15) 15) Married couples will normally file jointly. Identify a situation where a married couple may prefer to file separately. A) A couple is separated and contemplating divorce. B) The spouse with lower income has substantial medical expenses. One spouse can be held responsible for the entire tax liability. D) All of the above 16) 16) Ryan and Edith file a joint return showing $420,000 of AGI. They have three dependent children ages 7,9, and 13. What is the amount of their child tax credit? A) $2,000 B) $6,000 C) $5,000 D) $0 17) 17) Elise, age 20, is a full-time college student with earned income from wages of $4,400 and interest income of $500. Elisc's parents provide more than half of her support. Elise's 2021 taxable income is A) $500 B) $0. C) $150. D) $3,850. 18) 18) All of the following items are included in gross income except A) pension benefits received. B) rent income. ) child support payments received. D) interest earned on a bank account. 19) 19) All of the following items are deductions for adjusted gross income except A) one-half of self-employment taxes on year's earnings. B) interest on student loans. qualifying contributions to individual retirement accounts. D) unreimbursed employee business expenses. 20) 20) In 2021, Brett and Lashana (both 50 years old) file a joint tax return claiming as a dependent their son who is blind. Their standard deduction is A) $26,800. B) $14,250. C) $25,100. D) $26,450 21) 21) Tom and Alice were married on December 31 of last year. What is their filing status for last year? A) They file as single for 364 days and marricd filing jointly for one day. B) They file as single .) They file as single for half the year and married filing jointly for the other half. D) They file as married filing jointly or married filing separately. 22) 22) Frasier and Marcella, husband and wife, file separate returns. Frasier and Marcella live in a community properly state that considers separate property income to be separate Frasier's salary is $42.000 and Marcella's salary is $46,000. Marcella receives dividend income of $4,000 from stock inherited from her parents. Frasier receives interest income of $1,400 from bonds purchased with his salary after marriage. Frasier and Marcella receive $3,200 dividend income froin stock they purchased jointly. Marcella's income would be A) $50,000 B) $51,100. C) $50,100. D) $51,600. 23) 23) Mark purchased 2,000 shares of Darcy Corporation for $13,200. This year, Darcy declared a 10% nontaxable stock dividend, and Mark received 200 shares. After the dividend Mark's per share basis will be A) $7.26. B) $6.00 C) $6.60. D) $6.57. 3
