1. (TCO 1) The federal income tax applicable to corporations: (Points : 5) | requires the determination of adjusted gross income. allows a deduction for dependency exemptions. allows a deduction for personal exemptions. allows a deduction for the standard deduction. None of the above | 2. (TCOs 2, 3, 6, 8, 9, & 10) Jude has a NLTCG of $25,000 and a NSTCL of $30,000. What is Jude's 2011 capital loss deduction if Jude's adjusted gross income for 2011 (before considering capital asset transactions) is $90,000? (Points : 5) | $90,000 $30,000 $25,000 $3,000 None of the above | 3. (TCOs 2, 3, 6, 8, 9, & 10) Paris is a cash basis landlord. An earthquake destroyed one of his residential rental buildings. Even though the lease required the tenants (all cash basis) to continue to pay rent, Paris accepts a payment of $2,000 in full cancellation of the lease. As a result of these events: (Points : 5) | Paris has $2,000 of ordinary income. Paris has $2,000 of capital gain. Paris's tenants have $2,000 of ordinary income. Paris has a $2,000 capital loss. None of the above | 4. (TCOs 2, 3, 6, 8, 9, & 10) Equity considerations can be used to justify: (Points : 5) | the foreign tax credit. the credit for child and dependent care expenses. the deduction for charitable contributions. the tax treatment of prepaid subscription revenue. None of the above | 5. (TCOs 2, 3, 6, 8, 9, & 10) During the current year, Carolyn is supported as follows: | Percent of Support | Torie (a son) | 24% | Brad (a son) | 10% | Rosemary (a daughter) | 27% | Jerome (unrelated but a good friend of the family) | 15% | Self-support | 24% | During the year, Carolyn lives with Torie in his home for 10 months and in her home for 2 months. Under a multiple-support agreement, who could qualify for the dependency deduction for Carolyn? (Points : 5) | Torie or Brad Torie or Rosemary Torie, Brad, or Jerome Torie, Brad, Rosemary, or Jerome None of the above | 6. (TCOs 2, 3, 6, 8, 9, & 10) Which statement is true with respect to letter rulings? (Points : 5) | They are issued by the Regional Office of the IRS. They deal with completed transactions. They may be requested for any area of taxation. They are issued at the request of the taxpayer. None of the above | 7. (TCO 6 ) Which, if any, of the following property is subject to | | |