tax quiz 4-6 - Marks: 1 Richard and Alice Kelley lived...

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Marks: 1 Richard and Alice Kelley lived apart during 2011 and did not file a joint tax return for the year. Under the terms of the written separation agreement they signed on July 1, 2010, Richard was required to pay Alice $1,500 per month of which $600 was designated as child support. He made 12 such payments in 2011. Assuming that Alice has no other income, her tax return for 2011 should show gross income of: Choose one answer. a. $0 b. $5,400 c. $10,800 d. $12,600 Alice's 2011 return should show gross income of $10,800 ($900 alimony per month x 12). * This question has been adapted from the AICPA Examinations. Incorrect Marks for this submission: 0/1. Question 2 Marks: 1 Jerry, a general contractor by trade, is a tenant of Montgomery Apartments. In exchange for four months rent ($900/month), Jerry provided the following items and services for Paul, the owner of the apartments: Paint and miscellaneous supplies for the apartments $ 700 Labor for painting and miscellaneous repairs 1,000 Labor and supplies for paving the apartment parking area 1,900 How should Paul treat this transaction on his 2011 Schedule E? Choose one answer. a. Rental income of $3,600 and rental expenses of b. No rental income or rental expenses are to be re is 0. c. Rental income of $3,600 and depreciation compu
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d. Rental income of $3,600, rental expenses of $1,7 expenditures of $1,900. The amount of services provided in lieu of payment is includable to the owner as rental income. The labor and supplies for paving the parking area are capitalized construction costs. *This question has been adapted from the IRS Examinations. Incorrect Marks for this submission: 0/1. Question 3 Marks: 1 Todd, a politician, uses political contributions to pay his household electric bill. The amount used to pay the electric bill is taxable income to Todd. Answer: True False Correct Marks for this submission: 1/1. Question 4 Marks: 1 All of the following are considered "constructive receipt" of income, except: Choose one answer. a. Lori was informed her check for services ren up. b. Pierre earned income that was received by c. Jacque bought a 9-month certificate of depo 2011. She can withdraw the principal and inter interest ($100). d. A payment on a sale of real property place i would convey. A payment on a sale of real property placed in escrow pending settlement at which time title would convey. * This question has been adapted from the IRS Examination. Correct Marks for this submission: 1/1. Question 5 Marks: 1 In which of the following situations will the divorced custodial parent be entitled to the dependency exemption for the child?
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Choose one answer. a. The noncustodial parent provides $1,500 of sup provides $1,200. b. The custodial and noncustodial parent both prov
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This note was uploaded on 10/19/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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tax quiz 4-6 - Marks: 1 Richard and Alice Kelley lived...

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