QUESTION 5 Sam and Melody are owners of a full time business, where they sell auto parts in their small town in rural Nebraska They have been successful for many years and have four very loyal, hard working employees Please review the following expenses and explain how they should be handled for tax purposes Their payment for health insurance for their employees Ordinary and Necessary Expense on Schedule E Ordinary and Necessary Expense on Schedule C Deduction above the line on the front page of their return Deduction below the line on the back page of their return on Schedule A 5 points QUESTION 6 Sam and Melody are owners of a full time business, where they sell auto parts in their small town in rural Nebraska They have been successful for many years and have four very loyal, hard working employees Please review the following expenses and explain how they should be handled for tax purposes They pay for the social taxes for their employees (remember, employers are responsible for of the social taxes for employees) a Deduction below the line on the back page of their return on Schedule A b Ordinary and Necessary Expense on Schedule E c Deduction above the line on the front page of their return d Ordinary and Necessary Expense on Schedule C 5 points QUESTION 7 Sam and Melody are owners of a full time business, where they sell auto parts in their small town in rural Nebraska They have been successful for many years and have four very loyal, hard working employees Please review the following expenses and explain how they should be handled for tax purposes They pay for the social taxes for themselves a Deduction below the line on the back page of their return on Schedule A b Ordinary and Necessary Expense on Schedule E c Ordinary and Necessary Expense on Schedule C d Deduction above the line on the front page of their return 5 points QUESTION 8 Todd and Mary have been living together for about six years Todd has one child from a previous marriage (he is widowed) and has been working in accounting and makes $120,000 per year Mary has been working as a manager for about three years and makes about $80,000 Todd and Mary have joint accounts, but the home is titled in Mary's name They have remained unmarried, but both share responsibility for raising Todds son, who didnt know his mother and thinks of Mary as his mother Which status should Mary claim (choose the best, considering Todd's best filing status) a Common Law Married b Married, filing separately c Head of Household d Single 5 points QUESTION 9 Todd and Mary have been living together for about six years Todd has one child from a previous marriage (he is widowed) and has been working in accounting and makes $120,000 per year Mary has been working as a manager for about three years and makes about $80,000 Todd and Mary have joint accounts, but the home is titled in Mary's name They have remained unmarried, but both share responsibility for raising Todds son, who didnt know his mother and thinks of Mary as his mother Which status should Todd claim (choose the best, considering Mary's best filing status) a Qualifying Widower b Common Law Married c Head of Household d Single 5 points QUESTION 10 Dorthey is a retired widow and former UK citizen who lives on the fruits of her and her deceased husbands (James) labor Her husband died 4 years ago, after they were married for 40 years, they had no prior spouses before their marriage She receives income from the following sources Survivors benefit from James pension $25,000 year (Ignore any contributions made to the pension) Survivors benefit from James social security $15,000 year Traditional IRA distribution $30,000 year Interest from City of Roanoke bonds $10,000 Interest from City of Bath Bonds $10,000, of which $2000 is withheld from to pay taxes in the UK What is the best use of the taxes paid in the UK for the interest on the bonds a Foreign Tax Deduction on Schedule A b Foreign Tax Deduction on Schedule E c Foreign Tax Credit on Form 1116 d None, there was no taxes paid on the bonds in the US (they are taxable only in the UK)

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QUESTION 5 Sam and Melody are owners of a full-time business, where they sell auto parts in their small town in rural Nebraska. They have

QUESTION 5

Sam and Melody are owners of a full-time business, where they sell auto parts in their small town in rural Nebraska. They have been successful for many years and have four very loyal, hard-working employees. Please review the following expenses and explain how they should be handled for tax purposes.

Their payment for health insurance for their employees:

		Ordinary and Necessary Expense on Schedule E
		Ordinary and Necessary Expense on Schedule C
		Deduction above the line on the front page of their return
		Deduction below the line on the back page of their return on Schedule A

5 points

QUESTION 6

They pay for the social taxes for their employees (remember, employers are responsible for of the social taxes for employees):

	a.	Deduction below the line on the back page of their return on Schedule A
	b.	Ordinary and Necessary Expense on Schedule E
	c.	Deduction above the line on the front page of their return
	d.	Ordinary and Necessary Expense on Schedule C

5 points

QUESTION 7

They pay for the social taxes for themselves:

	a.	Deduction below the line on the back page of their return on Schedule A
	b.	Ordinary and Necessary Expense on Schedule E
	c.	Ordinary and Necessary Expense on Schedule C
	d.	Deduction above the line on the front page of their return

5 points

QUESTION 8

Todd and Mary have been living together for about six years. Todd has one child from a previous marriage (he is widowed) and has been working in accounting and makes $120,000 per year. Mary has been working as a manager for about three years and makes about $80,000. Todd and Mary have joint accounts, but the home is titled in Mary's name. They have remained unmarried, but both share responsibility for raising Todds son, who didnt know his mother and thinks of Mary as his mother.

Which status should Mary claim (choose the best, considering Todd's best filing status)?

a.
Common Law Married

b.
Married, filing separately

c.
Head of Household

d.
Single

5 points

QUESTION 9

Todd and Mary have been living together for about six years. Todd has one child from a previous marriage (he is widowed) and has been working in accounting and makes $120,000 per year. Mary has been working as a manager for about three years and makes about $80,000. Todd and Mary have joint accounts, but the home is titled in Mary's name. They have remained unmarried, but both share responsibility for raising Todds son, who didnt know his mother and thinks of Mary as his mother.

Which status should Todd claim (choose the best, considering Mary's best filing status)?

a.
Qualifying Widower

b.
Common Law Married

c.
Head of Household

d.
Single

5 points

QUESTION 10

Dorthey is a retired widow and former UK citizen who lives on the fruits of her and her deceased husbands (James) labor. Her husband died 4 years ago, after they were married for 40 years, they had no prior spouses before their marriage. She receives income from the following sources:

Survivors benefit from James pension: $25,000/year (Ignore any contributions made to the pension)
Survivors benefit from James social security: $15,000/year
Traditional IRA distribution: $30,000/year
Interest from City of Roanoke bonds: $10,000
Interest from City of Bath Bonds: $10,000, of which $2000 is withheld from to pay taxes in the UK.

What is the best use of the taxes paid in the UK for the interest on the bonds?

	a.	Foreign Tax Deduction on Schedule A
	b.	Foreign Tax Deduction on Schedule E
	c.	Foreign Tax Credit on Form 1116
	d.	None, there was no taxes paid on the bonds in the US (they are taxable only in the UK)