TEST BANK: INCOME
hf
Test Bank For Income Tax Fundamentals 38th edition gerald e
whittenburg martha altus buller All Chapters Covered With
Questions And Guided Complete Solutions.
DAMENTA
LS,
,Chapter1:TheIndividualIncomeTaxReturn c c c c c c
1. A corporation is a reporting entity but not a tax-paying entity. True
c c c c c c c c c c c
False
2. Partnership capital gains and losses are allocated separately to each of the partners. True
c c c c c c c c c c c c c
False
3. Married taxpayers may double their standard deduction amount by filing separate return
c c c c c c c c c c c
s.
True False
4. An item is not included in gross income unless the tax law specifies that the item is subject t
c c c c c c c c c c c c c c c c c c
o taxation.
c
True False
5. For taxpayers who do not itemize deductions, the standard deduction amount is subtra
c c c c c c c c c c c c
cted from the taxpayer's adjusted gross income.
c c c c c c
True False
6. A taxpayer with self-employment income of $600 must file a tax return. True
c c c c c c c c c c c c
False
7. A dependent child with earned income in excess of the available standard deduction amoun
c c c c c c c c c c c c c
t must file a tax return.
c c c c c
True False
8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750 must file
c c c c c c c c c c c c c c c c c c c
a tax return.
c c
True False
,9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she fil
c c c c c c c c c c c c c c c c c c c c
es a tax return.
c c c
True False
10. Taxpayers with self-employment income of $400 or more must file a tax return. True
c c c c c c c c c c c c c
False
11. If your spouse dies during the tax year and you do not remarry, you must file as single for
c c c c c c c c c c c c c c c c c c c
the year of death.
c c c
True False
12. Taxpayers who do not qualify for married, head of household, or qualifying widow or widow
c c c c c c c c c c c c c c
er filing status must file as single.
c c c c c c
True False
13. If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal
c c c c c c c c c c c c c c c c c
place of residence of a nephew, who is not her dependent, she may use the head of household fili
c c c c c c c c c c c c c c c c c c c
ng status.
c
True False
14. The maximum official individual income tax rate for 2012 is 35 percent. True
c c c c c c c c c c c c
False
15. All taxpayers may use the tax rate schedule to determine their tax liability. True
c c c c c c c c c c c c c
False
16. The head of household tax rates are higher than the rates for a single taxpayer. True
c c c c c c c c c c c c c c c
False
17. Most states are community property states. Tr c c c c c c
ue False
, 18. If taxpayers are married and living together at the end of the year, they must file a joint tax
c c c c c c c c c c c c c c c c c c c
return.
True False
19. A taxpayer who maintains a household with an unmarried child may qualify to file as head of
c c c c c c c c c c c c c c c c c
household even if the child is not the taxpayer's dependent.
c c c c c c c c c
True False
20. A married person with a dependent child may choose to file as head of household if it reduces
c c c c c c c c c c c c c c c c c c
his or her tax liability.
c c c c
True False
21. A taxpayer who is living alone and is legally separated from his or her spouse under a separate
c c c c c c c c c c c c c c c c c c
maintenance decree at year-end should file as single. c c c c c c c
True False
22. An individual, age 22, enrolled on a full-
c c c c c c c
time basis at a trade school, is considered a student for purposes of determining whether a dep
c c c c c c c c c c c c c c c c
endency exemption is permitted. True False
c c c c
23. A dependency exemption may be claimed by the supporting taxpayer in the year of death of
c c c c c c c c c c c c c c c
a dependent.
c c
True False
24. For 2012, personal and dependency exemptions are $3,800 each. True
c c c c c c c c c
False
25. Scholarships received by a student may be excluded for purposes of the support test for dete
c c c c c c c c c c c c c c c
rmining the availability of the dependency exemption.
c c c c c c
True False
hf
Test Bank For Income Tax Fundamentals 38th edition gerald e
whittenburg martha altus buller All Chapters Covered With
Questions And Guided Complete Solutions.
DAMENTA
LS,
,Chapter1:TheIndividualIncomeTaxReturn c c c c c c
1. A corporation is a reporting entity but not a tax-paying entity. True
c c c c c c c c c c c
False
2. Partnership capital gains and losses are allocated separately to each of the partners. True
c c c c c c c c c c c c c
False
3. Married taxpayers may double their standard deduction amount by filing separate return
c c c c c c c c c c c
s.
True False
4. An item is not included in gross income unless the tax law specifies that the item is subject t
c c c c c c c c c c c c c c c c c c
o taxation.
c
True False
5. For taxpayers who do not itemize deductions, the standard deduction amount is subtra
c c c c c c c c c c c c
cted from the taxpayer's adjusted gross income.
c c c c c c
True False
6. A taxpayer with self-employment income of $600 must file a tax return. True
c c c c c c c c c c c c
False
7. A dependent child with earned income in excess of the available standard deduction amoun
c c c c c c c c c c c c c
t must file a tax return.
c c c c c
True False
8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750 must file
c c c c c c c c c c c c c c c c c c c
a tax return.
c c
True False
,9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she fil
c c c c c c c c c c c c c c c c c c c c
es a tax return.
c c c
True False
10. Taxpayers with self-employment income of $400 or more must file a tax return. True
c c c c c c c c c c c c c
False
11. If your spouse dies during the tax year and you do not remarry, you must file as single for
c c c c c c c c c c c c c c c c c c c
the year of death.
c c c
True False
12. Taxpayers who do not qualify for married, head of household, or qualifying widow or widow
c c c c c c c c c c c c c c
er filing status must file as single.
c c c c c c
True False
13. If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal
c c c c c c c c c c c c c c c c c
place of residence of a nephew, who is not her dependent, she may use the head of household fili
c c c c c c c c c c c c c c c c c c c
ng status.
c
True False
14. The maximum official individual income tax rate for 2012 is 35 percent. True
c c c c c c c c c c c c
False
15. All taxpayers may use the tax rate schedule to determine their tax liability. True
c c c c c c c c c c c c c
False
16. The head of household tax rates are higher than the rates for a single taxpayer. True
c c c c c c c c c c c c c c c
False
17. Most states are community property states. Tr c c c c c c
ue False
, 18. If taxpayers are married and living together at the end of the year, they must file a joint tax
c c c c c c c c c c c c c c c c c c c
return.
True False
19. A taxpayer who maintains a household with an unmarried child may qualify to file as head of
c c c c c c c c c c c c c c c c c
household even if the child is not the taxpayer's dependent.
c c c c c c c c c
True False
20. A married person with a dependent child may choose to file as head of household if it reduces
c c c c c c c c c c c c c c c c c c
his or her tax liability.
c c c c
True False
21. A taxpayer who is living alone and is legally separated from his or her spouse under a separate
c c c c c c c c c c c c c c c c c c
maintenance decree at year-end should file as single. c c c c c c c
True False
22. An individual, age 22, enrolled on a full-
c c c c c c c
time basis at a trade school, is considered a student for purposes of determining whether a dep
c c c c c c c c c c c c c c c c
endency exemption is permitted. True False
c c c c
23. A dependency exemption may be claimed by the supporting taxpayer in the year of death of
c c c c c c c c c c c c c c c
a dependent.
c c
True False
24. For 2012, personal and dependency exemptions are $3,800 each. True
c c c c c c c c c
False
25. Scholarships received by a student may be excluded for purposes of the support test for dete
c c c c c c c c c c c c c c c
rmining the availability of the dependency exemption.
c c c c c c
True False
