Federal Tax Midterm - Week 2 - Keller Graduate School of...

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Keller Graduate School of Management ACC553 Federal Taxation Midterm Exam (125 points) Professor Michael Abner, MBA, MS JD MULTIPLE CHOICE QUESTIONS Chapter 1 28. To be guilty of tax evasion, you must: a. Try to maximize profits. b. Try to minimize your tax liability. c. Arrange your affairs so as to keep your taxes as low as possible. d. Refuse to disclose a tax liability based on a completed transaction. 29. The major source of federal tax revenue is: a. Corporate income tax b. Individual income tax c. Excise tax d. Estate tax 30. Since 1980, the group of taxpayers whose tax burden has increased the most is: a. Individuals b. Corporations c. Trusts and estates d. None of the above 31. The most popular form of doing business in the United States is: a. Corporate form b. Partnership form c. Single proprietorship d. S corporation 32. The IRS levies penalties for which of the following: a. Bouncing checks b. Fraud c. Late filing d. All of the above
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MULTIPLE CHOICE QUESTIONS—CHAPTER 3 32. Mr. and Mrs. Twig are both under 65 years of age and have no dependents. Their only income for the year was his salary of $15,500. During the year they made only a nominal amount of disbursements of the type that qualify as itemized deductions. What is their standard deduction on a 2011 joint return? a. $3,700 b. $11,600 c. $5,800 d. $8,500 e. None of the above 33. Jerry Jenkins is over 65 years of age and has no dependents. His only income was his salary of $10,500. During the year, he made only a nominal amount of disbursements of the type that qualify as itemized deductions of $3,290. What is his standard deduction for 2011? a. $5,800 b. $3,700 c. $7,250 d. $3,290 e. None of the above 34. What is Jerome Jackson’s standard deduction for 2011 if he has $20,000 in wages and fi les married filing separately? He also claims one of the two children. a. $5,800 b. $4,850 c. $11,600 d. $3,700 e. None of the above 35. What is the amount of standard deduction for Abigale Abrams in 2011, a divorced parent, who fully supports her five-year-old daughter? a. $5,800 b. $8,500 c. $11,600 d. $7,400 e. None of the above
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36. Determine the amount of taxable income of Michael Manx in 2011, who is single and has $300 of wages and $2,000 of interest income for the year. He is claimed as a dependent by his parents. a. $2,000 b. $2,300 c. $1,350 d. $300 e. $0 37. Marvin Miller, who is claimed as a dependent by his parents, received income of $3,100 from a trust fund and $500 from wages. Marvin had $1,050 in itemized deductions. What is Marvin’s taxable income? a. $2,650 b. $3,600 c. $2,550 d. $1,700 e. None of the above MULTIPLE CHOICE QUESTIONS—CHAPTER 13 19. A short tax year with the subsequent annualizing of taxable income is required for which of the following? a. In the year of death of an individual
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Federal Tax Midterm - Week 2 - Keller Graduate School of...

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