ACC 575 ACC575 Week 7 Quiz

ACC 575 Week 7 Quiz

1.

Which of the following is(are) among the requirements to enable a taxpayer to be classified as a "qualifying widow(er)"?

I. A dependent has lived with the taxpayer for six months.

II. The taxpayer has maintained the cost of the principal residence for six months.

2.

Tana's divorce decree requires Tana to make the following transfers to Tana's former spouse during the current year:

3.

Freeman, a single individual, reported the following income in the current year:

4. 

The self-employment tax is

5. 

Rich is a cash basis self-employed air-conditioning repairman with gross business receipts of $20,000. Rich's cash disbursements were as follows:

6.

In 2009, Wells paid the following expenses:

7.

Grey, a calendar year taxpayer, was employed and resided in New York. On February 2, 2009, Grey was permanently transferred to Florida by his employer. Grey worked full-time for the entire year. In 2009, Grey incurred and paid the following un-reimbursed expenses in relocating.

8. 

Which expense, both incurred and paid in 2008, can be claimed as an itemized deduction subject to the two-percent-of-adjusted-gross-income floor?

9. 

Which allowable deduction can be claimed in arriving at an individual's adjusted gross income?

10. 

In 2009, Joan Frazer's residence was totally destroyed by fire. The property had an adjusted basis and a fair market value of $130,000 before the fire. During 2009, Frazer received insurance reimbursement of $120,000 for the destruction of her home. Frazer's 2009 adjusted gross income was $70,000. Frazer had no casualty gains during the year.

11.

Abe Architect owns his own architectural consulting firm. During the current year he incurred the following expenses related to meetings with clients and potential clients:

12.

Banks Corp., a calendar year corporation, reimburses employees for properly substantiated qualifying business meal expenses. The employees are present at the meals, which are neither lavish nor extravagant, and the reimbursement is not treated as wages subject to withholdings. For 2008, what percentage of the meal expense may Banks deduct?

13. 

In the current year, an unmarried individual with modified adjusted gross income of $25,000 paid $1,000 interest on a qualified education loan entered into on July 1.

14. 

Adams owns a second residence that is used for both personal and rental purposes. During 2009, Jackson used the second residence for 50 days and rented the residence for 200 days.

15.

Wood's residence had an adjusted basis of $150,000 and it was destroyed by a tornado. An appraiser valued the decline in market value at $175,000. 

Later that same year, Wood received $130,000 from his insurance company for the property loss and did not elect to deduct the casualty loss in an earlier year. Wood's adjusted gross income was $60,000 and he did not have any casualty gains.

16.

Hall, a divorced person and custodian of her 12-year old child, filed her 2014 federal income tax return as head of a household. She submitted the following information to the CPA who prepared her 2014 return:

17. 

Smith, a single individual, made the following charitable contributions during the current year. Smith's adjusted gross income is $60,000.

18. 

In 2009, Sam Dunn provided more than half the support for his wife, his father's brother, and his cousin. Sam's wife was the only relative who was a member of Sam's household. None of the relatives had any income, nor did any of them file an individual or a joint return. All of these relatives are U.S. citizens.

19. 

A husband and wife can file a joint return even if

20.

Which of the following requirements must be met in order for a single individual to qualify for the additional standard deduction?