Transcript Chapter 3 Responder Questions

Chapter 3
Computing the Tax
Comprehensive Volume
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Responder Question
TRUE/FALSE
As used in the income tax formula, gross
income would not include the receipt of a
loan the taxpayer obtained from a bank.
C3-2
Responder Question
TRUE/FALSE
As used in the income tax formula, gross
income would not include the receipt of a
loan the taxpayer obtained from a bank.
ANS: T
Borrowing money does not result in gross
income.
C3-3
Responder Question
For the 2012 tax year, Grandpa is single,
blind, and age 65. He paid $750 in real
estate property taxes and has no other
deductions. What is his Standard
Deduction?
C3-4
Responder Question
For the 2012 tax year, Grandpa is single,
blind, and age 65. He paid $750 in real
estate property taxes and has no other
deductions. What is his Standard
Deduction?
SD = $5,950 (BSD) + $1,450 (ASD) +
$1,450 (ASD) = $8,850
C3-5
Responder Question
TRUE/FALSE
Darren, age 20 and not disabled, earns
$4,500 during 2012. Darren’s parents
cannot claim him as a dependent unless he
is a full-time student.
C3-6
Responder Question
TRUE/FALSE
Darren, age 20 and not disabled, earns
$4,500 during 2012. Darren’s parents
cannot claim him as a dependent unless he
is a full-time student.
ANS: T
Being age 20, Darren cannot be a qualifying child
unless he is a full-time student. As a qualifying
child, he is exempt from the gross income test.
C3-7
Responder Question
For the 2012 tax year, Homer & Marge are
married filing jointly with 3 dependents.
Their AGI is $350,000. In whole dollars,
what is the amount of their exemption?
C3-8
Responder Question
For the 2012 tax year, Homer & Marge are
married filing jointly with 3 dependents.
Their AGI is $350,000. In whole dollars,
what is the amount of their exemption?
$19,000 = $3,800 x 5
C3-9
Responder Question
TRUE/FALSE
Surviving spouse filing status begins in the
year in which the deceased spouse died.
C3-10
Responder Question
TRUE/FALSE
Surviving spouse filing status begins in the
year in which the deceased spouse died.
ANS: F
Surviving spouse filing status begins in the year
following the year of death. The surviving
taxpayer files MFJ or MFS in the year in which
the deceased spouse died.
C3-11
Responder Question
TRUE/FALSE
Warren sold his personal use automobile for
a loss of $9,000. He also sold a personal
coin collection for a gain of $10,000. As a
result of these sales, $1,000 is subject to
income tax.
C3-12
Responder Question
TRUE/FALSE
Warren sold his personal use automobile for a loss
of $9,000. He also sold a personal coin collection
for a gain of $10,000. As a result of these sales,
$1,000 is subject to income tax.
ANS: F
Warren must recognize a capital gain of $10,000 on
the sale of the coin collection. The $9,000 loss on the
sale of the personal use automobile is nondeductible.
C3-13
If you have any comments or suggestions concerning this
PowerPoint Presentation for South-Western Federal
Taxation, please contact:
Dr. Donald R. Trippeer, CPA
[email protected]
SUNY Oneonta
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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