Solutions Manual For Income Tax Fundamentals
2025 43rd Edition By Gerald Whittenburg, Steven
Gill. Latest Edition
, CHAPTER 1
THE INDIVIDUAL INCOME TAX RETURN
Group 1 – Mul tipl e Choice Questions
1. D The Income Tax Includes Elements Of Social And 20. C Surviving Spouse Is Preferred To Head Of
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 Multiple
3. C The 1040A And 1040-EZ No Longer Exist And The 1120 Is Support Agreement (LO 1.6)
For Corporations (LO 1.2) 22. D The Daughter Fails The Age Test To Be A
4. D Partnerships Use Form 1065 To Report Income Qualifying Child And She Fails The Gross
Tax Information. A Partner Will Report Their Income Test ($4,400 In 2022) To Be A
Share Of Income From A Part- Nership On A Qualifying Relative (LO 1.6)
Form1040 (LO 1.2) 23. D The Child Tax Credit In 2022 Is $2,000 (LO 1.6)
5. D Capital Gains And Losses Are Reported 24. B The Child Tax Credit For The 13-Year-Old Child Is
Directly On The Face Of The Form 1040 (From $2,000. The Mother Does Not Meet The Support Test
Schedule D) (LO 1.2) And Cannot Be Claimed (LO 1.6)
6. D A Partnership Is Not Generally A Tax-Paying Entity 25. B Must Be Age 16 Or Under For Child Tax Credit (LO 1.6)
(LO 1.2) 26. A Head Of Household Standard Deduction Plus
7. C Student Loan Interest Is A For AGI Deduction. The Additional Standard Deduction For Age 65 ($19,400 +
Other Responses Are All Itemized (From AGI) $1,750) (LO 1.7)
Deductions (LO 1.3) 27. B Taxpayers Age 65 Or Older Are Eligible For An
8. B The Deduction For IRA Contributions Is A For AGI Additional Standard Deduction Amount (LO
Deduction (LO 1.3) 1.7)
9. D $98,000 – $13,000 (Standard Deduction Is Less Than 28. B Taxpayers That Are Blind Are Eligible For An
Itemized Deductions) (LO 1.3) Additional Standard Deduction Amount (LO 1.7)
10. D For AGI Adjustments Are Deducted To Get To AGI (LO 29. D Earned Income Plus $400 (LO 1.7)
1.3) 30. E Standard Deduction May Not Exceed Typical Amount
11. B The Larger Of The Two May Be Deducted (LO 1.3) (LO 1.7)
12. A An Exclusion Reduces Gross Income (LO 1.3) 31. D Business Inventory Is Not Considered A Capital
13. B Filing Thresholds Generally Are The Same As The Asset (LO 1.8)
Standard Deduction Amount (LO 1.4) 32. A Gain Of $15,000 ($25,000 Amount Realized Less
14. D Ben’s Income Would Need To Exceed The Standard $10,000 Adjusted Basis) Has Been Held For More
Deduction To Require Filing A Tax Return (LO 1.4) Than 12 Months And Is Long-Term (LO 1.8)
15. D $25,900 + $1,400 (LO 1.4) 33. C $10,000 = $240,000 – ($270,000 – $40,000) (LO 1.8)
16. C Single Dependent Over 65 And Blind Thresh- Old Is 34. A $43,000 – $3,000. Net Capital Losses Of Up To $3,000
$4,500 For Unearned Income (LO 1.4) May Be Deducted From Ordinary Income For
17. C Joan Qualifies As Either Single Or Head Of Individual Taxpayers (LO 1.8)
Household; However, Head Of Household Is More 35. C Line 7 Is Capital Gain Or (Loss) (LO 1.9)
Advantageous (LO 1.5) 36. B Preparers Must Get A Signed Authorization To E-File
18. D Although Dorothy Does Not Live With Glenda, Since From The Taxpayer. (LO 1.10)
Dorothy Is A Parent That Glenda Supports, Glenda 37. B About 90% Of Returns Are Filed Electronically (LO 1.10)
May File As Head Of Household (LO 1.5)
19. D Taxpayer May File Married Filing Jointly In Year Of
Spouse’s Death (LO 1.5)
1-1
,
, 1-2 Chapter 1 – The Individual Income Tax Return
Group 2 – Probl ems
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
, CHAPTER 1
THE INDIVIDUAL INCOME TAX RETURN
Group 1 – Mul tipl e Choice Questions
1. D The Income Tax Includes Elements Of Social And 20. C Surviving Spouse Is Preferred To Head Of
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 Multiple
3. C The 1040A And 1040-EZ No Longer Exist And The 1120 Is Support Agreement (LO 1.6)
For Corporations (LO 1.2) 22. D The Daughter Fails The Age Test To Be A
4. D Partnerships Use Form 1065 To Report Income Qualifying Child And She Fails The Gross
Tax Information. A Partner Will Report Their Income Test ($4,400 In 2022) To Be A
Share Of Income From A Part- Nership On A Qualifying Relative (LO 1.6)
Form1040 (LO 1.2) 23. D The Child Tax Credit In 2022 Is $2,000 (LO 1.6)
5. D Capital Gains And Losses Are Reported 24. B The Child Tax Credit For The 13-Year-Old Child Is
Directly On The Face Of The Form 1040 (From $2,000. The Mother Does Not Meet The Support Test
Schedule D) (LO 1.2) And Cannot Be Claimed (LO 1.6)
6. D A Partnership Is Not Generally A Tax-Paying Entity 25. B Must Be Age 16 Or Under For Child Tax Credit (LO 1.6)
(LO 1.2) 26. A Head Of Household Standard Deduction Plus
7. C Student Loan Interest Is A For AGI Deduction. The Additional Standard Deduction For Age 65 ($19,400 +
Other Responses Are All Itemized (From AGI) $1,750) (LO 1.7)
Deductions (LO 1.3) 27. B Taxpayers Age 65 Or Older Are Eligible For An
8. B The Deduction For IRA Contributions Is A For AGI Additional Standard Deduction Amount (LO
Deduction (LO 1.3) 1.7)
9. D $98,000 – $13,000 (Standard Deduction Is Less Than 28. B Taxpayers That Are Blind Are Eligible For An
Itemized Deductions) (LO 1.3) Additional Standard Deduction Amount (LO 1.7)
10. D For AGI Adjustments Are Deducted To Get To AGI (LO 29. D Earned Income Plus $400 (LO 1.7)
1.3) 30. E Standard Deduction May Not Exceed Typical Amount
11. B The Larger Of The Two May Be Deducted (LO 1.3) (LO 1.7)
12. A An Exclusion Reduces Gross Income (LO 1.3) 31. D Business Inventory Is Not Considered A Capital
13. B Filing Thresholds Generally Are The Same As The Asset (LO 1.8)
Standard Deduction Amount (LO 1.4) 32. A Gain Of $15,000 ($25,000 Amount Realized Less
14. D Ben’s Income Would Need To Exceed The Standard $10,000 Adjusted Basis) Has Been Held For More
Deduction To Require Filing A Tax Return (LO 1.4) Than 12 Months And Is Long-Term (LO 1.8)
15. D $25,900 + $1,400 (LO 1.4) 33. C $10,000 = $240,000 – ($270,000 – $40,000) (LO 1.8)
16. C Single Dependent Over 65 And Blind Thresh- Old Is 34. A $43,000 – $3,000. Net Capital Losses Of Up To $3,000
$4,500 For Unearned Income (LO 1.4) May Be Deducted From Ordinary Income For
17. C Joan Qualifies As Either Single Or Head Of Individual Taxpayers (LO 1.8)
Household; However, Head Of Household Is More 35. C Line 7 Is Capital Gain Or (Loss) (LO 1.9)
Advantageous (LO 1.5) 36. B Preparers Must Get A Signed Authorization To E-File
18. D Although Dorothy Does Not Live With Glenda, Since From The Taxpayer. (LO 1.10)
Dorothy Is A Parent That Glenda Supports, Glenda 37. B About 90% Of Returns Are Filed Electronically (LO 1.10)
May File As Head Of Household (LO 1.5)
19. D Taxpayer May File Married Filing Jointly In Year Of
Spouse’s Death (LO 1.5)
1-1
,
, 1-2 Chapter 1 – The Individual Income Tax Return
Group 2 – Probl ems
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)
