2009 Annual Edition/Test Bank
CHAPTER 3
TAX DETERMINATION; PERSONAL AND DEPENDENCY EXEMPTIONS;
AN OVERVIEW OF PROPERTY TRANSACTIONS
Instructor: The test items in both the print Test Bank and ExamView test-creation software
are numbered by question type within each chapter. Thus, users of ExamView can more
easily preview their selections using the printed Test Bank in the same numbering system.
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
TRUE OR FALSE
1 Level of current income tax rates Unchanged 1
2 Definition of ―gross income‖ Unchanged 2
3 Income taxation and example of global approach Unchanged 3
4 Effect of AGI on the medical deduction Modified 4
5 Filing status: surviving spouse versus married filing Unchanged 5
separate
6 Additional standard deductions: single and married New
amounts
7 Standard deduction and adjustment for inflation Unchanged 7
8 Additional standard deduction of a dependent Unchanged 8
9 Itemized deductions versus standard deduction New
10 Basic and additional standard deductions Unchanged 10
11 Itemized deductions or standard deduction Unchanged 11
12 Itemized deductions or standard deduction Unchanged 12
13 Itemized deductions or standard deduction New
14 Standard deduction for resident alien Unchanged 14
15 Standard deduction requirements when married Unchanged 15
persons file separately
16 Standard deduction: year of death Unchanged 16
17 Dependent‘s standard deduction New
18 Dependent‘s standard deduction New
19 Dependent‘s standard deduction Unchanged 19
20 Dependent‘s personal exemption not allowed Unchanged 20
21 Claiming a spouse on a separate return Unchanged 21
22 Determination of marital status Unchanged 22
23 Determination of marital status Unchanged 23
24 Gross income test and scholarships Unchanged 24
25 Support test and capital expenditures Unchanged 25
26 Support test and unexpended funds of dependent Unchanged 26
27 Multiple support agreement: amount of support New
rendered by dependent
28 Divorce decree silent: custodial parent wins New
29 Relationship test for former in-laws and ex-wife Unchanged 29
3-1
,3-2 2009 Annual Edition/Test Bank
30 Relationship test: ex-sister-in-law Unchanged 30
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
31 Qualifying child: age test and full-time student Unchanged 31
status
32 Qualifying child: abode test New
33 Married child and joint return test Unchanged 33
34 Citizenship/residency test for dependents Unchanged 34
35 Citizenship/residency test for dependents Unchanged 35
36 Stealth taxes: nature of Unchanged 36
37 Tax Relief Reconciliation Act of 2001 and Unchanged 37
elimination of the phaseout of exemptions
38 Kiddie tax: earned income and support exception New
39 Kiddie tax: when not applicable New
40 Kiddie tax: how applied Unchanged 40
41 Kiddie tax: when parental election available; child Unchanged 41
may be required to file
42 Kiddie tax: unearned income requirement Unchanged 42
43 Kiddie tax: married filing jointly exception New
44 Requirements for fiscal year, timely filed return Modified 44
45 Surviving spouse status Unchanged 45
46 Surviving spouse status: year of death Unchanged 46
47 Marriage penalty: married persons filing Unchanged 47
separate returns
48 Head of household status Modified 48
49 Head of household status Modified 49
50 Abandoned spouse status: contrast married Unchanged 50
filing separate
51 Personal use losses versus personal use gains Modified 51
52 Long-term capital gain: lowest rate applicable Unchanged 52
53 Taxation of gain on collectibles Unchanged 53
54 Offsetting different-term capital losses to different Unchanged 54
term capital gains
MULTIPLE CHOICE
1 Itemized deductions Unchanged 1
2 Deductions for AGI Unchanged 2
3 AGI determination Unchanged 3
4 AGI determination New
5 AGI determination Unchanged 5
6 AGI determination New
7 Taxable income of a dependent Unchanged 7
8 Taxable income of a dependent New
9 Taxable income of a dependent Modified 9
10 Taxable income of a dependent New
11 Determination of exemptions Modified 11
12 Determination of exemptions New
13 Determination of exemptions Modified 13
, Tax Determination; Personal and Dependency Exemptions 3-3
An Overivew of Property Transactions
14 Determination of exemptions Unchanged 14
15 Definition of qualifying child Unchanged 15
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
16 Qualifying child: eligible parties Unchanged 16
17 Multiple support agreement Unchanged 17
18 Determination of exemptions New
19 Definition of a qualifying relative New
20 Exceptions to the kiddie tax New
21 Filing status for years after spouse‘s death Unchanged 21
22 Widow‘s filing status Unchanged 22
23 Filing status in selected situations Unchanged 23
24 Abandoned spouse filing status Unchanged 24
25 Filing status of nonqualifying abandoned spouse Unchanged 25
26 Loss on business and personal assets Unchanged 26
27 Taxation of different classes of capital gains Unchanged 27
28 Taxation of different classes of capital gains New
29 Capital loss limitation New
30 Netting of different-term losses and different- New
term gains
MATCHING
1-12 Characteristics of tax determination: personal and Unchanged 1-12
dependency exemptions, tax rates, filing status
13-24 Characteristics of tax determination: personal and Unchanged 13-24
dependency exemptions, tax rates, filing status
25-36 Dependency exemption categories: qualifying Unchanged 25-36
child and qualifying relative
PROBLEMS
1 Determining AGI Unchanged 1
2 Determining AGI Unchanged 2
3 Determining AGI New
4 Taxable income of a dependent New
5 Taxable income of a dependent Modified 5
6 Taxable income of a dependent New
7 Determination of exemptions Unchanged 7
8 Determination of taxable income Modified 8
9 Determination of taxable income and filing status New
10 Determination of taxable income and filing status Unchanged 10
11 Computation of capital gains and losses Unchanged 11
12 Taxation of capital gains and losses Unchanged 12
13 Taxation of capital gains and losses Unchanged 13
14 Taxation of capital gains and losses: treatment Unchanged 14
of net losses and carryover possibility
, 3-4 2009 Annual Edition/Test Bank
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
ESSAY
1 Territorial versus global systems of income taxation Unchanged 1
Compared
2 Treatment of scholarships for dependency Unchanged 2
exemption purposes
3 Exceptions to the support test for dependency Unchanged 3
exemption purposes
4 Effect of community property law on application of Unchanged 4
the gross income test to married dependents
5 Exceptions to the gross income test for qualifying Unchanged 5
child purposes
6 Qualifying child and tie-breaker rules Unchanged 6
7 Stealth tax: definition of Unchanged 7
8 Kiddie tax: exceptions to its application New
9 Filing status: comparison of the tax results of Unchanged 8
different types
10 Filing status: situations which qualify and do not Unchanged 9
qualify for head of household
11 Filing status: surviving spouse transition status Unchanged 10
12 Ramifications of the election to file a joint
Federal income tax return with a nonresident alien Unchanged 11
13 Concentrating deductions from AGI and claiming
the standard deduction in alternate years New
14 Correlation between multiple support agreement Unchanged 12
and deduction for medical expenses
CHAPTER 3
TAX DETERMINATION; PERSONAL AND DEPENDENCY EXEMPTIONS;
AN OVERVIEW OF PROPERTY TRANSACTIONS
Instructor: The test items in both the print Test Bank and ExamView test-creation software
are numbered by question type within each chapter. Thus, users of ExamView can more
easily preview their selections using the printed Test Bank in the same numbering system.
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
TRUE OR FALSE
1 Level of current income tax rates Unchanged 1
2 Definition of ―gross income‖ Unchanged 2
3 Income taxation and example of global approach Unchanged 3
4 Effect of AGI on the medical deduction Modified 4
5 Filing status: surviving spouse versus married filing Unchanged 5
separate
6 Additional standard deductions: single and married New
amounts
7 Standard deduction and adjustment for inflation Unchanged 7
8 Additional standard deduction of a dependent Unchanged 8
9 Itemized deductions versus standard deduction New
10 Basic and additional standard deductions Unchanged 10
11 Itemized deductions or standard deduction Unchanged 11
12 Itemized deductions or standard deduction Unchanged 12
13 Itemized deductions or standard deduction New
14 Standard deduction for resident alien Unchanged 14
15 Standard deduction requirements when married Unchanged 15
persons file separately
16 Standard deduction: year of death Unchanged 16
17 Dependent‘s standard deduction New
18 Dependent‘s standard deduction New
19 Dependent‘s standard deduction Unchanged 19
20 Dependent‘s personal exemption not allowed Unchanged 20
21 Claiming a spouse on a separate return Unchanged 21
22 Determination of marital status Unchanged 22
23 Determination of marital status Unchanged 23
24 Gross income test and scholarships Unchanged 24
25 Support test and capital expenditures Unchanged 25
26 Support test and unexpended funds of dependent Unchanged 26
27 Multiple support agreement: amount of support New
rendered by dependent
28 Divorce decree silent: custodial parent wins New
29 Relationship test for former in-laws and ex-wife Unchanged 29
3-1
,3-2 2009 Annual Edition/Test Bank
30 Relationship test: ex-sister-in-law Unchanged 30
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
31 Qualifying child: age test and full-time student Unchanged 31
status
32 Qualifying child: abode test New
33 Married child and joint return test Unchanged 33
34 Citizenship/residency test for dependents Unchanged 34
35 Citizenship/residency test for dependents Unchanged 35
36 Stealth taxes: nature of Unchanged 36
37 Tax Relief Reconciliation Act of 2001 and Unchanged 37
elimination of the phaseout of exemptions
38 Kiddie tax: earned income and support exception New
39 Kiddie tax: when not applicable New
40 Kiddie tax: how applied Unchanged 40
41 Kiddie tax: when parental election available; child Unchanged 41
may be required to file
42 Kiddie tax: unearned income requirement Unchanged 42
43 Kiddie tax: married filing jointly exception New
44 Requirements for fiscal year, timely filed return Modified 44
45 Surviving spouse status Unchanged 45
46 Surviving spouse status: year of death Unchanged 46
47 Marriage penalty: married persons filing Unchanged 47
separate returns
48 Head of household status Modified 48
49 Head of household status Modified 49
50 Abandoned spouse status: contrast married Unchanged 50
filing separate
51 Personal use losses versus personal use gains Modified 51
52 Long-term capital gain: lowest rate applicable Unchanged 52
53 Taxation of gain on collectibles Unchanged 53
54 Offsetting different-term capital losses to different Unchanged 54
term capital gains
MULTIPLE CHOICE
1 Itemized deductions Unchanged 1
2 Deductions for AGI Unchanged 2
3 AGI determination Unchanged 3
4 AGI determination New
5 AGI determination Unchanged 5
6 AGI determination New
7 Taxable income of a dependent Unchanged 7
8 Taxable income of a dependent New
9 Taxable income of a dependent Modified 9
10 Taxable income of a dependent New
11 Determination of exemptions Modified 11
12 Determination of exemptions New
13 Determination of exemptions Modified 13
, Tax Determination; Personal and Dependency Exemptions 3-3
An Overivew of Property Transactions
14 Determination of exemptions Unchanged 14
15 Definition of qualifying child Unchanged 15
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
16 Qualifying child: eligible parties Unchanged 16
17 Multiple support agreement Unchanged 17
18 Determination of exemptions New
19 Definition of a qualifying relative New
20 Exceptions to the kiddie tax New
21 Filing status for years after spouse‘s death Unchanged 21
22 Widow‘s filing status Unchanged 22
23 Filing status in selected situations Unchanged 23
24 Abandoned spouse filing status Unchanged 24
25 Filing status of nonqualifying abandoned spouse Unchanged 25
26 Loss on business and personal assets Unchanged 26
27 Taxation of different classes of capital gains Unchanged 27
28 Taxation of different classes of capital gains New
29 Capital loss limitation New
30 Netting of different-term losses and different- New
term gains
MATCHING
1-12 Characteristics of tax determination: personal and Unchanged 1-12
dependency exemptions, tax rates, filing status
13-24 Characteristics of tax determination: personal and Unchanged 13-24
dependency exemptions, tax rates, filing status
25-36 Dependency exemption categories: qualifying Unchanged 25-36
child and qualifying relative
PROBLEMS
1 Determining AGI Unchanged 1
2 Determining AGI Unchanged 2
3 Determining AGI New
4 Taxable income of a dependent New
5 Taxable income of a dependent Modified 5
6 Taxable income of a dependent New
7 Determination of exemptions Unchanged 7
8 Determination of taxable income Modified 8
9 Determination of taxable income and filing status New
10 Determination of taxable income and filing status Unchanged 10
11 Computation of capital gains and losses Unchanged 11
12 Taxation of capital gains and losses Unchanged 12
13 Taxation of capital gains and losses Unchanged 13
14 Taxation of capital gains and losses: treatment Unchanged 14
of net losses and carryover possibility
, 3-4 2009 Annual Edition/Test Bank
Status: Q/P
Question/ Present in
Prior
Problem Topic Edition Edition
ESSAY
1 Territorial versus global systems of income taxation Unchanged 1
Compared
2 Treatment of scholarships for dependency Unchanged 2
exemption purposes
3 Exceptions to the support test for dependency Unchanged 3
exemption purposes
4 Effect of community property law on application of Unchanged 4
the gross income test to married dependents
5 Exceptions to the gross income test for qualifying Unchanged 5
child purposes
6 Qualifying child and tie-breaker rules Unchanged 6
7 Stealth tax: definition of Unchanged 7
8 Kiddie tax: exceptions to its application New
9 Filing status: comparison of the tax results of Unchanged 8
different types
10 Filing status: situations which qualify and do not Unchanged 9
qualify for head of household
11 Filing status: surviving spouse transition status Unchanged 10
12 Ramifications of the election to file a joint
Federal income tax return with a nonresident alien Unchanged 11
13 Concentrating deductions from AGI and claiming
the standard deduction in alternate years New
14 Correlation between multiple support agreement Unchanged 12
and deduction for medical expenses
