Chapter 7 - Individual Income Tax Computation and Tax Credits
Individual Income Tax Computation and Tax Credits
1. [LO 1] What is a tax bracket? What is the relationship between filing status and the width
Chapter 9 - Property Acquisition and Cost Recovery
Property Acquisition and Cost Recovery
[LO 1] Explain the reasoning why the tax laws require the cost of certain assets to be
capitalized and recovered
Chapter 12 - Compensation
[LO 1] Shane is an employee who has had a relatively consistent income over the
years. His withholding is pretty much right on target with his actual tax liability
Chapter 14 - Tax Consequences of Home Ownership
Tax Consequences of Home Ownership
1. [LO 1] How does a taxpayer determine whether a dwelling unit is treated as a residence or
nonresidence for tax purposes?
Chapter 8 - Business Income, Deductions, and Accounting Methods
Business Income, Deductions, and Accounting Methods
[LO 1] What is an ordinary and necessary business expenditure?
Ordinary and necessary im
Chapter 11 - Investments
[LO 1] Describe how interest income and dividend income are taxed. What are the
similarities and differences in their tax treatment?
Because they are cash method taxp
ACC 7120 and ACC 5170
Take Home Quiz 2
Part 1: Sam sold his farm during the current taxable year. At the date of the sale, the farm
had an adjusted basis of $205,000 and was encumbered by a mortgage of $200,000. The
buyer agreed to t
TAKE HOME QUIZ #3 ANSWERS
Amanda earns a yearly salary of $250,000. During 2011 she invested $80,000 for a 20%
interest in a passive activity. Operations of the activity in 2011 resulted in a loss of
$500,000, of which Amandas share
ACC 7120 and 5170
Take Home Quiz 1
Bob is single and has AGI of $125,000 in 2012. His potential itemized deductions before any
limitations for the year total $79,000 and consist of the following:
Medical expenses (before 7
ACC 7120 and 5170 Answers to Quizzes 7 9 Summer 2013
Long-term capital gains, dividends, and taxable interest income are all taxed at preferential rates.
Regular taxable income is the starting point for determining the alternative minimum tax.
Chapter 10 - Property Dispositions
1. [LO 1] Compare and contrast different ways in which a taxpayer triggers a realization
event by disposing of an asset.
A realization event for tax