T11F-Chp-00-Tst-3-Exm-Prb-Fall-2011 -...

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9fcfbdad67faac9f30c1476ca3de60a5486d1d76.doc. Page 1 of 5 Test No . _________ FEDERAL TAX - TEST NO. 3. Chapters 9-12 Fall, 2011. The University of North Carolina at Charlotte Name_____________________________________________ 11:00 or 6:30. Row In Class__________ Instructions : This test is "open book," which means you may use your textbook during the test. You may also use up to 4 pages of notes-front and back, or 8 pages printed on one side only. The test contains 25 multiple- choice questions. A question may cover material from more than one chapter. Some answers may be rounded to nearest dollar. Use 2011 tax rate schedules when computing federal individual income tax. Avoid all appearances of impropriety. If you see any sign of impropriety, please prepare an anonymous note and slide it under the instructor's office door. Failure to follow instructions below will result in a 5 point reduction in your grade. Multiple Choice- 25 questions count 4 points each for a total of 100 Points. 1. Use a soft-lead pencil 2. Enter name in appropriate space above. Write clearly. 3. Circle class time above. 4. Enter above the row number for your seat in class. On the Opscan Sheet 5. Enter name (last name first) in the area for “ Name .” 6. Enter test number (found in upper right hand corner of this page) in the special codes area. 7. Blacken the area in the circle containing the appropriate letter for each question. You are not required to enter your student ID number in the area for “ Identification Number .” Answer each question by marking the letter representing the best answer. 1 Taxpayer bought a business building and land in a single transaction. Description Amount Total Cost for both assets $2,500,000 Property Tax Assessed Value of building 1,800,000 Property Tax Assessed Value of land 200,000 What is the basis of the building? a. $ 190,000 b. $ 1,710,000 c. $2,000,000 d. $2,250,000 e. $2,300,000 2 Sally is construction manager for a home builder. Sally was able to complete construction of the homes in their latest development, with an average cost per home that was 10% below budget for the development. In recognition of her accomplishment, the home building corporation sold one of the homes to Sally for $200,000. The retail value of the home was $300,000. How much income is reported by Sally and what is the basis in her new home. Income Basis Income Basis a. $0 $200,000 b. $0 $300,000 c. $100,000 $300,000 d. $100,000 $200,000 3 Julie’s grandmother bought some land 10 years ago for $70,000. In the current year, the grandmother gave Julie the land, which had a value of $100,000 on the date of the gift. Her Grandmother paid gift tax of $10,000 on the gift. What is Julie’s basis in the land? a.
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T11F-Chp-00-Tst-3-Exm-Prb-Fall-2011 -...

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