Please answer all the questions.

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Gleim 20-23 Employment Trans Prep Proc [1] During the examination of the ?nancial statements of Viscount Manufacturing Corporation, theCPAs noted that, although Viscount had 860 full-time and part-time employees, it had completely overlooked its responsibilities under the Federal Insurance Contributions Act (FICA). Underthese circumstances, which of the following is true? A. No liability under the act will attach ifthe employees voluntarily relinquish their rights underthe act in exchange for a cash equivalent paid directly to them. B. If the union that represents the employees has a vested pension plan covering the employeesthat is equal to or exceeds the benefits available under the act, Viscount has no liability. G. Since employers and employees owe FICA taxes and since the employer must withhold theemployees" tax from their wages as paid, Viscount must remit to the government a tax equal tothe amount assessed directly against the employer and the employee. D. The act does not apply to the part-time employees. [21 The Social Security Act provides for the imposition of taxes and the disbursement of benefits. Which of the following is a true statement regarding these taxes and disbursements in the currentyear? A. Only those who have contributed to Social Security are eligible for benefits. B. As between an employer and its employee, the tax rates are the same. 0. A deduction for federal income tax purposes is allowed the employee for Social Securitytaxes paid. D. Social Security benefits are fully inoludible in gross income fortederal income tax purposesunless they are disability benefits. [3] The federal Social Security Act A. Does not apply to self-employed persons. B. Excludes professionals such as accountants, lawyers, and doctors. C. Provides for a deduction for Social Security taxes paid by the employee that is availableagainst his or her federal income tax. D. Provides that bonuses and commissions paid as compensation are included as wages in thecalculation of employer-employee contributions. 4 Gilda Bach is a cash-basis , self -employed consultant For the year 2018 , she determined thather net income from self -employment was $80 000 . In reviewing her books , you determine thatthe following items were deducted in arriving at the net income of $80 000Salary drawn by Gilda Bach20.000Estimated federal income taxes paid600Malpractice insurance premiums4 000Cost of attending professional semina1000Based upon the above information , what should Gilda Bach report as her net earnings from selfemployment for 2018 ?A . $89 872B. $97 89C. $ 106 000D. $1 10.0005 / The federal Social Security ActA . Applies to self -employed personB . Excludes professionals such as accountants lawyers and doctorsC . Provides for a deduction for Social Security taxes paid by the employee against his or herfederal income taxD . Applies to professionals at their option6 During the current year , paid $40 a week to a 17 - year-old child ( who is not M's child ) tobaby - sit and perform domestic services in M's home after school and on weekends while M wasworking . M files a Form 1040 to report her federal income taxes . Which of the following applies ?A . Form 941 must be filedB . Form 943 must be filedC . Schedule H must be filedD . No form or returns need be filed71 In which of the following circumstances would a gift tax return be dueA . Check for $26000 to sonB . Transfer of stock valued at $30 000 to spouseC . Payment of a friend's $ 16 000 tuition expenseD . None of the answers are correct8 ) In the current year , Blum , who is single , gave an outright gift of $50 000 to a friend , Gouldwho needed the money to pay medical expenses In filing the current - year gift tax return , Blumwas entitled to a maximum exclusion ofA . $50 000B. $20, 000C. $15000D. 50 [9] During the current year, Blake transferred a corporate bond with a face amount and fairmarket value of $20,000 to a trust for the bene?t of her 1 6-year-old child. Annual interest on thisbond is $2,000, which is to be accumulated in the trust and distributed to the child on reachingthe age of 21 . The bond is then to be distributed to the donor or her successor-in-interest inliquidation of the trust. Present value of the total interest to be received by the child is $8,710.The amount of the gift that is excludable from taxable gifts is A. $20,000B. $5,0000. $8,710D. $0 [10] When Jim and Nina became engaged in April of this year, Jim gave Nina a ring that had afair market value of $50,000. Aftertheir wedding in July of the same year, Jim gave Nina $75,000in cash so that Nina could have her own bank account. Both Jim and Nina are U.S. citizens.What was the amount of Jim's current-year gifttax marital deduction? A. $0 B. $75,000C. $110,000D. $125,000 [11] The duties in the preparation of XYZ Corporation's income tax return were assigned andcompleted as follows: Joe - The employee who obtained the information, applied the tax law tothe information, and performed the necessary calculations. Sue - Joe's supervisor, who reviews Joe's work. In her review, Suereviews the information provided and the application of the taxlaws. Company - A computer tax service that takes the information provided by Sue, A verifies the mathematical accuracy, and prints the return form. Pat - A partner in the public accounting firm where Joe and Sue work. Pat reviews the return and the information provided and appliesthis information to XYZ's affairs. Pat also veri?es that thepartnership's policies have been followed and makes the finaldetermination. Who is the preparer of XYZ's return and is therefore required to sign it? A. Joe.B. Sue. C. Company A.0. Pat. [12] Joe is the trustee of a trust set up for his father. Under the Internal Revenue Code. when Joeprepares the annual trust tax return. Form 1041, he A. Must obtain the written permission of the beneficiary prior to signing as a tax return preparer.B. Is not considered a tax return preparer. C. May not sign the return unless he receives additional compensation for the tax return. D. Is considered a tax return preparer because his father is the grantor of the trust. [13] Which of the following statements is true regarding records required to be maintained byreturn preparers? A. Tax return preparers are required to maintain a complete copy of each return or claim forrefund they have filed for 3 years after the return period. B. Tax return preparers are required to maintain a list of the names, identi?cation numbers, andtax years of taxpayers for whom returns are prepared and to keep this list for 3 years afterthereturn period. C. Preparers have a choice at maintaining a complete copy of each return or claim for refundthey have ?led for 3 years after the return period or a list ofthe names, identification numbers,and tax years of taxpayers forwhom returns are prepared and to keep this list for 3 years afterthe return period. D. Preparers are required to maintain a complete copy of each return or claim for refund theyhave filed for 3 years after the return period and a list of the names, identification numbers, andtax years of taxpayers for whom returns are prepared and to keep this list for 3 years after thereturn period. [14]fv1r. K employs X. Y. and Z to prepare income tax returns fortaxpayers. X and Y collect theinfonnatjon from taxpayers and apply the tax laws. The return forms are completed by a computerservice. One day, when certain returns prepared by X and Y were ready for their signatures, Xwas out of town for 2 weeks and Y was out of the office for the day. Which one of the followingstatements is correct? A. 2 may sign the returns prepared by X and Y, if 2 reviews the information obtained by X and Yfrom the taxpayers and reviews the preparation of the returns. B. Z may sign the returns prepared by X, if 2 reviews the information obtained by X from thetaxpayers and reviews the preparation of the returns. C. Z may sign the returns prepared by Y if he reviews the intormation obtained by Y from thetaxpayers and reviews the preparation of the retums. D. X and Y must sign the returns that each one prepared. [15] Prior to becoming law, a proposed statute is called a bill. A revenue bill is one that concernstaxation (the raising of revenue). Where must a revenue bill originate? A. The House of Representatives. B. The President. C. The Joint Committee on Taxation.D. The Senate. 16 ) When or where are public hearings held on a revenue bill ?A . On the floor of the House and the SenateB . In the House Ways and Means Committee and the Senate Finance CommitteeC . In the Joint Conference CommitteeD . Upon first introduction to the House of Representatives .171 As revenue bills go through Congress , they are usually approved in different versions sinceamendments are frequently made . Which committee is responsible for reconciling the House andSenate versions ?A . Joint Conference CommitteeB . Joint Committee on TaxationC . House Ways and Means CommitteeD. Senate Finance Committee18 Ronald Raff filed his Year 1 individual income tax return on January 15 Year 2 . There wasno understatement of income on the return , and the return was properly signed and filed . Thestatute of limitations for Raff's Year i return expires ( assuming no relevant day is a SaturdaySunday , or holiday ) onA . January 15 , Year 5B . April 15 Year 5C . January 15 Year 8D. April 15 Year 819 Harold Thompson , a self employed individual , had income transactions for Year 1 ( dulyreported on his return filed in April Year 2 ) as followsGross receipts$400 000Less cost of goods soldand deductions(320 000)Net business income$ 80 000Capital gains36.000Gross income$1 16000In March Year 5 , Thompson discovers that he inadvertently omitted some income on his Yearreturn . He retains Mann , CPA , to determine his position under the statute of limitations , Mannshould advise Thompson that the 6 - year statute of limitations would apply to his Year 1 returnonly if he omitted from gross income an amount in excess ofA . $20 000B . $29, 000C. $ 100 000D. $109 000 [20] Richard Bakerfiled his Year 1 individual income tax return on April 15, Year 2. OnDecember 31, Year 2. he learned that 100 shares of stock that he owned had become worthlessin Year 1. Since he did not deduct this loss on his Year 1 return, Baker intends to file a claim forrefund. This refund claim must be ?led no laterthan April 15 of which year (assuming no relevantdays are Saturdays, Sundays, or holidays)? A. Year 3.B. Year 5.0. Year 8.D. Year 9. [21] If a taxpayer and the IRS still disagree after an appeals conference, the taxpayer can takehis or her case to A. United States Tax Court. B. United States Court of Federal Claims.C. United States District Court. D. All of the answers are correct. [22] If an individual paid income taxes in the current year through withholding but did not ?le acurrent-year return because his income was insufficient to require the filing of a return, thedeadline forfiling a refund claim is A. 2 years from the date the tax was paid.B. 2 years from the date a return would have been due.C. 3 years from the date the tax was paid.D. 3 years from the date a return would have been due