26. Gross income can be in the form of a. Cash c. Services b. Goods d. All of the above 27. John is a traveling salesman who lives alone in Atlanta Having divorced his wife just over a year ago, he pays $500 a month to his ex-wife for alimony. He also pays the nursing home cost for his only surviving relative, his elderly father, who has no income. What is John's filing status? a. Single b. Head of Household c. Surviving Spouse d. Married Filing Separately 28. David's parents are divorced. From September to May, David lives with his father in Washington while attending high school. During the current year, David's support for this period totaled $8,500. During the summer, David lived with his mother. His total support for this three- month period, totaling $9,700, was provided by his mother. The exemption for David should be a. Given to his father who had custody for majority of the year b. Given to his mother who provided more then one-half of the total support c. Pro-rated based on the ratio of actual support provided d. Pro-rated based on the ratio of months of custody 29. Adjusted gross income is used to place limits on a. Self-employment tax c. Itemized deductions b. Gross income d. depreciation expense 0156 30. Assuming a 15% tax rate, tax-free income of $5,000 would be equal to taxable income of 6000 a. $5,000 $5,882 b. $1,500 d. $750 85 = 5,88 31. When a tax-exempt bond yields 7%, a taxable investment yield for a taxpayer in the 28% tax bracket must yield what percent to provide an equivalent after-tax yield? a. 8.02% 134,07 4.10. 9.00% b. 8.42% a 9.72% -72