Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of...

All of the following assets are capital assets, except: a. A personal automobile b. IBM stock c. A childs bicycle d. Personal furniture e. Used car inventory held by a car dealer

Harold, a single taxpayer, has $30,000 of ordinary income after the standard deduction, and $10,000 in long-term capital gains, for total taxable income of $40,000. For 2022, single taxpayers pay 0...

In 2022, Tim, a single taxpayer, has ordinary income of $30,000. In addition, he has $2,000 in short-term capital gains, long-term capital losses of $10,000, and long-term capital gains of $4,000....

Serena is a 48-year-old single taxpayer. She operates a small business on the side as a sole proprietor. Her 2022 Schedule C reports net profits of $15,000. Her employer does not offer health...

Which type of insurance is not deductible as self-employed health insurance? a. Medical insurance b. Disability insurance c. Dental insurance d. Long-term care insurance e. Spousal medical insurance

What is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2022, assuming they earn $70,000 in total and are not participants in pension plans?

Martha and Rob, a married couple, under 50 years of age, have adjusted gross income on their 2022 joint income tax return of $45,000, before considering any IRA deduction. Martha and Rob have no...

Mary has a Roth IRA held more than five years to which she has contributed $30,000. The IRA has a current value of $62,000. Mary is 55 years old and she takes a distribution of $40,000. How much of...

Mindy has a Roth IRA held longer than five years to which she has contributed $30,000. The IRA has a current value of $62,000. Mindy is 55 years old and she takes a distribution of $40,000 after...

The cost of which of the following expenses is not deductible as a medical expense on Schedule A, before the 7.5 percent of adjusted gross income limitation? a. A psychiatrist b. Botox treatment to...

Which of the following is not considered a deductible medical expense? a. Once daily multivitamin b. Prescription eyeglasses c. Acupuncture d. Filling a tooth cavity

Which of the following taxes may be deducted as an itemized deduction? a. State gasoline taxes b. Local property taxes c. Federal income taxes d. Social Security taxes e. Medicare taxes

Antonio is a small business owner and files jointly with his spouse. In 2022, he generates $100,000 of net profits from his business. His spouse, Maria, has $4,000 of state income tax withheld from...

On January 3, 2022, Carey discovers his diamond bracelet has been stolen. The bracelet had a fair market value and adjusted basis of $7,500. Assuming Carey had no insurance coverage on the bracelet...

Lamden Company paid its employee, William, wages of $263,000 in 2022. Calculate each of the following: Social Security withheld from Williams wages, Medicare withheld from Williams wages, Social...

In 2022, Mary sells for $24,000 a machine used in her business. The machine was purchased on May 1, 2019, at a cost of $21,000. Mary has deducted depreciation on the machine of $5,000. Mary has no...

If a taxpayer does not have enough tax liability to use all the available adoption credit, the unused portion may be carried forward for how many years? a. Two b. Three c. Five d. There is no...

John, a single father, has AGI of $83,000 in 2022. During the year, he pays $4,000 in quali fied tuition for his dependent son, who just started attending Small University. What is Johns American...

In September 2022, Sam pays $1,100 to take a course to improve his job skills to qualify for a new position at work. Assuming there is no phase-out of the credit, his lifetime learning credit for...

Which of the following payments does not qualify as a child care expense for pur poses of the child and dependent care credit? a. Payments to a day care center b. Payments to the taxpayers sister (21...

Assuming they all meet the income requirements, which of the following taxpayers qualify for the earned income credit in 2022? a. A married taxpayer that lives with their spouse and who files a...

Define income in respect of a decedent and provide an example of IRD.

The 3.8 percent Medicare tax on net investment income applies to: a. Tax-exempt interest income b. Interest and dividends c. IRA distributions d. Wages

Which of the following is an adjustment for AMT purposes? a. Itemized deduction for home mortgage interest b. Itemized deduction for charitable contributions c. State income tax refunds d. Itemized...

Which of the following is an option for a minor with unearned income of $3,500? a. Pay tax at trust and estate rates b. Pay tax at the parents rate c. Pay $0 tax since the income is unearned d. Pay...

Which of the following is an acceptable method of accounting under the tax law? a. The accrual method b. The hybrid method c. The cash method d. All of the above are acceptable e. None of the above

Which of the following items is deductible as a miscellaneous deduction on Schedule A? a. Investment expenses b. Gambling losses to the extent of gambling winnings c. Unreimbursed business expenses...

Which of the following would typically be deductible as a casualty loss in 2022? a. Long-term damage to a home from termites b. An automobile accident during the daily commute c. A theft of a big...

Which of the following transportation-related costs paid by an employer to or on behalf of an employee cannot be excluded from gross income? a. Providing bus passes to employees for a $20 discount....

FahidSafdir purchased a laptop from Pro Comp Industries Inc.s online store for business use. After taking delivery, he discovered that the laptop had been preloaded with an adware program called...

Write out each of the following syllogistic forms, using S and P as the subject and predicate terms of the conclusion, and M as the middle term. (Refer to the chart of the four syllogistic figures,...

Write out each of the following syllogistic forms, using S and P as the subject and predicate terms of the conclusion, and M as the middle term. (Refer to the chart of the four syllogistic figures,...

I believe that it must be the policy of the United States to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures. I believe that we must assist...

Since London is north of Paris and south of Edinburgh, it follows that Paris is south of Edinburgh. The following arguments are deductive. Determine whether each is valid or invalid, and note the...

The longest river in South America is the Amazon, and the Amazon flows through Brazil. Therefore, the longest river in South America flows through Brazil. The following arguments are deductive....

If national elections deteriorate into TV popularity contests, then smooth-talking morons will get elected. Therefore, if national elections do not deteriorate into TV popularity contests, then...

The following symbolized arguments are missing a premise. Write the premise needed to derive the conclusion (last line ), and supply the justification for the conclusion. Try to construct the...

The following symbolized arguments are missing a premise. Write the premise needed to derive the conclusion (last line ), and supply the justification for the conclusion. Try to construct the...

For each of the following lists of premises, derive the indicated conclusion and complete the justification. For double negation, avoid the occurrence of triple tildes.

Use the eighteen rules of inference to derive the conclusions of the following symbolized arguments. 1. F (A.K) 2. G (~A~K) 3. FVG / A=K

Use the eighteen rules of inference to derive the conclusions of the following symbolized arguments. 1. Iv (N.F) 2. IDF IF

Use the eighteen rules of inference to derive the conclusions of the following symbolized arguments. 1. T (HJ) 2. (HVN) DT | T=H

Use conditional proof and the eighteen rules of inference to derive the conclusions of the following symbolized arguments. Having done so, attempt to derive the conclusions without using conditional...

Use conditional proof and the eighteen rules of inference to derive the conclusions of the following symbolized arguments. Having done so, attempt to derive the conclusions without using conditional...

Create two symbolized arguments consisting of at least two premises each, and which invite indirect proof to derive the conclusion. The arguments should look like those in Part I of this section....

Use conditional proof or indirect proof and the eighteen rules of inference to establish the truth of the following tautologies.

Use the eighteen rules of inference to derive the conclusions of the following symbolized arguments. Do not use either conditional proof or indirect proof.

Use the eighteen rules of inference to derive the conclusions of the following symbolized arguments. Do not use either conditional proof or indirect proof.

Gamestat owns a website that compiles sports statistics from other websites and provides them to subscribers in a single integrated platform. Users of Gamestat can quickly find up-to-date information...

The classification of a worker as an employee or an independent contractor is: a. Made by the employer b. Made by the employee c. Based on a negotiation between the employer and employee d. Based on...

Which of the following is likely to indicate classification of a worker as an employee: a. The worker must provide their own tools and equipment. b. The worker can provide services at a location they...

In 2022, Jonahs employer pays $8,700 for health insurance premiums for Jonah, Jonahs spouse, and Jonahs three dependent children. Jonah has $100 per month withheld from his pay toward the cost as...

In 2022, the limit for contributions to a health care flexible spending account is: a. $500 b. $1,200 c. $2,850 d. $5,000

Which of the following fringe benefits can be offered to only executives and remain excluded from employee gross income? a. Parking b. Group term life insurance up to $50,000 c. De minimis cafeteria...

Which of the following might result in life insurance proceeds that are taxable to the recipient? a. A life insurance policy in which the insured is the son of the taxpayer and the beneficiary is the...

John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for fifty-six days and used the house for fourteen days during the summer. The house remained vacant...

Helen, a single taxpayer, has modified adjusted gross income (before passive losses) of $126,000. During the tax year, Helens rental house generated a loss of $15,000. Assuming Helen is actively...

Which of the following is not classified as portfolio income for tax purposes? a. Interest income on savings accounts b. Dividends paid from a credit union c. Net rental income from real estate...

Which of the following types of income is passive income? a. Net rental income from real estate limited partnership investments b. Dividends from domestic corporations c. Wages d. Interest income...

Which of the following is a false statement about Health Savings Accounts (HSAs)? a. Taxpayers who contribute to an HSA must carry qualifying high-deductible health insurance. b. HSAs are available...

During 2022, Jerry is a self-employed therapist, and his net earned income is $160,000 from his practice. Jerrys SEP Plan, a defined contribution plan, states that he will contribute the maximum...

Marge has a Roth IRA held more than five years to which she has contributed $38,000. The IRA has a current value of $62,000. Marge is 65 years old and she takes a distribution of $40,000. How much of...

Which of the following would not be considered a prohibited transaction between an IRA and its owner? a. The owner taking a loan from the IRA b. The owner selling property to the IRA c. Investing in...

The itemized deduction for state and local taxes in 2022 is a. Total taxes less 10 percent of AGI b. Limited to no more than $10,000 c. Unlimited d. Only deductible if the taxes are business related...

Carrie, a single taxpayer, finished her undergraduate degree using money from a student loan. She earned $56,000 her first year and paid $2,600 in interest in 2022. She can take a deduction for...

Which of the following interest expense amounts is not deductible in the current year? a. Education loan interest of $2,000, assuming the taxpayer has income of $30,000. b. Home equity loan interest...

Rico a single taxpayer, makes $5,000 of cash donations in 2022. His standard deduction exceeds his itemized deductions including the contribution. What amount will Rico deduct for charitable...

Alice purchases a rental house on June 22, 2022, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the...

An asset (not an automobile) put in service in June 2022 has a depreciable basis of $24,000 and a recovery period of 5 years. Assuming bonus depreciation is used, half-year convention and no election...

Micahs business has four different building projects underway. Select the project that is likely to be immediately deductible. a. Micah is installing a new roof on a warehouse. The roof has started...

Which if the following is not generally required to be capitalized? a. An adaption to a better use b. A betterment by expanding the size of a building c. A routinely performed item of maintenance d....

Which of the following is Section 1231 property? a. Land held for investment purposes b. A machine used in a business c. Accounts receivable d. Inventory e. Paintings owned by the artist

Which of the following is true about the MACRS depreciation system: a. A salvage value must be determined before depreciation percentages are applied to depreciable real estate. b. Residential rental...

When does the required annual payment for estimated income taxes increase to 110% of the prior year tax liability? a. When the current year taxable income exceeds $100,000. b. When prior year...

When a taxpayer capitalizes an expenditure: a. The taxpayer pays for it with debt or a liability b. The amount is expensed immediately in accordance with ordinary and necessary deduction rules c. The...

In connection with the adoption of an eligible child who is a U.S. citizen and who is not a child with special needs, Sean pays $4,000 of qualified adoption expenses in 2021 and $3,000 of qualified...

John and Joan pay $16,500 of qualified adoption expenses in 2022 to finalize the adoption of a qualified child. Their AGI is $199,000 for 2022. What is their adoption credit for 2022? a. $0 b....

For purposes of determining income eligibility for the premium tax credit, household AGI is a. AGI for the taxpayer and spouse b. AGI for the taxpayer, spouse, and any other household members...

The alternative minimum tax exemption: a. Is a direct reduction of the tentative minimum tax b. Is a reduction of alternative minimum taxable income for certain taxpayers c. Permits certain taxpayers...

An individual taxpayer will be liable for alternative minimum tax when: a. The regular tax liability exceeds the tentative minimum tax b. The tentative minimum tax exceeds the regular tax liability...

In which of the following ways are tax returns selected for audits? a. Through the Discriminant Function System b. Through informants c. Through news sources d. Through information matching e. All of...

The IRS does not have the authority to: a. Examine a taxpayers books and records b. Summon taxpayers to make them appear before the IRS c. Summon third parties for taxpayer records d. Place a lien on...

An asset (not an automobile) put in service in June 2022 has a depreciable basis of $25,000 and a recovery period of 5 years. Assuming half-year convention, no bonus depreciation, and no election to...

The rainfall in Seattle has been more than 15 inches every year for the past thirty years. Therefore, the rainfall next year will probably be more than 15 inches. Determine whether the following...

People have been listening to rock and roll music for over a hundred years. Probably people will still be listening to it a year from now. The following arguments are inductive. Determine whether...

Some individuals prone to violence are not men who treat others humanely. Some police officers are individuals prone to violence. Therefore, some police officers are not men who treat others...

Some snowflakes are not uniform solids. All snowflakes are six-pointed crystals. Therefore, some six-pointed crystals are not uniform solids. Use Venn diagrams to determine whether the following...

Reconstruct the following syllogistic forms and use the five rules for syllogisms to determine if they are valid from the Boolean standpoint, conditionally valid from the Aristotelian standpoint, or...

Reconstruct the following syllogistic forms and use the five rules for syllogisms to determine if they are valid from the Boolean standpoint, conditionally valid from the Aristotelian standpoint, or...

Brazil has a huge foreign debt. Therefore, either Brazil or Argentina has a huge foreign debt. (B, A) Translate the following arguments into symbolic form. Then determine whether each is valid or...

Sebastian is the owner of a famous fish restaurant Poissons. He has just engaged a top chef, Pierre, who has contracted to work solely for him during the next six months, and not to work in any other...

For each of the following taxpayers, indicate the filing status for the taxpayer(s) for 2022 using the following legend: ASingle BMarried filing a joint return CMarried filing separate returns DHead...

Which of the following tax forms are used by individuals in 2022? a. 1040A b. 1040-EZ c. 1040-SR d. 1120

The amendment to the United States Constitution that authorized the federal income tax is: a. Thirteenth Amendment in 1865 b. Fourteenth Amendment in 1868 c. Sixteenth Amendment in 1913 d....

The current income tax system is: a. Designed solely to raise money for the government b. Authorized by the founding fathers when the government was formed c. Not designed with social objectives in...

The definition of gross income in the tax law is: a. All items specifically listed as income in the tax law b. All cash payments received for goods provided and services performed c. All income from...

In 2022, which of the following types of income is excluded from gross income? a. Unemployment compensation b. Income earned illegally c. Dividends from foreign corporations d. Corporate bond...

Which of the following prizes or awards is not taxable? a. A crystal paperweight worth $125 given to an employee for achieving 10 years of service to the company b. Prizes from a television game show...

Which of the following is correct for Qualified Tuition Programs (Section 529 plans)? a. Contributions are deductible, and qualified educational expense distributions are tax-free. b. Contributions...