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Quiz 1 FA 11 Key - Total Points Less Points Missed 27 Score...

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Total Points 2 7 Less Points Missed ___ Score ACCT 403 QUIZ 1 Fall 2011 NAME___ Key ______________________________ Directions – There are three questions worth a total of 27 points. The value of each question is indicated at the end of each question. For question 1, you must show your work to receive credit . 1. Compute the net tax liability or refund for the taxpayer given the following information assuming that the taxable year is 2011. Use the attached 2011 Tax Rate Schedules. [5 points]. Filing Status Single |Gross Income ( Including $12,000 $101,000 | of long-term capital gain income) Age 68 |Deductions For AGI 23,550 # of Exemptions 1 |Nonrefundable Tax Credits 1,550 Total Itemized Deductions $7,000 |Tax Payments to IRS 11,000 GROSS INCOME $101,000 -DEDUCTIONS FOR AGI ( 23,550) (1) AGI $ 77,450 -GREATER OF: (1) Standard Deduction = 5,800+1,450 = $7,250 ( 7,250) (1) (2) Itemized Deduction = 7,000 -EXEMPTIONS: 1 X 3,700 ( 3,700) (1) TAXABLE INCOME $ 66,500 TAX LIABILITY 1 $34,500 $ 4,750 st Cap Gain $12,000 x 15% 1,800 Remaining $20,000 x 25% 5,000 $11,550 (1) -TAX CREDITS (1,550) (1) -TAX PAYMENTS (11,000) (1) TAX DUE (REFUND) $ 1,000 or TAX LIABILITY Taxable Income $ 66,500 LTCG (12,000) 54,500 Tax on (34,500) 4,750 Remaining x 25% 20,000 5,000 Cap Gain $12,000 x 15% 1,800 $11,550 (1) -TAX CREDITS (1,550) (1) -TAX PAYMENTS (11,000) (1) TAX DUE (REFUND) $ 1,000 Maximum -5
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2. Indicate True or False for the following statements based on a 2011 taxable year: (2 points each/14 points ____T____a.
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