
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