Test Bank for Fundamentals of Taxation 2025 Edition by Ana Cruz Complete Chapters.pdf

b

2-1b
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwritte
nbconsentbofb
McGraw-HillbEducation.b
Chapterb02b
ExpandedbTaxbFormula,bFormsb1040Abandb1040,bandbBasicbConceptsb
bb
b

Trueb/bFalsebQuestionsb
bb

1.b
Thebfederalbindividualbincomebtaxbreturnsbarebtheb1040ES,b1040Abandb1040.bb
bb

TruebbbbFalseb
bb

2.bThebtaxbcodebdefinesbadjustedbgrossbincomeb(AGI)basbgrossbincomebminusbablistbofbpermitt
edb
deductions.bb
bb

TruebbbbFalseb
bb

3.bThebamountbofbtaxbliabilitybforbabtaxpayerbdependsbonbmanybfactors,bincludingbthebfilingbst
atusbofb
thebtaxpayer.bb
bb

TruebbbbFalseb
bb

4.bAbmarriedbcouplebcanbfilebabjointbreturnbonlybifbbothbhavebearnedbincome.bb
bb

TruebbbbFalseb
bb

5.bAbmarriedbcouplebinbthebprocessbofbobtainingbabdivorcebcannotbfilebabjointbtaxbreturn.bb
bb

TruebbbbFalseb
bb

6.bAbtaxpayerbfilingbseparatelybmustbshowbthebname,baddress,bandbsocialbsecuritybnumberbofb
theb
spousebonbthebtaxbreturn.bb
bb

TruebbbbFalseb
bb

DOWNLOADbTHEbTestbBankbforbFundamentalsbofbTaxationb2016bEditionb9th
bbbbbbbbbbbbbbbbbbbbbbbbbbbbEditionbCruz

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2-2b
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwritte
nbconsentbofb
McGraw-HillbEducation.b
7.b

,Tobqualifybforbheadbofbhouseholdbstatus,babtaxpayerbmustbmaintainbabhouseholdbthatbisbthebp
rincipalb
placebofbabodebofbabqualifyingbpersonbforbmorebthanbhalfbthebyear.bb
bb

TruebbbbFalseb
bb

8.bAbtaxpayerbcanbqualifybforbheadbofbhouseholdbevenbthoughbhisborbherbparentsbareblivingbinb
ab
separatebhouseholdbfrombthatbofbthebtaxpayerb(assumeballbotherbrequirementsbarebmet).bb
bb

TruebbbbFalseb
bb

9.bIfbabtaxpayer'sbspousebdiesbduringbthebtaxbyear,bthebtaxpayerbmustbfilebasbabqualifyingbwid
ow(er).bb
bb

TruebbbbFalseb
bb

10.bThebexemptionbamountbisbsubjectbtobannualbadjustmentbforbinflation.bb
bb

TruebbbbFalseb
bb

11.bThebpersonalbexemptionbforb2015bisb$4,000.bb
bb

TruebbbbFalseb
bb

12.bAbtaxpayerbcanbbebclaimedbasbabdependentbonbanotherbreturnbandbstillbheborbshebcanbclai
mbab
personalbexemptionbonbhisborbherbtaxbreturn.bb
bb

TruebbbbFalseb
bb

13.bTobbebclaimedbasbabdependent,babpersonbmustbbebabqualifyingbchildborbabqualifyingbrelativ
e.bb
bb

TruebbbbFalseb
bb

14.bAbqualifyingbchildbdoesbnotbhavebtobmeetbthebsupportbtestbinborderbtobbebclaimedbasbabde
pendent.bb
bb

TruebbbbFalseb
bb

DOWNLOADbTHEbTestbBankbforbFundamentalsbofbTaxationb2016bEditionb9th
bbbbbbbbbbbbbbbbbbbbbbbbbbbbEditionbCruz

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2-3b
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwritte
nbconsentbofb
McGraw-HillbEducation.b
15.bAbqualifyingbrelativebmustbbebrelatedbtobthebtaxpayerb(asblistedbbybthebIRS),borbbebabmem
berbofbtheb
taxpayer'sbhouseholdbforbthebentirebyear.bb

,bb

TruebbbbFalseb
bb

16.bAbtaxpayerbwhobeitherbisb65borbolderborbblindbcanbclaimbanbadditionalbstandardbdeductio
n.bb
bb

TruebbbbFalseb
bb

17.bThebstandardbdeductionbinb2015bforbabmarriedbcouple,bunderb65bandbnotbblind,bisb$12,60
0.bb
bb

TruebbbbFalseb
bb

18.bInb2015,bthebadditionalbstandardbdeductionbforbabsinglebtaxpayer,bwhobisb65borbolderband
bnotbblind,b

isb$1,200.bb
bb

TruebbbbFalseb
bb

19.bEvenbifbthebtotalbofbthebitemizedbdeductionsbisblowerbthanbthebstandardbdeduction,babtaxp
ayerb
shouldbchoosebtobitemizebonbhisborbherbtaxbreturn.bb
bb

TruebbbbFalseb
bb

20.bThebtaxbtablesbstopbatbtaxablebincomebofb$115,000.bb
bb

TruebbbbFalseb
bb

21.bMostbtaxpayersbmakebpaymentsbtobthebIRSbthroughbincomebtaxbwithholdingsbandbquarte
rlyb
estimatedbtaxbpayments.bb
bb

TruebbbbFalseb
bb

22.bAbtaxpayerbmaybrequestbanbautomaticbseven-
monthbextensionbofbtimebtobfilebhisborbherbtaxbreturn.bb
bb

TruebbbbFalseb
bb

DOWNLOADbTHEbTestbBankbforbFundamentalsbofbTaxationb2016bEditionb9th
bbbbbbbbbbbbbbbbbbbbbbbbbbbbEditionbCruz

mynursytest.store
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2-4b
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwritte
nbconsentbofb
McGraw-HillbEducation.b
23.bAnbextensionbtobfilebabtaxbreturnbisbanbextensionbofbtimebtobfilebandbanbextensionbofbtimebt
obpay.bb
bb

TruebbbbFalseb
bb

, 24.bThebmaximumbpenaltybforbfailurebtobfilebabtaxbreturnbthatbisbnotbduebtobfraudbisb25%.bb
bb

TruebbbbFalseb
bb

25.bThebIRSbcanbimposebab75%bpenaltybonbanybportionbofbunderstatementbofbtaxbthatbisbattri
butablebtob
negligence.bb
bb

TruebbbbFalseb
bb

26.bTaxablebincomeb(TI)bisbcomputedbafterbsubtractingbfrombadjustedbgrossbincomeb(AGI),bth
ebstandardb
deductionborbitemizedbdeductionsbandbpersonalbandbdependencybexemptions.bb
bb

TruebbbbFalseb
bb

27.bWhenbabtaxpayer'sbAGIbexceedsbcertainblevels,bcertainbtaxbbenefitsbarebreducedborbelimin
ated.bb
bb

TruebbbbFalseb
bb

28.bMaritalbstatusbofbabtaxpayerbisbdeterminedbonbtheblastbdaybofbthebtaxbyear.bb
bb

TruebbbbFalseb
bb

29.bAbcouplebwhobisblegallybmarriedbonbtheblastbdaybofbthebtaxbyearbcannotbfilebmarriedbfilingb
separately.bb
bb

TruebbbbFalseb
bb

30.bEvenbthoughbthebtaxpayerbisbclaimedbasbabdependentbonbanotherbtaxbreturn,bheborbshebca
nbstillb
receivebanbexemptionbamountbforbhimselfborbherselfbwhenbfilingbhisborbherbtaxbreturn.bb
bb

TruebbbbFalseb
bb

DOWNLOADbTHEbTestbBankbforbFundamentalsbofbTaxationb2016bEditionb9th
bbbbbbbbbbbbbbbbbbbbbbbbbbbbEditionbCruz

mynursytest.store
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2-5b
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwritte
nbconsentbofb
McGraw-HillbEducation.b
31.bInbabmultiplebsupportbagreement,bthebtaxpayerbwhobwillbreceivebthebexemptionbmustbfile
ballbtheb

Formsb2120bwithbhisborbherbtaxbreturn.bb
bb

TruebbbbFalseb
bb

32.bThebtaxpayer'sbbrotherbmustblivebwithbthebtaxpayerbforbthebentirebyearbtobmeetbthebrelati
onshipborb