BCDE sheet the letter which indicates the corect response ease te than puu anwer, insert n the approerate pace m the have been rounded to the nearest $10 re s t an 1. Taxpayer (age 82 and blind) and spouse (age 23) erovide more than 1/ of the po of spouses' mother, who resides with them. Spouses mother s sn 69 and an tnd Assuming that Taxpayer and spouse file a joint Form 1040 and opt not to temise what standard deductilon amount will they claim? A S 27,200 B 24,000 26,600 29,200 None of the above C D E 2. Taxpayer (age 67) is married, but will file as married separate. Assume that Taxpayer has one child, who qualifies as Taxpayer's dependent. Assume also that Taxpayer's spouse has already filed Form 1040 (as married separate) claiming itemized deductions of $17,000 on the return. Assume finally that Taxpayer has AGI of $50,000 for the year, but has only $7,000 of qualifying itemized deductions and wishes to claim the standard deduction for the year. Compute Taxpayer's taxable income for the year. 38,000 32,700 36,700 43,000 A None of the above In return fora $5,000 payment, Creditor cancels Taxpayer's debt of $8,000. The cancellation is not a gift and Taxpayer is neither insolvent nor bankrupt. Which of the following 3. statements is correct? Creditor has $8,000 taxable income. Taxpayer has $3,000 of taxable income. Taxpayer has $5,000 of taxable income. Neither Creditor, nor Taxpayer has any taxable income from this transaction. None of the above (all of the statements are false) A D E