Question
QUESTION 22 How much gross income does the taxpayer recognize from the following items of broadly defined income? Received cash gift of $9,000 from parents.
QUESTION 22
How much gross income does the taxpayer recognize from the following items of broadly defined income?
- Received cash gift of $9,000 from parents.
- Won $16,000 in a slot machine in Las Vegas.
- Taxpayer's vacation home on Lake Tahoe increased in value by $15,000.
a. | a. $16,000 | |
b. | b. $24,000 | |
c. | c. $25,000 | |
d. | d. $29,000 |
QUESTION 23
Which of the following items is a capital asset in the hands of the taxpayer?
a. Taxpayer owns 100 shares of Apple stock. | ||
b. Taxpayer owns a used car lot. The business owns a 1962 Cadillac that is for sale on the lot. | ||
c. Taxpayer is a self-employed CPA and owns a notebook computer that he carries to his clients for work purposes. | ||
d. Taxpayer, a self-employed attorney, uses the cash basis method of accounting for tax purposes. He owns outstanding accounts receivable in the amount of $10,000. |
QUESTION 24
When a taxpayer receives a recovery of an item of income after the item was previously deducted, the recovery is recognized as income to the extent of the tax benefit received from the previous deduction.
a. | This statement is true. | |
b. | This statement is false. |
QUESTION 25
Noncorporate taxpayers who receive qualified dividends may receive a beneficial (preferential) tax rate at a rate lower than their marginal rate.
a. | This statement is true. | |
b. | This statement is false. |
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