Chapter 1 Self Study Quiz
2/10/15
Self Study Quiz
Self Study Quiz
Assignment Name : Whittenburg: Income Tax Fundamentals, 2015 “Self Study Quiz”, 33e Chapter 01
Show Answers
Reset
1.
For income tax purposes,
All reporting entities are taxable.
Corporations are reporting entities only.
Partnerships are taxable entities only.
S corporations are taxable entities only.
Both taxable and reporting entities must file tax returns to report their income.
2.
The tax formula for individuals contains the following:
Gross income minus adjusted gross income equals taxable income.
Gross income minus deductions and minus exemptions is equal to the amount of adjusted gross income. Exemptions, credits, and deductions are subtracted from adjusted gross income to calculate taxable income. Adjusted gross income minus deductions and minus exemptions is equal to taxable income.
The amount of the refund due is the gross tax liability added to credits.
3.
Eugenia and Victor are married. For 2014, Eugenia earned $35,000 and Victor earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugenia's itemized deductions are $7,400 and Victor's are $5,400.
Assuming Eugenia and Victor do not live in a community property state, what is Eugenia's taxable income? $24,850
$23,650
$35,000
$27,600
None of the above
4.
Which of the following taxpayers does not have to file a tax return for 2014?
A student, age 25, with unearned income of $1,400 who is claimed as a dependent by his parents.
A qualifying widow (age 67) with a dependent child and income of $14,950.
A single taxpayer who is under age 65, with income of $11,000.
Married taxpayers (ages 45 and 50 years), filing jointly, with income of $25,000.
All of the above taxpayers must file a return.
5.
Heads of households:
Have the same tax rates as married taxpayers filing separately.
Cannot be married as of December 31 of the tax year.
Can only qualify if
Self Study Quiz
Self Study Quiz
Assignment Name : Whittenburg: Income Tax Fundamentals, 2015 “Self Study Quiz”, 33e Chapter 01
Show Answers
Reset
1.
For income tax purposes,
All reporting entities are taxable.
Corporations are reporting entities only.
Partnerships are taxable entities only.
S corporations are taxable entities only.
Both taxable and reporting entities must file tax returns to report their income.
2.
The tax formula for individuals contains the following:
Gross income minus adjusted gross income equals taxable income.
Gross income minus deductions and minus exemptions is equal to the amount of adjusted gross income. Exemptions, credits, and deductions are subtracted from adjusted gross income to calculate taxable income. Adjusted gross income minus deductions and minus exemptions is equal to taxable income.
The amount of the refund due is the gross tax liability added to credits.
3.
Eugenia and Victor are married. For 2014, Eugenia earned $35,000 and Victor earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugenia's itemized deductions are $7,400 and Victor's are $5,400.
Assuming Eugenia and Victor do not live in a community property state, what is Eugenia's taxable income? $24,850
$23,650
$35,000
$27,600
None of the above
4.
Which of the following taxpayers does not have to file a tax return for 2014?
A student, age 25, with unearned income of $1,400 who is claimed as a dependent by his parents.
A qualifying widow (age 67) with a dependent child and income of $14,950.
A single taxpayer who is under age 65, with income of $11,000.
Married taxpayers (ages 45 and 50 years), filing jointly, with income of $25,000.
All of the above taxpayers must file a return.
5.
Heads of households:
Have the same tax rates as married taxpayers filing separately.
Cannot be married as of December 31 of the tax year.
Can only qualify if