____ 15 Doug and Pauline, ages 67 and 66, are married and file a joint return for 2021 and they have no dependents. The following pertains to their return for the year:

A.G.I. $51,700

Itemized deductions 25,750

What is their taxable income for 2021?

a. $26,600

b. $23,900

c. $25,950

d. $24,350

e. $850

_____ 16. Which of the following is a correct observation related to the comparison between a deduction and a credit?

a. A deduction of $100 is more valuable than a credit of $100.

b. A deduction of $100 is less valuable to a 40 percent bracket taxpayer than is a $30 credit.

c. A deduction of $100 is less valuable to a 40 percent bracket taxpayer than it is to a 30 percent bracket taxpayer.

d. A credit of $100 is of equal value to a 40 percent bracket taxpayer or a 30 percent bracket taxpayer.

_____ 17. Which one of the following individuals likely would not have to make quarterly estimated payments?

a. A child with $50,000 trust income

b. An individual whose only income is salaries and wages

c. A selfemployed individual with net income of $25,000

4. An individual with a large stock and bond portfolio

_____ 18. Susan sold her Volvo for a $5,000 loss and her Toyota for a $500 gain. Susan is a factory worker and does not use her cars for business. As result of these transactions Susan will have:

a. A $4,500 capital loss, with only $3,000 deductible.

b. A $500 capital gain.

c. A $5,000 capital loss.

d. No taxable gain or deductible loss.