TAX2601 Assignment 6 Semester 1 2024

Exchange Traded Funds ("ETF") provide all the following investment features except: Dividends Diversification Net asset value You Answered Liquidity - Correct Answer Net asset value According to the current tax code, you can give the following without having to pay a gift tax $15,000 a year to as many people as you want the above Pay hospital bills for a student directly to the hospital Pay student tuition directly to the institution - Correct Answer All the above The "bid" of a stock is The lowest price a buyer is willing to sell The highest price a buyer is willing to pay The lowest price a seller is willing to sell The "last" price the stock traded - Correct Answer The highest price a buyer is willing to pay Stock options May be in the money May be given to employees for free May be out of the money All the above - Correct Answer All the above Which of the following is not an eligible itemized deduction? Taxes you paid Medical and Dental expenses Number of dependents Gifts to charity - Correct Answer Number of dependents Stock options May be subject to capital gains or losses after exercised May be worthless All the above May be subject to payroll taxes when exercised - Correct Answer All the above The "ask" of a stock is The "last" price the stock traded The lowest price a buyer is willing to sell The lowest price a seller is willing to sell The highest price a buyer is willing to pay - Correct Answer The lowest price a seller is willing to sell Losses in excess of gains in any one year can be used to reduce taxable income up to $3,000 $2,000 $4,000 $1,000 - Correct Answer $3,000 Which of the following statements about partnerships is false? Partnerships issue a K-1 to each partner When a partner dies, the partnership terminates Partnerships do not pay federal taxes Limited partners have limited liability - Correct Answer When a partner dies, the partnership terminates The quote on ABC stock is "bid" $25.75 and "ask" $26.05. If you enter a market order to buy, the price you would pay will be: $25.90 $26.05 $25.50 $25.75 - Correct Answer $26.05 In a partnership, each partner and the IRS receives a K-1 1099 W-2 None of the above - Correct Answer K-1 When investing in stocks, I do not recommend: Stop orders Selling short All the above Day trading - Correct Answer All the above A sole proprietor reports business profits or losses to the IRS by filing a Sole proprietor business tax form K-1 1099 Form Form 1040 Schedule C - Correct Answ