Question
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
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 |
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