test bank for income tax fundamentals 38th edition gerald e whittenburg martha altus buller

,TABLEOFCONTENTS
1. TheIndividualIncomeTaxReturn.
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2. GrossIncomeandExclusions.
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3. BusinessIncomeandExpenses,PartI.
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4. BusinessIncomeandExpenses,PartII.
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5. ItemizedDeductionsandOtherIncentives.
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6. CreditsandSpecialTaxes.
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7. AccountingPeriodsandMethodsandDepreciation.
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8. CapitalGainsandLosses.
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9. Withholding,EstimatedPayments,andPayrollTaxes.
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10. PartnershipTaxation. n




11. TheCorporateIncomeTax.
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12. TaxAdministrationandTaxPlanning.
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,Chapter1:TheIndividualIncomeTaxReturn


1. Acorporation is a reporting entity but not atax-paying entity.
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FALSE



2. Partnershipcapitalgains and losses areallocated separately toeachofthe partners.
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TRUE



3. Married taxpayers may double their standard deduction amount by filing separatereturns.
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FALSE



4. An itemis notincludedingrossincomeunlessthetax law specifies thattheitemissubject totaxa tion.
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FALSE



5. Fortaxpayerswhodo notitemize deductions, the standard deduction amount issubtractedfr om
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the taxpayer's adjusted gross income.
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TRUE



6. Ataxpayer withself-employment income of$600must fileatax return.
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TRUE



7. Adependent child with earned income in excess of the available standard deductionamount must
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file a tax return.
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TRUE



8. Asingle taxpayer, who is not blind and who is under age 65, with income of $8,750mustfileata
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xreturn.
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FALSE

, 9. Ifataxpayerisduearefund,itwillbemailedto the taxpayerregardlessofwhetherheorshe files ataxr eturn.
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FALSE



10. Taxpayerswithself-employment income of $400ormore must file ataxreturn.
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TRUE



11. If your spouse dies during the tax year and you do not remarry, you must file as s ingleforthe
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yearofdeath.
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FALSE



12. Taxpayerswho donotqualifyformarried, headof household,orqualifyingwidoworwidowerfili
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ngstatus must file as single.
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TRUE



13. Ifanunmarriedtaxpayer paid more thanhalf thecostofkeepingahome whichis theprincipalplace of
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residence of a nephew, who is not her dependent, she may use the headofhouseholdfiling status. FALSE
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14. The maximum official individual income tax rate for 2012 is 35 percent.
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TRUE



15. Alltaxpayers may use the tax rate schedule to determine their tax liability.
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FALSE



16. The head of householdtax rates arehigher than the rates for a single taxpayer.
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FALSE



17. Moststates are community property states.
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FALSE