Solutions Manual For Income Tax Fundamentals
2025 43rd Edition By Gerald Whittenburg, Steven
Gill. Latest Edition All Chapters 1-12 100% Original
Verified A+ Grade
,chapter 1
the individual income tax return
group 1 – multiple choice questions
1. d the income tax includes elements of social 20. c surviving spouse is preferred to head of
and economic policy (lo 1.1) household (lo 1.5)
2. c the income tax was authorized by the 16th 21. e either margaret or her sister (but not both) may
amendment in 1913 (lo 1.1) claim the mother as a dependent under a
3. c the 1040a and 1040-ez no longer exist and the multiple support agreement (lo 1.6)
1120 is for corporations (lo 1.2) 22. d the daughter fails the age test to be a
4. d partnerships use form 1065 to report qualifying child and she fails the gross
income tax information. a partner will income test ($4,400 in 2022) to be a
report their share of income from a part- qualifying relative (lo 1.6)
nership on a form1040 (lo 1.2) 23. d the child tax credit in 2022 is $2,000
5. d capital gains and losses are reported (lo 1.6)
directly on the face of the form 1040 24. b the child tax credit for the 13-year-old child is
(from schedule d) (lo 1.2) $2,000. the mother does not meet the
6. d a partnership is not generally a tax-paying support test and cannot be claimed (lo 1.6)
entity (lo 1.2) 25. b must be age 16 or under for child tax credit
7. c student loan interest is a for agi deduction. the (lo 1.6)
other responses are all itemized (from agi) 26. a head of household standard deduction plus
deductions (lo 1.3) additional standard deduction for age 65
8. b the deduction for ira contributions is a for ($19,400 + $1,750) (lo 1.7)
agi deduction (lo 1.3) 27. b taxpayers age 65 or older are eligible for
9. d $98,000 – $13,000 (standard deduction is an additional standard deduction
less than itemized deductions) (lo 1.3) amount (lo 1.7)
10. d for agi adjustments are deducted to get to 28. b taxpayers that are blind are eligible for an
agi (lo 1.3) additional standard deduction amount (lo
1.7)
11. b the larger of the two may be deducted (lo
1.3) 29. d earned income plus $400 (lo 1.7)
12. a an exclusion reduces gross income (lo 1.3) 30. e standard deduction may not exceed typical
13. b filing thresholds generally are the same as the amount (lo 1.7)
standard deduction amount (lo 1.4) 31. d business inventory is not considered a
14. d ben’s income would need to exceed the capital asset (lo 1.8)
standard deduction to require filing a tax 32. a gain of $15,000 ($25,000 amount realized
return (lo 1.4) less $10,000 adjusted basis) has been held
15. d $25,900 + $1,400 (lo 1.4) for more than 12 months and is long-term (lo
1.8)
16. c single dependent over 65 and blind thresh- old
is $4,500 for unearned income (lo 1.4) 33. c $10,000 = $240,000 – ($270,000 – $40,000)
(lo 1.8)
17. c joan qualifies as either single or head of
34. a $43,000 – $3,000. net capital losses of up to
household; however, head of household is
more advantageous (lo 1.5) $3,000 may be deducted from ordinary
income for individual taxpayers (lo 1.8)
18. d although dorothy does not live with
glenda, since dorothy is a parent that 35. c line 7 is capital gain or (loss) (lo 1.9)
glenda supports, glenda may file as head of 36. b preparers must get a signed authorization to e-
household (lo 1.5) file from the taxpayer. (lo 1.10)
19. d taxpayer may file married filing jointly in 37. b about 90% of returns are filed electronically (lo
year of spouse’s death (lo 1.5) 1.10)
1-1
,
, 1-2 Chapter 1 – The Individual Income Tax Return
group 2 – problems
1. a. raising revenue to operate the government.
b. furthering economic goals such as reducing unemployment.
c. furthering social goals such as encouraging contributions to charities. (lo 1.1)
2. a. form 1040
b. schedule b
c. schedule d
d. schedule a
e. schedule 2
f. schedule e
g. schedule 3
h. schedule c
i. schedule 1 (lo 1.2)
3. a. $36,300 = $42,000 + $300 – $6,000.
b. $25,900, the greater of itemized deductions or the standard deduction of $25,900.
c. $10,400 = $36,300 – $25,900. (lo 1.3)
4. a. $25,000.
b. $12,950, the greater of total itemized deductions or the standard deduction amount.
c. $12,050 = $25,000 – $12,950. (lo 1.3)
5. a. $53,800 = $54,000 + $2,800 – $3,000 ($7,000 capital loss limited to $3,000).
b. $12,950
c. $40,850 = $53,800 – $12,950. (lo 1.3 and 1.8)
6. a. $47,500 = $48,000 + $2,500 – $3,000.
b. $25,900, the greater of itemized deductions or the standard deduction of $25,900.
c. $21,600 = $47,500 – $25,900.
d. $2,184 (tax table) (lo 1.3, 1.5, and 1.7)
7. adjusted gross income $18,000
less: itemized deductions –2,400
taxable income $15,600
marco’s tax liability from the tax table is $1,670. note: because they are married and filing separately and mar- co’s
spouse tatiana itemizes her deductions, marco must also itemize his deductions, even though the itemized deductions
total is less than the standard deduction he would be otherwise entitled to. (lo 1.3, 1.5, and 1.7)
8. adjusted gross income ($13,200 + $1,450) $ 14,650
less: standard deduction –12,950
taxable income $ 1,700
(lo 1.3, 1.5, and 1.7)
(note: see chapter 6 for the tax credit computation for dependent college students under age 24.)
9. a. $34,050 = $47,000 – $12,950.
b. tax tables. taxpayers with income up to $100,000 must use the tax tables.
c. $3,884. (lo 1.3, 1.5, and 1.7)
10. a. $66,000 = $50,000 + $8,000 + $5,000 + $3,000.
b. $63,500 = $66,000 – $2,500.
c. $27,000, the greater of itemized deductions or the standard deduction of $25,900.
d. $36,500 = $63,500 – $27,000.
e. $3,972 (lo 1.3, 1.5, and 1.7)
2025 43rd Edition By Gerald Whittenburg, Steven
Gill. Latest Edition All Chapters 1-12 100% Original
Verified A+ Grade
,chapter 1
the individual income tax return
group 1 – multiple choice questions
1. d the income tax includes elements of social 20. c surviving spouse is preferred to head of
and economic policy (lo 1.1) household (lo 1.5)
2. c the income tax was authorized by the 16th 21. e either margaret or her sister (but not both) may
amendment in 1913 (lo 1.1) claim the mother as a dependent under a
3. c the 1040a and 1040-ez no longer exist and the multiple support agreement (lo 1.6)
1120 is for corporations (lo 1.2) 22. d the daughter fails the age test to be a
4. d partnerships use form 1065 to report qualifying child and she fails the gross
income tax information. a partner will income test ($4,400 in 2022) to be a
report their share of income from a part- qualifying relative (lo 1.6)
nership on a form1040 (lo 1.2) 23. d the child tax credit in 2022 is $2,000
5. d capital gains and losses are reported (lo 1.6)
directly on the face of the form 1040 24. b the child tax credit for the 13-year-old child is
(from schedule d) (lo 1.2) $2,000. the mother does not meet the
6. d a partnership is not generally a tax-paying support test and cannot be claimed (lo 1.6)
entity (lo 1.2) 25. b must be age 16 or under for child tax credit
7. c student loan interest is a for agi deduction. the (lo 1.6)
other responses are all itemized (from agi) 26. a head of household standard deduction plus
deductions (lo 1.3) additional standard deduction for age 65
8. b the deduction for ira contributions is a for ($19,400 + $1,750) (lo 1.7)
agi deduction (lo 1.3) 27. b taxpayers age 65 or older are eligible for
9. d $98,000 – $13,000 (standard deduction is an additional standard deduction
less than itemized deductions) (lo 1.3) amount (lo 1.7)
10. d for agi adjustments are deducted to get to 28. b taxpayers that are blind are eligible for an
agi (lo 1.3) additional standard deduction amount (lo
1.7)
11. b the larger of the two may be deducted (lo
1.3) 29. d earned income plus $400 (lo 1.7)
12. a an exclusion reduces gross income (lo 1.3) 30. e standard deduction may not exceed typical
13. b filing thresholds generally are the same as the amount (lo 1.7)
standard deduction amount (lo 1.4) 31. d business inventory is not considered a
14. d ben’s income would need to exceed the capital asset (lo 1.8)
standard deduction to require filing a tax 32. a gain of $15,000 ($25,000 amount realized
return (lo 1.4) less $10,000 adjusted basis) has been held
15. d $25,900 + $1,400 (lo 1.4) for more than 12 months and is long-term (lo
1.8)
16. c single dependent over 65 and blind thresh- old
is $4,500 for unearned income (lo 1.4) 33. c $10,000 = $240,000 – ($270,000 – $40,000)
(lo 1.8)
17. c joan qualifies as either single or head of
34. a $43,000 – $3,000. net capital losses of up to
household; however, head of household is
more advantageous (lo 1.5) $3,000 may be deducted from ordinary
income for individual taxpayers (lo 1.8)
18. d although dorothy does not live with
glenda, since dorothy is a parent that 35. c line 7 is capital gain or (loss) (lo 1.9)
glenda supports, glenda may file as head of 36. b preparers must get a signed authorization to e-
household (lo 1.5) file from the taxpayer. (lo 1.10)
19. d taxpayer may file married filing jointly in 37. b about 90% of returns are filed electronically (lo
year of spouse’s death (lo 1.5) 1.10)
1-1
,
, 1-2 Chapter 1 – The Individual Income Tax Return
group 2 – problems
1. a. raising revenue to operate the government.
b. furthering economic goals such as reducing unemployment.
c. furthering social goals such as encouraging contributions to charities. (lo 1.1)
2. a. form 1040
b. schedule b
c. schedule d
d. schedule a
e. schedule 2
f. schedule e
g. schedule 3
h. schedule c
i. schedule 1 (lo 1.2)
3. a. $36,300 = $42,000 + $300 – $6,000.
b. $25,900, the greater of itemized deductions or the standard deduction of $25,900.
c. $10,400 = $36,300 – $25,900. (lo 1.3)
4. a. $25,000.
b. $12,950, the greater of total itemized deductions or the standard deduction amount.
c. $12,050 = $25,000 – $12,950. (lo 1.3)
5. a. $53,800 = $54,000 + $2,800 – $3,000 ($7,000 capital loss limited to $3,000).
b. $12,950
c. $40,850 = $53,800 – $12,950. (lo 1.3 and 1.8)
6. a. $47,500 = $48,000 + $2,500 – $3,000.
b. $25,900, the greater of itemized deductions or the standard deduction of $25,900.
c. $21,600 = $47,500 – $25,900.
d. $2,184 (tax table) (lo 1.3, 1.5, and 1.7)
7. adjusted gross income $18,000
less: itemized deductions –2,400
taxable income $15,600
marco’s tax liability from the tax table is $1,670. note: because they are married and filing separately and mar- co’s
spouse tatiana itemizes her deductions, marco must also itemize his deductions, even though the itemized deductions
total is less than the standard deduction he would be otherwise entitled to. (lo 1.3, 1.5, and 1.7)
8. adjusted gross income ($13,200 + $1,450) $ 14,650
less: standard deduction –12,950
taxable income $ 1,700
(lo 1.3, 1.5, and 1.7)
(note: see chapter 6 for the tax credit computation for dependent college students under age 24.)
9. a. $34,050 = $47,000 – $12,950.
b. tax tables. taxpayers with income up to $100,000 must use the tax tables.
c. $3,884. (lo 1.3, 1.5, and 1.7)
10. a. $66,000 = $50,000 + $8,000 + $5,000 + $3,000.
b. $63,500 = $66,000 – $2,500.
c. $27,000, the greater of itemized deductions or the standard deduction of $25,900.
d. $36,500 = $63,500 – $27,000.
e. $3,972 (lo 1.3, 1.5, and 1.7)
