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In terms of timing as to any one year, the Tax Tables are available before the Tax Rate Schedules.

A) True
B) False

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All exclusions from gross income are reported on Form 1040.

A) True
B) False

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Match the statements that relate to each other. -Additional standard deduction


A) Available to a 70-year-old father claimed as a dependent by his son.
B) Equal to tax liability divided by taxable income.
C) The highest income tax rate applicable to a taxpayer.
D) Not eligible for the standard deduction.
E) No one qualified taxpayer meets the support test.
F) Taxpayer's ex-husband does not qualify.
G) A dependent child (age 18) who has only unearned income.
H) Highest applicable rate is 39.6%.
I) Applicable rate could be as low as 0%.
J) Maximum rate is 28%.
K) Income from foreign sources is not subject to tax.
L) No correct match provided.

M) B) and K)
N) E) and J)

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As opposed to itemizing deductions from AGI, the majority of individual taxpayers choose the standard deduction.

A) True
B) False

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In 2017, Hal furnishes more than half of the support of his ex-wife and her father, both of whom live with him.The divorce occurred in 2016.Hal may claim the father-in-law and the ex-wife as dependents.

A) True
B) False

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In applying the gross income test in the case of dependents that are married, could the application of community property laws have any effect? Explain.

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Most often, the application of community...

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For dependents who have income, special filing requirements apply.

A) True
B) False

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Match the statements that relate to each other.Note: Some choices may be used more than once. -Kiddie tax does not apply


A) Not available to 65-year old taxpayer who itemizes.
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C) Largest basic standard deduction available to a dependent who has no earned income.
D) Considered for dependency exemption purposes.
E) Qualifies for head of household filing status.
F) A child (age 15) who is a dependent and has only earned income.
G) Considered in applying gross income test (for dependency exemption purposes) .
H) Not considered in applying the gross income test (for dependency exemption purposes) .
I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J) Exception to the support test (for dependency exemption purposes) .
K) A child (age 16) who is a dependent and has only unearned income of $4,500.
L) No correct match provided.

M) E) and G)
N) A) and J)

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The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

A) True
B) False

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Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI, Donna cannot claim the standard deduction.

A) True
B) False

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Match the statements that relate to each other. -Gain on collectibles (held more than one year)


A) Available to a 70-year-old father claimed as a dependent by his son.
B) Equal to tax liability divided by taxable income.
C) The highest income tax rate applicable to a taxpayer.
D) Not eligible for the standard deduction.
E) No one qualified taxpayer meets the support test.
F) Taxpayer's ex-husband does not qualify.
G) A dependent child (age 18) who has only unearned income.
H) Highest applicable rate is 39.6%.
I) Applicable rate could be as low as 0%.
J) Maximum rate is 28%.
K) Income from foreign sources is not subject to tax.
L) No correct match provided.

M) B) and G)
N) F) and G)

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Under what circumstances, if any, may an ex-spouse be claimed as a dependent?

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As an ex-spouse does not meet the relati...

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Match the statements that relate to each other. -Tax Rate Schedule


A) Available to a 70-year-old father claimed as a dependent by his son.
B) Equal to tax liability divided by taxable income.
C) The highest income tax rate applicable to a taxpayer.
D) Not eligible for the standard deduction.
E) No one qualified taxpayer meets the support test.
F) Taxpayer's ex-husband does not qualify.
G) A dependent child (age 18) who has only unearned income.
H) Highest applicable rate is 39.6%.
I) Applicable rate could be as low as 0%.
J) Maximum rate is 28%.
K) Income from foreign sources is not subject to tax.
L) No correct match provided.

M) C) and K)
N) D) and E)

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For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

A) True
B) False

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Match the statements that relate to each other.Note: Some choices may be used more than once. -Scholarship funds for tuition


A) Not available to 65-year old taxpayer who itemizes.
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C) Largest basic standard deduction available to a dependent who has no earned income.
D) Considered for dependency exemption purposes.
E) Qualifies for head of household filing status.
F) A child (age 15) who is a dependent and has only earned income.
G) Considered in applying gross income test (for dependency exemption purposes) .
H) Not considered in applying the gross income test (for dependency exemption purposes) .
I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J) Exception to the support test (for dependency exemption purposes) .
K) A child (age 16) who is a dependent and has only unearned income of $4,500.
L) No correct match provided.

M) A) and G)
N) A) and D)

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Katrina, age 16, is claimed as a dependent by her parents.During 2017, she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,950 ($5,600 earned income + $350).

A) True
B) False

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For the current year, David has wages of $80,000 and the following property transactions:  Stock investment sales-  Long-term capital gain $9,000 Short-term capital loss (12,000)  Loss on sale of camper (purchased 4 years ago and used for family vacations)  (2,000) \begin{array}{lr}\text { Stock investment sales- }\\\text { Long-term capital gain } & \$ 9,000 \\\text { Short-term capital loss } & (12,000) \\\text { Loss on sale of camper (purchased 4 years ago and used for family vacations) } & (2,000) \end{array} What is David's AGI for the current year?


A) $76,000.
B) $77,000.
C) $78,000.
D) $89,000.
E) None of these.

F) B) and E)
G) A) and E)

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In resolving qualified child status for dependency exemption purposes, why are tiebreaker rules necessary? Can these rules be waived?

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A person being claimed as a de...

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Which, if any, of the following is a correct statement relating to the kiddie tax?


A) If the parents are divorced, the income of the noncustodial parent is used to determine the allocable parental tax.
B) The components for the application of the kiddie tax are not subject to adjustment for inflation.
C) If the kiddie tax applies, the parents must include the income of the child on their own income tax return.
D) The kiddie tax does not apply if both parents of the child are deceased.
E) None of these.

F) A) and C)
G) A) and E)

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Edgar had the following transactions for 2017:  Salary $80,000 Alimony paid (4,000) Recovery from car accident- Personal injury damages $40,000 Punitive damages70,000‾110,000 Gift from parents 20,000 Property sales- Loss on sale of boat (used for pleasure and owned 4 years) ($4,000)Gain on sale of ADM stock (held for 10 months as an investment) 4,000‾(−0−)\begin{array}{llr} \text { Salary } &&\$80,000\\ \text { Alimony paid } &&(4,000)\\ \text { Recovery from car accident-} &\\ \text { Personal injury damages } &\$40,000\\ \text { Punitive damages} &\underline{70,000}&110,000\\ \text { Gift from parents } &&20,000\\ \text { Property sales-} &\\ \text { Loss on sale of boat (used for pleasure and owned 4 years) } &(\$4,000)\\ \text {Gain on sale of ADM stock (held for 10 months as an investment) } &\underline{4,000}&(-0-)\\\end{array} What is Edgar's AGI for 2017?

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$150,000.$80,000 (salary) - $4,000 (alim...

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