Ch 3-4 3600
Ch 3-4 3400 Fall 2014
Name
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____
1. During this year, Marvin had the following transactions:
Salary
Bank loan (proceeds used to buy personal auto)
Alimony paid
Child support paid
Gift from aunt
$50,000
10,000
12,000
6,000
20,000
Marvin’s AGI is:
a. $32,000.
b. $38,000.
c. $44,000.
d. $56,000.
e. $64,000.
____
2. During this year, Sarah had the following transactions:
Salary
Interest income on City of Baltimore bonds
Damages for personal injury (car accident)
Punitive damages (same car accident)
Cash dividends from Chevron Corporation stock
$ 80,000
1,000
100,000
200,000
7,000
Sarah’s AGI is:
a. $185,000.
b. $187,000.
c. $285,000.
d. $287,000.
e. $387,000.
____
3. Sylvia, age 17, is claimed by her parents as a dependent. During this year, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Sylvia’s taxable income is:
a.
b.
c.
d.
e.
$4,200 – $4,550 = $0.
$6,200 – $5,700 = $500.
$6,200 – $4,550 = $1,650.
$6,200 – $1,000 = $5,200.
None of the above.
1
____
4. Merle is a widow, age 80 and blind, who is claimed as a dependent by her son. During this year, she received $4,800 in Social Security benefits, $2,350 in bank interest, and
$1,800 in cash dividends from stocks. Merle’s taxable income is:
a. $4,150 – $1,000 – $3,100 = $50.
b. $4,150 – $3,100 = $1,050.
c. $4,150 – $1,000 – $1,550 = $1,600.
d. $8,950 – $1,000 – $3,100 = $4,850.
e. None of the above.
____
5. Kyle and Liza are married and under 65 years of age. During this year, they furnish more than half of the support of their 19-year old daughter, May, who lives with them. She graduated from high school in May of last year. May earns $15,000 from a part-time job, most of which she sets aside for future college expenses. Kyle and Liza also provide more than half of the
Name
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____
1. During this year, Marvin had the following transactions:
Salary
Bank loan (proceeds used to buy personal auto)
Alimony paid
Child support paid
Gift from aunt
$50,000
10,000
12,000
6,000
20,000
Marvin’s AGI is:
a. $32,000.
b. $38,000.
c. $44,000.
d. $56,000.
e. $64,000.
____
2. During this year, Sarah had the following transactions:
Salary
Interest income on City of Baltimore bonds
Damages for personal injury (car accident)
Punitive damages (same car accident)
Cash dividends from Chevron Corporation stock
$ 80,000
1,000
100,000
200,000
7,000
Sarah’s AGI is:
a. $185,000.
b. $187,000.
c. $285,000.
d. $287,000.
e. $387,000.
____
3. Sylvia, age 17, is claimed by her parents as a dependent. During this year, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Sylvia’s taxable income is:
a.
b.
c.
d.
e.
$4,200 – $4,550 = $0.
$6,200 – $5,700 = $500.
$6,200 – $4,550 = $1,650.
$6,200 – $1,000 = $5,200.
None of the above.
1
____
4. Merle is a widow, age 80 and blind, who is claimed as a dependent by her son. During this year, she received $4,800 in Social Security benefits, $2,350 in bank interest, and
$1,800 in cash dividends from stocks. Merle’s taxable income is:
a. $4,150 – $1,000 – $3,100 = $50.
b. $4,150 – $3,100 = $1,050.
c. $4,150 – $1,000 – $1,550 = $1,600.
d. $8,950 – $1,000 – $3,100 = $4,850.
e. None of the above.
____
5. Kyle and Liza are married and under 65 years of age. During this year, they furnish more than half of the support of their 19-year old daughter, May, who lives with them. She graduated from high school in May of last year. May earns $15,000 from a part-time job, most of which she sets aside for future college expenses. Kyle and Liza also provide more than half of the