BUSINESS MANAGEMENT INDIVIDUAL TAX
TEST EXAM 1 COMPLETE 2026/2027 STUDY
QUESTIONS WITH CORRECT ANSWERS
GUARANTEED PASS | 100% TOP RATED
, BUSINESS MANAGEMENT INDIVIDUAL TAX TEST EXAM 1
COMPLETE 2026/2027 STUDY QUESTIONS WITH CORRECT
ANSWERS GUARANTEED PASS | 100% TOP RATED
Tonya is a cash basis taxpayer. In 2017, she paid state income taxes of $8,000. In early 2018, she
filed her 2017 state income tax return and received a $900 refund. - Answer>>> If Tonya
itemized her deductions in 2017 on her Federal income tax return and her itemized deductions
exceeded the standard deduction by more than $900, she must recognize $900 income in 2018
under the tax benefit rule.
Paul, a calendar year married taxpayer, files a joint return for 2017. Information for 2017
includes the following:
AGI $175,000
State income taxes 13,500
State sales tax 3,000
Real estate taxes 18,900
Gambling losses (gambling gains were $12,000) 6,800
Paul's allowable itemized deductions for 2017 are: - Answer>>> $39,200.
Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8%
note for $100,000. The note was to be paid over a five-year period. When the balance on the note
was $80,000, Jewel began having financial difficulties. To accelerate her cash inflows, Jewel
agreed to accept $60,000 cash from Harold in final payment of the note principal. - Answer>>>
Harold is not required to recognize gross income, but must reduce his cost basis in the land to
$130,000.
The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells
memberships that entitle the member to use the facilities at any time. A one-year membership
TEST EXAM 1 COMPLETE 2026/2027 STUDY
QUESTIONS WITH CORRECT ANSWERS
GUARANTEED PASS | 100% TOP RATED
, BUSINESS MANAGEMENT INDIVIDUAL TAX TEST EXAM 1
COMPLETE 2026/2027 STUDY QUESTIONS WITH CORRECT
ANSWERS GUARANTEED PASS | 100% TOP RATED
Tonya is a cash basis taxpayer. In 2017, she paid state income taxes of $8,000. In early 2018, she
filed her 2017 state income tax return and received a $900 refund. - Answer>>> If Tonya
itemized her deductions in 2017 on her Federal income tax return and her itemized deductions
exceeded the standard deduction by more than $900, she must recognize $900 income in 2018
under the tax benefit rule.
Paul, a calendar year married taxpayer, files a joint return for 2017. Information for 2017
includes the following:
AGI $175,000
State income taxes 13,500
State sales tax 3,000
Real estate taxes 18,900
Gambling losses (gambling gains were $12,000) 6,800
Paul's allowable itemized deductions for 2017 are: - Answer>>> $39,200.
Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8%
note for $100,000. The note was to be paid over a five-year period. When the balance on the note
was $80,000, Jewel began having financial difficulties. To accelerate her cash inflows, Jewel
agreed to accept $60,000 cash from Harold in final payment of the note principal. - Answer>>>
Harold is not required to recognize gross income, but must reduce his cost basis in the land to
$130,000.
The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells
memberships that entitle the member to use the facilities at any time. A one-year membership
