12) Which of the following series of inequalities is generally most accurate? A) Gross income adjusted gross income 2 taxable income B) Adjusted gross income 2 gross income 2 taxable income C) Adjusted gross income 2 taxable income 2 gross income taxable income 2 adjusted gross income D) Gross income 13) Joanna received $60,000 compensation from her employer, the value of her stock in ABC company appreciated by $5,000 during the year (but she did not sell any of the stock), she received $30,000 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items? A) $60,000, B) $65,000 C) $95,000. D) $90,000 14) Which of the following shows the correct relationship among standard deduction amounts for the respective filing statuses? A) Single > Head of Household> Married Filing Jointly B) Married Filing Jointly>Married Filing Separately> Head of Household C) Married Filing Jointly> Head of Household> Single D) Head of Household > Married Filing Separately > Married Filing Jointly 15) Which of the following statements regarding tax credits is true? A) Tax credits reduce taxable income dollar for dollar. B) Tax credits provide a greater tax benefit the greater the taxpayer's marginal tax rate. C) Tax credits reduce taxes payable dollar for dollar. D) None of these statements is true. 16) Jamison's gross tax liability is $7.000. Jamison had $2,000 of available credits and he had $4,000 of taxes withheld by his employer. What is Jamison's taxes due (or taxes refunded) with his tax return? A) $5,000 taxes due. B) $1,000 taxes due. C) $1,000 tax refund. D) $3,000 taxes due. 17) Which of the following relationships does NOT pass the relationship test for a qualifying child? A) Stepsister's daughter. B) Half-brother C) Cousin. D) Stepsister. I P a g e