TEST BANK: INCOME
b b
TAX FUNDAMENT
b
ALS,38TH EDITIO
b b
N, GERALD E. WHI
b b b
TTENBURG, MAR b
THA ALTUS- b
BULLER, STEVEN
b b b
GILL
,Chapter 1: The Individual Income Tax Return
b b b b b b
1. Abcorporationbisbabreportingbentitybbutbnotbabtax-
payingbentity.bTrue False
2. Partnershipbcapitalbgainsbandblossesbareballocatedbseparatelybtobeachbofbthebpartners.bTr
ue False
3. Marriedbtaxpayersbmaybdoublebtheirbstandardbdeductionbamountbbybfilingbseparatebr
eturns.
True False
4. Anbitembisbnotbincludedbinbgrossbincomebunlessbthebtaxblawbspecifiesbthatbthebitembisbsu
bjectbtobtaxation.
True False
5. Forbtaxpayersbwhobdobnotbitemizebdeductions,bthebstandardbdeductionbamountbisbsu
btractedbfrombthebtaxpayer'sbadjustedbgrossbincome.
True False
6. Abtaxpayerbwithbself-
employmentbincomebofb$600bmustbfilebabtaxbreturn.bTrue False
7. Abdependentbchildbwithbearnedbincomebinbexcessbofbthebavailablebstandardbdeductionba
mountbmustbfilebabtaxbreturn.
True False
8. Absinglebtaxpayer,bwhobisbnotbblindbandbwhobisbunderbageb65,bwithbincomebofb$8,750bm
ustbfilebabtaxbreturn.
True False
,9. Ifbabtaxpayerbisbduebabrefund,bitbwillbbebmailedbtobthebtaxpayerbregardlessbofbwhetherbheborb
shebfilesbabtaxbreturn.
True False
10. Taxpayersbwithbself-
employmentbincomebofb$400borbmorebmustbfilebabtaxbreturn.bTrue False
11. Ifbyourbspousebdiesbduringbthebtaxbyearbandbyoubdobnotbremarry,byoubmustbfilebasbsin
glebforbthebyearbofbdeath.
True False
12. Taxpayersbwhobdobnotbqualifybforbmarried,bheadbofbhousehold,borbqualifyingbwidowborbwi
dowerbfilingbstatusbmustbfilebasbsingle.
True False
13. Ifbanbunmarriedbtaxpayerbpaidbmorebthanbhalfbthebcostbofbkeepingbabhomebwhichbisbthebpri
ncipalbplacebofbresidencebofbabnephew,bwhobisbnotbherbdependent,bshebmaybusebthebheadbofb
householdbfilingbstatus.
True False
14. Thebmaximumbofficialbindividualbincomebtaxbratebforb2012bisb35bpercent.bT
rue False
15. Allbtaxpayersbmaybusebthebtaxbratebschedulebtobdeterminebtheirbtaxbliability.bT
rue False
16. Thebheadbofbhouseholdbtaxbratesbarebhigherbthanbthebratesbforbabsinglebtaxpayer.bTr
ue False
17. Mostbstatesbarebcommunitybpropertybstates.
True False
, 18. Ifbtaxpayersbarebmarriedbandblivingbtogetherbatbthebendbofbthebyear,btheybmustbfilebabjoi
ntbtaxbreturn.
True False
19. Abtaxpayerbwhobmaintainsbabhouseholdbwithbanbunmarriedbchildbmaybqualifybtobfilebasbhe
adbofbhouseholdbevenbifbthebchildbisbnotbthebtaxpayer'sbdependent.
True False
20. Abmarriedbpersonbwithbabdependentbchildbmaybchoosebtobfilebasbheadbofbhouseholdbifbitbre
ducesbhisborbherbtaxbliability.
True False
21. Abtaxpayerbwhobisblivingbalonebandbisblegallybseparatedbfrombhisborbherbspousebunderbabse
paratebmaintenancebdecreebatbyear-endbshouldbfilebasbsingle.
True False
22. Anbindividual,bageb22,benrolledbonbabfull-
timebbasisbatbabtradebschool,bisbconsideredbabstudentbforbpurposesbofbdeterminingbwhether
babdependency bexemption bisbpermitted.bTrue False
23. Abdependencybexemptionbmaybbebclaimedbbybthebsupportingbtaxpayerbinbthebyearbofbde
athbofbabdependent.
True False
24. Forb2012,bpersonalbandbdependencybexemptionsbareb$3,800beach.bT
rue False
25. Scholarshipsbreceivedbbybabstudentbmaybbebexcludedbforbpurposesbofbthebsupportbtestbfo
rbdeterminingbthebavailabilitybofbthebdependencybexemption.
True False
b b
TAX FUNDAMENT
b
ALS,38TH EDITIO
b b
N, GERALD E. WHI
b b b
TTENBURG, MAR b
THA ALTUS- b
BULLER, STEVEN
b b b
GILL
,Chapter 1: The Individual Income Tax Return
b b b b b b
1. Abcorporationbisbabreportingbentitybbutbnotbabtax-
payingbentity.bTrue False
2. Partnershipbcapitalbgainsbandblossesbareballocatedbseparatelybtobeachbofbthebpartners.bTr
ue False
3. Marriedbtaxpayersbmaybdoublebtheirbstandardbdeductionbamountbbybfilingbseparatebr
eturns.
True False
4. Anbitembisbnotbincludedbinbgrossbincomebunlessbthebtaxblawbspecifiesbthatbthebitembisbsu
bjectbtobtaxation.
True False
5. Forbtaxpayersbwhobdobnotbitemizebdeductions,bthebstandardbdeductionbamountbisbsu
btractedbfrombthebtaxpayer'sbadjustedbgrossbincome.
True False
6. Abtaxpayerbwithbself-
employmentbincomebofb$600bmustbfilebabtaxbreturn.bTrue False
7. Abdependentbchildbwithbearnedbincomebinbexcessbofbthebavailablebstandardbdeductionba
mountbmustbfilebabtaxbreturn.
True False
8. Absinglebtaxpayer,bwhobisbnotbblindbandbwhobisbunderbageb65,bwithbincomebofb$8,750bm
ustbfilebabtaxbreturn.
True False
,9. Ifbabtaxpayerbisbduebabrefund,bitbwillbbebmailedbtobthebtaxpayerbregardlessbofbwhetherbheborb
shebfilesbabtaxbreturn.
True False
10. Taxpayersbwithbself-
employmentbincomebofb$400borbmorebmustbfilebabtaxbreturn.bTrue False
11. Ifbyourbspousebdiesbduringbthebtaxbyearbandbyoubdobnotbremarry,byoubmustbfilebasbsin
glebforbthebyearbofbdeath.
True False
12. Taxpayersbwhobdobnotbqualifybforbmarried,bheadbofbhousehold,borbqualifyingbwidowborbwi
dowerbfilingbstatusbmustbfilebasbsingle.
True False
13. Ifbanbunmarriedbtaxpayerbpaidbmorebthanbhalfbthebcostbofbkeepingbabhomebwhichbisbthebpri
ncipalbplacebofbresidencebofbabnephew,bwhobisbnotbherbdependent,bshebmaybusebthebheadbofb
householdbfilingbstatus.
True False
14. Thebmaximumbofficialbindividualbincomebtaxbratebforb2012bisb35bpercent.bT
rue False
15. Allbtaxpayersbmaybusebthebtaxbratebschedulebtobdeterminebtheirbtaxbliability.bT
rue False
16. Thebheadbofbhouseholdbtaxbratesbarebhigherbthanbthebratesbforbabsinglebtaxpayer.bTr
ue False
17. Mostbstatesbarebcommunitybpropertybstates.
True False
, 18. Ifbtaxpayersbarebmarriedbandblivingbtogetherbatbthebendbofbthebyear,btheybmustbfilebabjoi
ntbtaxbreturn.
True False
19. Abtaxpayerbwhobmaintainsbabhouseholdbwithbanbunmarriedbchildbmaybqualifybtobfilebasbhe
adbofbhouseholdbevenbifbthebchildbisbnotbthebtaxpayer'sbdependent.
True False
20. Abmarriedbpersonbwithbabdependentbchildbmaybchoosebtobfilebasbheadbofbhouseholdbifbitbre
ducesbhisborbherbtaxbliability.
True False
21. Abtaxpayerbwhobisblivingbalonebandbisblegallybseparatedbfrombhisborbherbspousebunderbabse
paratebmaintenancebdecreebatbyear-endbshouldbfilebasbsingle.
True False
22. Anbindividual,bageb22,benrolledbonbabfull-
timebbasisbatbabtradebschool,bisbconsideredbabstudentbforbpurposesbofbdeterminingbwhether
babdependency bexemption bisbpermitted.bTrue False
23. Abdependencybexemptionbmaybbebclaimedbbybthebsupportingbtaxpayerbinbthebyearbofbde
athbofbabdependent.
True False
24. Forb2012,bpersonalbandbdependencybexemptionsbareb$3,800beach.bT
rue False
25. Scholarshipsbreceivedbbybabstudentbmaybbebexcludedbforbpurposesbofbthebsupportbtestbfo
rbdeterminingbthebavailabilitybofbthebdependencybexemption.
True False
