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Question;89. Mr. and Mrs. Arlette spent $5,900 for child care for;their 12-year-old daughter. Mr. Arlette's earned;income was $178,000, Mrs. Arlette's earned income was;$33,100, and the AGI on their joint return was;$225,200. Calculate their dependent care credit.;A. $5,900;B. $1,180;C. $600;D. $0;90. Mr. and Mrs. Borem spent $1,435 for child care for their;two dependent children, who are two and four;years old. Mr. Borem's earned income was $55,870, Mrs. Borem;had no earned income, and the AGI on;their joint return was $66,210. Calculate their dependent;care credit.;A. $0;B. $287;C. $502;D. $1,435;91. Mr. and Mrs. Harvey's tax liability before credits was;$1,675. Their income tax withholding was $1,050;and they are entitled to a $1,189 earned income credit.;Which of the following statements is true?;A. The Harveys are entitled to a $1,050 tax refund.;B. The Harveys are entitled to a $1,189 tax refund.;C. The Harveys are entitled to a $564 tax refund.;D. The Harveys owe no additional tax but they are not;entitled to a refund.;92. Mr. Marshall was employed by IMP Inc. until October;when he accepted a new position with Turine Inc.;Mr. Marshall earned $129,000 compensation from IMP and;$36,000 compensation from Turine. Which;of the following statements is false?;A. Turine must withhold Social Security tax from Mr.;Marshall's $36,000 compensation.;B. Turine must withhold Medicare tax from Mr. Marshall's;$36,000 compensation.;C.;Mr. Marshall is entitled to an income tax credit for excess;Social Security tax withheld by his;employers this year.;D. None of the above is false.;93. Mrs. Lincoln was employed by GGH Inc. until October;when he accepted a new position with Murdock;Inc. Mrs. Lincoln earned $145,000 compensation from GGH and;$36,000 compensation from Murdock.;Which of the following statements is false?;A. Murdock must withhold Social Security tax from Mrs.;Lincoln's $36,000 compensation.;B. Murdock must withhold Medicare tax from Mrs. Lincoln's;$36,000 compensation.;C.;Mrs. Lincoln is entitled to an income tax credit for both;excess Social Security tax and excess Medicare;tax withheld by her employers this year.;D.;Both GGH and Murdock must pay the full amount of employer;payroll tax on the compensation paid;to Mrs. Lincoln.;94. Which of the following statements concerning the;individual alternative minimum tax (AMT) is true?;A.;The calculation of alternative minimum taxable income begins;with taxable income for regular tax;purposes.;B. A taxpayer with no tax preference items for the year;can't be liable for AMT.;C. An individual is allowed the same exemption as a;corporation in calculating the AMT base.;D. The individual AMT rate is a flat 28%.;95. Ruth Anne, a single taxpayer, reported $152,600;alternative minimum taxable income before any;exemption on her Form 1040. Calculate Ruth Anne's;alternative minimum tax exemption.;A. $10,025;B. $38,425;C. $48,450;D. None of the above;96. Mr. and Mrs. Stern reported $312,400 alternative minimum;taxable income before any exemption on their;Form 1040. Calculate their alternative minimum tax;exemption.;A. $0;B. $40,600;C. $74,450;D. None of the above;97. Mr. and Mrs. Reid reported $135,700 ordinary taxable;income for regular tax purposes and had $58,200;positive AMT adjustments and preferences. Compute their;tentative AMT.;A. $31,967;B. $33,911;C. $37,161;D. $40,019;98. Mr. and Mrs. Luang reported $417,900 ordinary taxable;income for regular tax purposes and had $39,100;positive AMT adjustments and preferences. Compute their;tentative AMT.;A. $124,460;B. $127,960;C. $104,594;D. None of the above;99. Mr. and Mrs. King's regular tax liability on their joint;return was $111,850. Which of the following;statements is true?;A. If the Kings' tentative minimum tax is $103,300, their;total tax liability is $103,300.;B. If the Kings' tentative minimum tax is $103,300, their;total tax liability is $111,850.;C. If the Kings' tentative minimum tax is $143,800, their;total tax liability is $143,800.;D. Both b. and c. are true.;100.Ms. Dorley's regular tax liability on her Form 1040 is;$45,890. Which of the following statements is;true?;A. If Ms. Dorley's tentative minimum tax is $50,700, her;total tax liability is $97,590.;B. If Ms. Dorley's AMT is $6,380, her total tax liability is;$52,270.;C. If Ms. Dorley's AMT is $10,112, her total tax liability;is $45,890.;D. If Ms. Dorley's tentative minimum tax is $38,682, her;total tax liability is $38,682.;101.Ms. Kilo's regular income tax before credits on her Form;1040 is $45,890, and she has a $5,700 minimum;tax credit from a previous year. Which of the following;statements is true?;A. If Ms. Kilo's tentative minimum tax is $50,500, her total;tax liability is $44,800.;B. If Ms. Kilo's tentative minimum tax is $42,400, her total;tax liability is $40,190.;C. If Ms. Kilo's tentative minimum tax is $42,400, her total;tax liability is $42,400.;D. Both a. and c. are true.;102.Last year, Mr. Corbett's AGI was $141,000, and his total;tax liability was $33,650. This year, his total;tax liability is $35,290. Compute the minimum amount of;current year tax that Mr. Corbett had to prepay;(withholding and estimated payments) to avoid an underpayment;penalty.;A. $31,761;B. $33,650;C. $30,285;D. $35,290;103.Last year, Mr. Tyker's AGI was $182,800, and his total;tax liability was $51,650. This year, his total;tax liability is $65,440. Compute the minimum amount of;current year tax that Mr. Tyker had to prepay;(withholding and estimated payments) to avoid an;underpayment penalty.;A. $65,440;B. $51,650;C. $56,815;D. $58,896;104.Which of the following statements regarding tax payments;is true?;A.;Sole proprietors must make quarterly estimated payments of income;tax, but self-employment tax is;not due until the return is filed.;B.;Sole proprietors must make quarterly estimated payments of;self-employment tax, but income tax is not;due until the return is filed.;C. Sole proprietors must make quarterly estimated payments;of income tax and self-employment tax.;D. Sole proprietors are not required to pay income tax or;self-employment tax until the return is filed.;105.Which of the following statements concerning extensions;of time to file an individual tax return is true?;A. The extension of time to file does not extend the time;for payment of tax.;B. The extension of time to file is for four months.;C.;An individual who requests an extension of time to file must;provide the IRS with a reasonable;explanation.;D. The IRS may disapprove an extension request if the;taxpayer fails to provide a reasonable explanation.;106.Which of the following statements concerning extensions;of time to file an individual tax return is false?;A. The extension of time to file does not extend the time;for payment of any tax due.;B.;An individual may receive an automatic extension of the;filing date without providing any explanation;to the IRS.;C. The extended due date of a calendar-year individual tax;return is October 15 of the following year.;D. An extension request must be filed before the end of the;taxable year.;107.Mr. and Mrs. Reece couldn't complete their 2010 Form;1040 before April 15, 2011. They estimate that;they will have a $700 balance of tax due with the return.;Which of the following statement is true?;A. If the Reeces fail to file their return by April 15, they;will owe penalties to the IRS.;B.;The Reeces can file an extension request by April 15 to;extend the tax payment and filing date for six;months without penalty.;C.;The Reeces can file an extension request by April 15 to;extend the filing date for six months without;penalty. They must pay the $700 estimated balance of tax due;with the extension request.;D. None of the above is true.;108.Determine Mr. Smith's 2011 filing status in each of the;following independent cases.;a. Mr. Smith and Mrs. Smith were legally divorced on;December 1. Mr. Smith has not remarried and has;no dependent children.;b. Mr. Smith and the first Mrs. Smith were legally divorced;on February 10. Mr. Smith remarried the;second Mrs. Smith on December 5. He has no dependent;children.;c. Mrs. Smith dies on June 22. Mr. Smith has not remarried;and has no dependent children.;d. Mrs. Smith died on November 1, 2009. Mr. Smith has not;remarried and maintains a home for one;dependent child.;e. Mrs. Smith died on April 3, 2010. Mr. Smith has not;remarried and has no dependent children.;f. Mr. and Mrs. Smith were legally divorced on September 10;2007. Mr. Smith has not remarried and;maintains a home for his two dependent children.;109.Mr. and Mrs. Bennett file a joint tax return. Determine;if each of the following unmarried individuals is;either a qualifying child or a qualifying relative for whom;the couple can claim an exemption.;a. Son Alex, age 22, lives in his parents' home and works;fulltime as a tax accountant. Alex is selfsupporting;except for the fact that he does not pay rent to his;parents.;b. Daughter Samantha, age 20, is a full-time college;student. Samantha lives in a dormitory during the;school year, but her parents' home is her permanent;residence and they provide 100% of her financial;support.;c. Mr. Bennett's brother Max is 42 years old and mentally;handicapped. Max lives in a privately operated;group home, and Mr. and Mrs. Bennett provide 100% of his;financial support. Max has no gross income.;d. Mrs. Bennett's mother, Vera, age 67, lives in a;retirement community. Mr. and Mrs. Bennett provide;about 75% of her financial support. Vera earned $5,000 this;year as a part-time receptionist.;110.Eileen, a single individual, had $125,000 taxable;income. Compute her income tax assuming that;a. Taxable income includes no capital gains.;b. Taxable income includes $14,000 capital gain eligible for;the 15% preferential rate.;111.Alice Grim, a single taxpayer, has $219,000 taxable;income, which includes a $20,000 capital gain;taxed at 15%. Her alternative minimum taxable income in;excess of her exemption amount is $237,400.;Compute Alice's regular tax, AMT, and total tax.

 

Paper#44721 | Written in 18-Jul-2015

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