Anne, who is single, has taxable income for the current year of $38,000 while total economic income is $43,000 resulting in a total tax of $5,625. Anne's average tax rate and effective tax rate are, respectively,

14.80% and 13.08%. 13.08% and 14.80%. 11.58% and 13.08%. 14.80% and 13.65%.

Question 2.2. All of the following items are deductions for (not from) adjusted gross income except

moving expenses. unreimbursed employee business expenses. qualifying contributions to individual retirement accounts. one-half of self-employment taxes paid.

Question 3.3. In 2013 the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is (Points : 4

$12,200. $13,400 $14,600 $15,200.

Question 4.4. AB Partnership earns $500,000 in the current year. Partners A and B are equal partners who do not receive any distributions during the year. How much income does partner A report from the partnership? (Points : 4)

$0 $250,000 $500,000 $750,000

Question 5.5. Which of the following is not an advantage of a limited liability company (LLC)?

Limited liability for all members of a LLC Ability to choose between taxation as a partnership or corporation Default tax treatment as a corporation, unless otherwise elected All of the above are advantages of an LLC.

Question 6.6. Charlie makes the following gifts in the current year: $40,000 to his spouse, $30,000 to his church, $18,000 to his nephew, and $25,000 to a friend. Assuming Charlie does not elect gift splitting with his wife, his taxable gifts in the current year will be

$13,000. $15,000. $25,000. $41,000

Question 7.7. Which of the following taxes is progressive?

Sales tax Excise tax Property tax Income tax

Question 8.8. All of the following items are deductions for (not from) adjusted gross income except

moving expenses. unreimbursed employee business expenses. qualifying contributions to individual retirement accounts. one-half of self-employment taxes paid.

Question 9.9. All of the following statements are true except

the net income earned by a sole proprietorship is reported on the owner's individual income tax return. the net income of an S corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the S corporation to individual shareholders are also taxed. the net income of C corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the C corporation to individual shareholders are also taxed. LLCs are generally taxed as partnerships.

Question 10.10. In an S corporation, shareholders

are taxed on their proportionate share of earnings. are taxed only on dividends. may allocate income among themselves in order to consider special contributions. are only taxed on salaries.

Question 11.11. Which of the following credits is considered a refundable credit?

Child and dependent care credit Earned income credit Adoption expense credit Lifetime learning credit

Question 12.12. In order to shift the taxation of dividend income from a parent to a child,

the parent must direct the corporation to pay the dividend to the child. the parent must transfer ownership of the stock to the child. the parent can deposit the dividend in the child's bank account. all of the above will result in shifting the taxation to the child.

Question 13.13. If an individual with a marginal tax rate of 15% has a long-term capital gain, it is taxed at

0%. 10%. 15%. 20%.

Question 14.14. Which of the following serves as the highest authority for tax research, planning, and compliance activities?

Internal Revenue Code Income Tax Regulations Revenue Rulings Revenue Procedures

Question 15.15. The unified transfer tax system

imposes a single tax upon transfers of property during an individual's lifetime only. imposes a single tax upon transfers of property during an individual's life and at death. imposes a single tax upon transfers of property only at an individual's death. imposes a single tax upon transfers of property whenever it deems it necessary.

Question 16.16. Lila and Ted are married and have AGI of $327,000. They had their first children this year, twins. Lila and Ted will be allowed a deduction for personal and dependency exemptions of

$7,800. $15,600. $8,736. $12,168.

Question 17.17. All of the following are executive (administrative) sources of tax law except

Internal Revenue Code. Income Tax Regulations. Revenue Rulings. Revenue Procedures.

Question 18.18. Married couples will normally file jointly. Identify a situation where a married couple may prefer to file separately.

The spouse with lower income has substantial medical expenses. A couple is separated and contemplating divorce. One spouse can be held responsible for the entire tax liability. All of the above.

Question 19.19. When property is transferred, the gift tax is based on

replacement cost of the transferred property. fair market value on the date of transfer. the transferor's original cost of the transferred property. the transferor's depreciated cost of the transferred property.

Question 20.20. Rob is a taxpayer in the top tax bracket, with over a million in taxable income. He plans to sell stock held long-term for a $100,000 gain. This sale will result in an increase to his tax liability of

$15,000. $20,000. $39,600. $23,800.