– Chapter 1 25 SOLUTIONS FOR QUESTIONS AND PROBLEMS 26 Chapter 1 – The Individual Income Tax Return Solutions for Questions and Problems – Chapter 1 27 CHAPTER 1 THE INDIVIDUAL INCOME TAX RETURN Group 1 - Multiple Choice Questions 1. D (LO 1.1) 7. C (LO 1.5) 15. A (LO 1.8) 2. D (LO 1.2) 8. E (LO 1.6) 16. E $25‚000 = $275‚000 – 3. A (LO 1.3) 9. C (LO 1.6) ($285‚000 – $35‚000) (LO 1.8) 4. C (LO 1.3) 10. C (LO 1.6) 17. C $45‚000 = $48‚000 – $3‚000 5. B $98‚000 – $19‚000 – $3‚800 11. B (LO
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07 Individual Income Tax Computation and Tax Credits True / False Questions 1. Both the width (or range) of the tax brackets (the amount of income taxed at a particular rate) in the tax rate schedules and the range of the tax rates in the tax rate schedules (the difference between the lowest tax rate and the highest tax rate) vary by filing status. True False 2. The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income. True False
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Tax Return Worksheet Directions Review Gloria Ramsay’s tax return. Answer the following questions based on the information listed in her return. 1. Even though Gloria is single‚ her filing status is Head of Household. Why is Gloria able to file as head of household? Gloria is able to file head of house hold in this case because‚ she has a qualifying dependent. A qualifying dependent would be a closely related relative dependent that you have provided for maintaining a home for yourself
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City “STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR ANNUAL INCOME TAX RETURN” The Management of BTKPNB VENTURES is responsible for all information and representations contained in the Annual Income Tax Return for the year ended December 31‚ 2012. Management is likewise responsible for all information and representations contained in the financial statements accompanying the Annual Income Tax Return covering the same reporting period. Furthermore‚ the Management is responsible for all information
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Benefits of Filing your Income Tax Return 1. Standard Income Proof: ITR is considered a customary income proof not only in India but also globally. If you are looking for higher education or employment abroad‚ ITR is the largely accepted income proof. 2. Speeds your loan application process: Apart from a good credit history (or past repayment track)‚ the fact that you are filing your ITR regularly gives you speedier access to credit and at better terms -- although not necessarily a larger line
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47% of Americans did not pay income tax in 2012. In 2007‚ before the economic downturn‚ 40% of households did not owe federal income tax (Lehnardt 1). Under those circumstances‚ lowering income tax will bring in more jobs‚ thus making it easier for Americans to gain wealth. Since the 1970s‚ tax development has always been a big problem from than to present day. “Tax benefits were [taken away] in 1986‚ [were] prices dropped and many lost money” (Reed 32). Without these tax benefits‚ American’s would
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be included (A) in or excluded (B) from gross income for the 2012 tax year. 1. Alimony | | 2. Lottery winnings | | 3. Life insurance proceeds received upon the death of a family member | | 4. Child support payments | | 5. Reimbursement of hospital expenses from a health insurance plan | | 6. Municipal bond interest | | 7. Unemployment compensation | | 8. Scholarships for tuition and books | | 9. Wages | | 10. Farm income | | 11. Inheritances | | Which of the following
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Accounting for Income Tax The standard prescribes the accounting treatment for income taxes is AASB 112 AASB 112 is based on a balance sheet approach to account for income taxes and it covers: • the accounting treatment of current and deferred tax expenses; • recognition and measurement of current tax assets and liabilities; • recognition and measurement of deferred tax assets and liabilities; • the accounting treatment of the tax consequences of various transactions and events‚ including
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CH1 10. a) State Income - regressive b) Federal State Tax – Progressive (larger the state; larger the tax) c) Corporate & franchise tax - Progressive d) Property tax – Proportional (value of property is taxed at flat rate) e) State Sales Tax – Proportional 12. Who uses a) Property Tax – State Local b) Excise Taxes – All three (State‚ federal‚ and local) c) Sales – State and Local d) Income Tax – Federal‚ State‚ Local e) Employment – Federal‚ State‚ and
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Memo to File Date: February 09‚ 2012 Re: Reducing Dr. Kevorkian’s tax liability from passive investments before year’s end. Facts: In 2010 Dr. Kevorkian had the following transactions: He has active income‚ from medical practice of $150‚000 (active income). He expects to receive $10‚000 in interest and dividends (portfolio income). He invests $100‚000 in Limited‚ a limited partnership (passive income). Limited lost money and Dr. Kevorkian’s share of the loss is $15‚000. In 2011 Dr. Kevorkian
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