TEST BANK: INCOME
TAX
FUNDAMENTALS,
38TH EDITION,
GERALD E.
WHITTENBURG,
MARTHA ALTUS-
BULLER, STEVEN
GILL
,Chapterh1:hThehIndividualhIncomehTaxhReturn
1. Ahcorporationhishahreportinghentityhbuthnothahtax-
payinghentity.hTrue False
2. Partnershiph capitalhgainsh andhlossesh arehallocatedh separatelyhtoh eachh ofh theh partner
s.hTrue False
3. Marriedh taxpayersh mayh doubleh theirh standardh deductionh amounth byh filingh separat
ehreturns.
True False
4. Anhitemhishnothincludedhinh grosshincomehunlessh thehtaxh lawh specifiesh thath thehitem
hishsubjecthtohtaxation.
True False
5. Forh taxpayersh whoh doh noth itemizeh deductions,h theh standardh deductionh amounth
ishsubtractedhfromhthehtaxpayer'shadjustedhgrosshincome.
True False
6. Ahtaxpayerhwithhself-
employmenthincomehofh$600hmusthfilehahtaxhreturn.hTrue False
7. Ah dependenth childh withhearnedh incomeh inh excessh ofhtheh availableh standardh deducti
onhamounthmusthfilehahtaxhreturn.
True False
8. Ahsingleh taxpayer,h whoh ish noth blindh andh whoh ish underh ageh 65,h withh incomeh ofh $8,7
50hmusthfilehahtaxhreturn.
True False
,9. Ifhahtaxpayerhishduehahrefund,hithwillhbehmailedhtohthehtaxpayerhregardlesshofhwhetherh
hehorhshehfileshahtaxhreturn.
True False
10. Taxpayershwithhself-
employmenthincomehofh$400horhmorehmusthfilehahtaxhreturn.hTrue False
11. Ifh yourh spouseh diesh duringh theh taxh yearh andh youh doh noth remarry,h youh musthfileh
ashsinglehforhthehyearhofhdeath.
True False
12. Taxpayershwhohdohnothqualifyhforhmarried,hheadhofhhousehold,horhqualifyinghwidowh
orhwidowerhfilinghstatushmusthfilehashsingle.
True False
13. Ifhanhunmarriedhtaxpayerhpaidhmorehthanhhalfhtheh costh ofh keepingh ahhomeh whichhish t
hehprincipalhplacehofhresidencehofhahnephew,h whohishnoth herhdependent,hshehmayhusehthe
hheadhofhhouseholdhfilinghstatus.
True False
14. Thehmaximumh officialhindividualhincomehtaxhratehforh2012hish35hpercen
t.hTrue False
15. Allhtaxpayershmayhusehthehtaxhratehschedulehtohdeterminehtheirhtaxhliabilit
y.hTrue False
16. Theh headhofhhouseholdhtaxhratesh arehhigherhthanhtheh rateshforhahsinglehtaxpaye
r.hTrue False
17. Mosth statesh areh communityh propertyh states.
True False
, 18. Ifhtaxpayersharehmarriedhandhlivinghtogetherhaththehendhofhthehyear,htheyhmusthfile
hahjointhtaxhreturn.
True False
19. Ah taxpayerh whoh maintainshah householdh withh anh unmarriedh childh mayh qualifyh tohfileh
ashheadhofhhouseholdhevenhifhthehchildhishnoththehtaxpayer'shdependent.
True False
20. Ah marriedh personh withhahdependenthchildhmayhchoosehtohfilehashheadhofhhouseholdh if
h ithreduceshhishorhherhtaxhliability.
True False
21. Ah taxpayerh whoh ish livingh aloneh andh ish legallyh separatedh fromh hish orh herh spouseh under
h ahseparatehmaintenancehdecreehathyear-endhshouldhfilehashsingle.
True False
22. Anhindividual,hageh22,henrolledhonhahfull-
timehbasishathahtradehschool,hishconsideredhahstudenthforhpurposesh ofhdetermininghwhet
herhahdependencyhexemptionhishpermitted.hTrue False
23. Ah dependencyh exemptionh mayh beh claimedh byh theh supportingh taxpayerh inh theh yearh
ofhdeathhofhahdependent.
True False
24. Forh2012,hpersonalhandhdependencyhexemptionshareh$3,800heac
h.hTrue False
25. Scholarshipsh receivedh byh ah studenth mayh beh excludedh forh purposesh ofh theh supporth te
sthforhdetermininghthehavailabilityhofhthehdependencyhexemption.
True False
TAX
FUNDAMENTALS,
38TH EDITION,
GERALD E.
WHITTENBURG,
MARTHA ALTUS-
BULLER, STEVEN
GILL
,Chapterh1:hThehIndividualhIncomehTaxhReturn
1. Ahcorporationhishahreportinghentityhbuthnothahtax-
payinghentity.hTrue False
2. Partnershiph capitalhgainsh andhlossesh arehallocatedh separatelyhtoh eachh ofh theh partner
s.hTrue False
3. Marriedh taxpayersh mayh doubleh theirh standardh deductionh amounth byh filingh separat
ehreturns.
True False
4. Anhitemhishnothincludedhinh grosshincomehunlessh thehtaxh lawh specifiesh thath thehitem
hishsubjecthtohtaxation.
True False
5. Forh taxpayersh whoh doh noth itemizeh deductions,h theh standardh deductionh amounth
ishsubtractedhfromhthehtaxpayer'shadjustedhgrosshincome.
True False
6. Ahtaxpayerhwithhself-
employmenthincomehofh$600hmusthfilehahtaxhreturn.hTrue False
7. Ah dependenth childh withhearnedh incomeh inh excessh ofhtheh availableh standardh deducti
onhamounthmusthfilehahtaxhreturn.
True False
8. Ahsingleh taxpayer,h whoh ish noth blindh andh whoh ish underh ageh 65,h withh incomeh ofh $8,7
50hmusthfilehahtaxhreturn.
True False
,9. Ifhahtaxpayerhishduehahrefund,hithwillhbehmailedhtohthehtaxpayerhregardlesshofhwhetherh
hehorhshehfileshahtaxhreturn.
True False
10. Taxpayershwithhself-
employmenthincomehofh$400horhmorehmusthfilehahtaxhreturn.hTrue False
11. Ifh yourh spouseh diesh duringh theh taxh yearh andh youh doh noth remarry,h youh musthfileh
ashsinglehforhthehyearhofhdeath.
True False
12. Taxpayershwhohdohnothqualifyhforhmarried,hheadhofhhousehold,horhqualifyinghwidowh
orhwidowerhfilinghstatushmusthfilehashsingle.
True False
13. Ifhanhunmarriedhtaxpayerhpaidhmorehthanhhalfhtheh costh ofh keepingh ahhomeh whichhish t
hehprincipalhplacehofhresidencehofhahnephew,h whohishnoth herhdependent,hshehmayhusehthe
hheadhofhhouseholdhfilinghstatus.
True False
14. Thehmaximumh officialhindividualhincomehtaxhratehforh2012hish35hpercen
t.hTrue False
15. Allhtaxpayershmayhusehthehtaxhratehschedulehtohdeterminehtheirhtaxhliabilit
y.hTrue False
16. Theh headhofhhouseholdhtaxhratesh arehhigherhthanhtheh rateshforhahsinglehtaxpaye
r.hTrue False
17. Mosth statesh areh communityh propertyh states.
True False
, 18. Ifhtaxpayersharehmarriedhandhlivinghtogetherhaththehendhofhthehyear,htheyhmusthfile
hahjointhtaxhreturn.
True False
19. Ah taxpayerh whoh maintainshah householdh withh anh unmarriedh childh mayh qualifyh tohfileh
ashheadhofhhouseholdhevenhifhthehchildhishnoththehtaxpayer'shdependent.
True False
20. Ah marriedh personh withhahdependenthchildhmayhchoosehtohfilehashheadhofhhouseholdh if
h ithreduceshhishorhherhtaxhliability.
True False
21. Ah taxpayerh whoh ish livingh aloneh andh ish legallyh separatedh fromh hish orh herh spouseh under
h ahseparatehmaintenancehdecreehathyear-endhshouldhfilehashsingle.
True False
22. Anhindividual,hageh22,henrolledhonhahfull-
timehbasishathahtradehschool,hishconsideredhahstudenthforhpurposesh ofhdetermininghwhet
herhahdependencyhexemptionhishpermitted.hTrue False
23. Ah dependencyh exemptionh mayh beh claimedh byh theh supportingh taxpayerh inh theh yearh
ofhdeathhofhahdependent.
True False
24. Forh2012,hpersonalhandhdependencyhexemptionshareh$3,800heac
h.hTrue False
25. Scholarshipsh receivedh byh ah studenth mayh beh excludedh forh purposesh ofh theh supporth te
sthforhdetermininghthehavailabilityhofhthehdependencyhexemption.
True False
