Question
QUESTION 15 What is the appropriate tax treatment for the following expenditure of the the Vick family in 2018: Loss on the sale of the
QUESTION 15
What is the appropriate tax treatment for the following expenditure of the the Vick family in 2018:
Loss on the sale of the family car.
a. | Not deductible (as neither a for AGI deduction nor a from AGI deduction)
| |
b. | Deductible in 2018 as a from AGI, subject to the threshold of 10% of adjusted gross income. | |
c. | Deductible in 2018 as a from AGI and not subject to a threshold (other than the comparison to the standard deduction) | |
d. | Deductible in 2018 as a from AGI, subject to the limitation of 60% of adjusted gross income. | |
e. | Deductible in 2018 as a from AGI, subject to a collective $10,000 limit (with other similar items). |
QUESTION 16
What is the appropriate tax treatment for the following expenditure of the the Vick family in 2018:
The Vicks health insurance premiums for health plan coverage through Mrs. Vicks employers cafeteria plan. Premiums are withheld on Mrs. Vicks pay on a pre-tax basis.
a. | Not deductible (as neither a for AGI deduction nor a from AGI deduction)
| |
b. | Deductible in 2018 as a from AGI, subject to the threshold of 10% of adjusted gross income. | |
c. | Deductible in 2018 as a from AGI and not subject to a threshold (other than the comparison to the standard deduction) | |
d. | Deductible in 2018 as a from AGI, subject to the limitation of 60% of adjusted gross income. | |
e. | Deductible in 2018 as a from AGI, subject to a collective $10,000 limit (with other similar items). |
QUESTION 17
A scholarship recipient at State University may exclude from gross income the scholarship proceeds used to pay for:
a. | Only tuition and fees. | |
b. | Only tuition and fees, books, and supplies. | |
c. | Only tuition and fees, books, supplies, meals, and lodging. | |
d. | Only meals and lodging |
QUESTION 18
- Early in the year, Marlon was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year:
- Reimbursement of medical expenses Marlon paid by a medical insurance policy he purchased $10,000
- Damage settlement to replace his lost salary $15,000
What is the amount that Marlon must include in gross income for the current year?
a. | $25,000. | |
b. | $15,000. | |
c. | $10,000. | |
d. | $0. |
QUESTION 19
Which of the following, if any, correctly describes the earned income credit?
Would be available regardless of the amount of the taxpayers adjusted gross income. | ||
Would be available regardless of the age of the taxpayer(s). | ||
Requires a taxpayer to have a qualifying child to take advantage of the credit. | ||
Is a refundable credit. |
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