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