Week 6 hmwrk tax management
Week 5 : C Corporations Concluded - Homework ES
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1. (TCO E) For federal tax purposes, royalty income that is not derived in the ordinary course of a business is classified as: (Points : 5) portfolio income. answer active income. passive income. None of the above
2. (TCO F) When comparing corporate and individual taxation, the following statement is true: (Points : 5) Unlike individual taxpayer, corporate may not have a long-term capital loss carryforward. Both types of taxpayers have percentage limitations on the charitable contribution deduction, coupled with a carryover of the excess contribution. All taxpayers may carry net operating losses back two years, forward 20 years. All of the above. answer
3. (TCO H) Al and Amy file a joint return for the 2012 tax year. Their adjusted gross income is $80,000. They had net investment income of $7,000. In 2012, they had the following interest expenses:
Personal credit card interest: $4,000
Home mortgage interest: $8,000
Investment interest (on loans used to buy stocks): $10,000
What is the interest deduction for Al and Amy for the 2012 tax year? (Points : 5) $8,000 $15,000. answer $12,000 $18,000
4. (TCO B) A contribution made to the following donee is not deductible. (Points : 5) Boy Scouts of America Oxford University, England. answer Society for the Prevention of Cruelty to Animals Michigan State University California State Fair (an activity of the State of California)
5. (TCO A) The following taxes were paid by Tim:
Real estate taxes on his home: $2,000
State income taxes: $900
State gasoline tax (personal use of automobile): $150
In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes? (Points : 5) $2,000 $2,900. answer $3,050 $0
6. (TCO F) Hoover, Inc. had gross receipts from operations of $230,000, operating
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1. (TCO E) For federal tax purposes, royalty income that is not derived in the ordinary course of a business is classified as: (Points : 5) portfolio income. answer active income. passive income. None of the above
2. (TCO F) When comparing corporate and individual taxation, the following statement is true: (Points : 5) Unlike individual taxpayer, corporate may not have a long-term capital loss carryforward. Both types of taxpayers have percentage limitations on the charitable contribution deduction, coupled with a carryover of the excess contribution. All taxpayers may carry net operating losses back two years, forward 20 years. All of the above. answer
3. (TCO H) Al and Amy file a joint return for the 2012 tax year. Their adjusted gross income is $80,000. They had net investment income of $7,000. In 2012, they had the following interest expenses:
Personal credit card interest: $4,000
Home mortgage interest: $8,000
Investment interest (on loans used to buy stocks): $10,000
What is the interest deduction for Al and Amy for the 2012 tax year? (Points : 5) $8,000 $15,000. answer $12,000 $18,000
4. (TCO B) A contribution made to the following donee is not deductible. (Points : 5) Boy Scouts of America Oxford University, England. answer Society for the Prevention of Cruelty to Animals Michigan State University California State Fair (an activity of the State of California)
5. (TCO A) The following taxes were paid by Tim:
Real estate taxes on his home: $2,000
State income taxes: $900
State gasoline tax (personal use of automobile): $150
In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes? (Points : 5) $2,000 $2,900. answer $3,050 $0
6. (TCO F) Hoover, Inc. had gross receipts from operations of $230,000, operating