{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACCT 3321.001 & .002 Test II-Spring 2011

ACCT 3321.001 & .002 Test II-Spring 2011 - ACCT...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 3321 – Federal Income Tax 1 Test II Spring 2011 INSTRUCTOR: Dr. Valrie Chambers NAME __________________________ 1. Bruce is employed as an executive and his wife, Marie, is a self-employed realtor. Besides Bruce's salary, Bruce and Marie own a warehouse that they rent to a local business for storage. This year they paid $1,250 for electric service in the warehouse. Marie also paid self-employment tax of $6,200 and Bruce had $7,000 of Social Security taxes withheld from his pay. Marie paid $45 fee to rent a safe deposit box to store records associated with her realty operation. Which of the following is a true statement? A. One-half of the social security tax is deductible for AGI. B. Only the electric bill is deductible for AGI. C. The self-employment tax is not deductible. D. The safe deposit fee and the electric bill are deductible for AGI. 2. Casey currently commutes 35 miles to work in the city. He is considering a new assignment in the suburbs on the other side of the city that would increase his commute considerably. He would like to accept the assignment, but he thinks it might require that he move to the other side of the city. Which of the following is a true statement? 3. Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums. Under which of the following alternative conditions can Hector deduct the cost of the premiums for AGI?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}