Citators: a. are primary authorities ob. are not necessary for effective tax research c. refer to the case being evaluated as the citing case. d. determine the history of a judicial decision QUESTION 36 Norton's spouse died in 2020. Norton has one child, age 7, living at home, Norton provides all the support for the child. The child lives with Norton during 2020 2021 2022 and 2023. Norton's most advantageous hiling status is Od married in jointly in 2020 and single in 2021 2022 and 2023 b. head of household for all four years. chead of household in 2020 and surviving spouse in 2021 2022 and 2023 d. married, niling jointly in 2020, surviving spouse in 2021 and 2022, and head of household in 2023. QUESTION 37 Bruce, 65, supports his mother who lives with him. What is the maximum amount of the 2020 standard deduction that Bruce qualities for? O 512,400 0 $14.050 $18.650 d. 519.950 520,300 Ariel has two children, Christopher and Pat. Christopher is 25 years old and Pat is 22. Christopher is a full time student at Southern College has a full tuition scholarship, and lives at school during the year. Pat works full-time and lives at home. Which test will prevent both Pat and Christopher from being qualifying children of Ariel? O a. The age test b. The gross income test c. The principal residence test d. The non support test The relationship test QUESTION 39 Partha owns a qualified annuity that cost $2,000. Under the contract, when he reaches age 65, he will receive 5500 per month until he dies. Partha turns 65 on June 1, 2026 and receives his first payment on June 3, 2020 How much gross income will Partha report from each annuity payment he receives in 20207 Assume under the appropriate is annuity table Partha is expected to receive 260 payments before he dies. a 3500 b. 5200 3300 Odero O None of the above Jackson pays $75 annually for a safety inspection of his automobile that is required by the state. Is the payment considered a tax? a Yes O No QUESTION 41 Jennifer is in a 22% marginal tax rate. Her tax liability (before tax credits) for the year is 55.200. Jennifer is entitled to a 52.000 child tax credit. The credit will reduce her tax liability by O a $2.000 Ob. $440 (2.000 x 28%) OC 51,560 Od. None of the above QUESTION 42 On January 1, Laura loans her employee $150.000 at zero interest. He uses the money to buy a home. Assume the market rate of interest is 89. Which of the following statements is/are true? a. Laura must recognize interest income of $12,000. O b. Laura's employee must recognize $12.000 of imputed compensation income. O c. Botha and b are correct od. Neither a orb are correct. Celeste currently works 40 hours per week. When Dana hears that Congress has increased federal income taxes from 25 percent to 28 percent for her level of income, she decides to increase her workload to 45 hours per week. Celestes response is an example of: o the income effect. Ob the substitution effect vertical equity. od horontal equity QUESTION 44 A property tax 1. is levied on the value of property II. is referred to as ad valorem tax. on personal property is more common than a tax on real property IV is based on messed value rather than actual transactions a. Only statement is correct. b. Statements and I are correct. Statements I and IV are correct. d. Statements, and are correct Melanie works at the SYZ Company as a financial planner. Her salary for 2020 is $400,000. Melanie's share of her social security tax is $30.600 OaTrue O. False QUESTION 46 Marcus gifted each of his children $1,000,000. The children all immediately spent all of the money. After the transfer he made an appointment to meet with a tax professional in order to determine whether he would have to file any of tax returns. He was also interested in learning if the gifts would cause him to have any gift tax liability. Marcus was not pleased that his children spent all the money. At this point, Marcus's transaction is an example of a. an open transaction ob. a closed transaction QUESTION 47 if Lindsey, a calendar year taxpayer requests an extension to file her tax return, the latest she could pay her tax due without penalty is: 3. April 15th Ob. October 15th August 15th od November 15th Jake earns $100,000 and pays $20,000 in taxes. John earns $100,000 and pays $10,000 in taxes. Which concept that best applies to these taxpayers? a. Horizontal equity b. Vertical equity. c. Both concepts apply since Jake and John are in the same tax position and pay different amounts of tax, QUESTION 49 Bob's employer offers a nondiscriminatory cafeteria plan. Each employee may select $4,000 of benefits from a menu of benefits. Bob chooses to receive health insurance (3.000), dental insurance (5600), and cash (3400). Based on these facts, Bob will not have to recognize any income related to the benefits received. O a True b. False QUESTION SO Lena, a single individual, purchased a personal residence on January 19, 2019. On February 20, 2020, Lena sells the residence and realizes a $300,000 gain. Lena lived in the residence the entire time she owned it. How much gain will Lena have to recognize on the sale of her personal residence O a Zero 550.000 O 3300,000 O d. None of the above