Federal Income Tax Exam 1 Questions &
Answers 100% Solved!!
Which of the following amounts must be included in the gross income of the recipient? -
ANSWERSRoyalties
In the tax law, the definition of gross income is: - ANSWERSAll income from whatever
source derived
All of the following amounts are taxable income to the recipient except: -
ANSWERSGifts
Mary received the following items during 2014:
Christmas bonus from her employer
$500
Christmas gift from her father
$ 35
Prize won in a radio show contest
$100
What is the total amount of the above items that must be included in Mary's 2014 gross
income? - ANSWERS$600
Tim receives $500 of qualified dividends from Exxon in 2014. He is in the 10 percent
ordinary tax bracket. Tim's tax on the dividends will be: - ANSWERS$0
Laura and Leon were granted a divorce in 2004. In accordance with the decree, Leon
made the following payments to Laura in 2014:
Child support payments contingent on the age of the child
$4,000
Indefinite periodic payments terminating on Laura's death
$6,000
How much of the payments can he deduct as alimony in 2014? - ANSWERS$6000
Ricky (age 50) and Lucy (age 49) are married taxpayers who file a joint return for 2014.
They have gross income of $150,000. Their deductions for adjusted gross income are
$5,000 and they have itemized deductions of $12,000, consisting of $7,000 in state
income taxes and $5,000 in mortgage interest expense. If they claim two personal
Answers 100% Solved!!
Which of the following amounts must be included in the gross income of the recipient? -
ANSWERSRoyalties
In the tax law, the definition of gross income is: - ANSWERSAll income from whatever
source derived
All of the following amounts are taxable income to the recipient except: -
ANSWERSGifts
Mary received the following items during 2014:
Christmas bonus from her employer
$500
Christmas gift from her father
$ 35
Prize won in a radio show contest
$100
What is the total amount of the above items that must be included in Mary's 2014 gross
income? - ANSWERS$600
Tim receives $500 of qualified dividends from Exxon in 2014. He is in the 10 percent
ordinary tax bracket. Tim's tax on the dividends will be: - ANSWERS$0
Laura and Leon were granted a divorce in 2004. In accordance with the decree, Leon
made the following payments to Laura in 2014:
Child support payments contingent on the age of the child
$4,000
Indefinite periodic payments terminating on Laura's death
$6,000
How much of the payments can he deduct as alimony in 2014? - ANSWERS$6000
Ricky (age 50) and Lucy (age 49) are married taxpayers who file a joint return for 2014.
They have gross income of $150,000. Their deductions for adjusted gross income are
$5,000 and they have itemized deductions of $12,000, consisting of $7,000 in state
income taxes and $5,000 in mortgage interest expense. If they claim two personal
