1. Which of the following is not normally a tax-paying entity under the Federal income tax?

a. The regular corporation

b. The estate of a deceased individual

c. The partnership entity

d. A trust for the benefit of a minor child

2. Sandy and Dave formed a law partnership, agreeing to split the income 50:50. The partnership had net income of $100,000. Dave withdrew $55,000 throughout the year, and Sandy withdrew $50,000. Dave and Sandy had no other income. Because of the partnership activities, Dave's A.G.I. increased by

	a.	$100,000
	b.	$55,000
	c.	$50,000
	d.	$35,000

3. An S-corporation's tax treatment is most similar to the

	a.	sole proprietorship
	b.	partnership
	c.	individual
	d.	corporation

4. G is an eleven-year-old heiress whose share of income from various sources is as follows for the current year:

G's Share of

Entity's G's Share of

Source Net Income Distributions

LM Trust $45,000 $30,000

ABC Partnership 80,000 22,000

XYZ Corporation, a C corporation 480,000 76,000

Interest from bank savings account 50,000

G's A.G.I. (ignoring the deduction for one-half of any self-employment tax, if any) is how much?

	a.	$178,000
	b.	$605,000
	c.	$251,000
	d.	$236,000

5. F, a single taxpayer, age 42, had income and expenses as follows for 2021:

Total income $33,000

Exclusions (municipal bond interest) 2,000

Deductions for A.G.I. 1,200

Total itemized deductions 16,000

Standard deduction 12,550

What are F's adjusted gross income and her taxable income, respectively?

	a.	$29,800; $13,800
	b.	$29,800; $17,250
	c.	$29,800; $1,250
	d.	$33,000; $17,000