. TRUE/ FALSE?

1. Rom pays the medical expenses of his son, Hudy. Hudy would qualify as Roms dependent except that he earns $11,000 during the year. Rom may claim Hudy medical expenses.

_ 2. For purposes of computing the deduction for qualified residence interest, a qualified residence includes only the taxpayers principal residence.

__ 3. Hal paid $180 for Cub Scout candy and $70 for Girl Scout cookies. Sal may claim an $250 charitable contribution deduction.

_ 4. In 2016, Aly drove 700 miles to volunteer in a project sponsored by a qualified charitable organization in Ohio. Aly may take a charitable contribution deduction of $204.

__ 5. James participates 106 hours in an activity, while an employee participates 7 hours. Tim has materially participated in the activity.

____ 6. Wall owns a building that produces a $24,000 loss during the year. His AGI before considering the rental loss is $84,000. Wall must be an material participant with respect to the rental activity in order to deduct the $24,000 loss under the real estate rental exception.

____ 7. In deciding to enact the alternative minimum tax, Congress was concerned about the inequity that resulted when taxpayers with substantial economic incomes could avoid paying regular income tax.

____ 8. The tax benefit received from a tax credit is affected by the tax rate of the taxpayer.

____ 9. Nonrefundable credits are those that reduce the taxpayers tax liability but are not paid when the amount of the credit (or credits) exceeds the taxpayers tax liability.

____ 10. Qualified rehabilitation expenditures include the cost of acquiring the building, but not the cost of acquiring the land.

____ 11. Employers are encouraged by the work opportunity tax credit to hire individuals who have been long-term recipients of family assistance welfare benefits