UGBA 135 Question and Answers || Verified and
approved
Which of the following is not a reason for an IRS audit?( Answers marked as *) A. Low
credit scores (*)
B. Failure to sign a tax return
C. Mathematical errors
D. Not reporting all taxable income
Employers withhold from employees' paychecks the following items except( Answers
marked as *) A. Federal income taxes
B. Social Security
C. Income from a sole proprietorship (*)
D. Medicare
Unearned income includes all the following except( Answers marked as *) A.Capital
losses(*)
B.Capital gains
C.Dividends
D. Interest
Earned income includes all the following except( Answers marked as *) A.Commissions
B.Wages
C.Salaries
D.Insurance proceeds (*)
In a partnership the general partner:( Answers marked as *) Has unlimited liability
Which form will your employer require you to complete upon hiring?( Answers marked
as *) W-4
Which of the following is not eligible for a 20% pass-through tax deduction?( Answers
marked as *) A. C-corporation (*)
B.Limited liability corp. (LLC)
C.Proprietorship
, D.Partnership
Which of the following sources of income is not taxable?( Answers marked as *) A.Tips
B.Commissions
C.Bonuses
D. Child Support (*)
Qualified stock dividends are taxed at a maximum rate of( Answers marked as *) 20%
Profits from partnerships are taxes as:( Answers marked as *) A maximum 20%
Interest income is taxed the same as:( Answers marked as *) Ordinary income
Short term capital gains are taxed as:( Answers marked as *) Ordinary Income
Long term capital gains are taxed at a maximum rate of( Answers marked as *) 20%
Losses in excess of gains in any one year can be used to reduce taxable income up
to( Answers marked as *) $3,000
Adjusted Gross Income ("AGI") is what you get after subtracting from total income,
specific deductions except one of the following( Answers marked as *) A. Contributions
paid into a retirement plan
B. Tuition and fees deduction
C. Charitable deductions (*)
D. Student loan interest
If you have $14,000 of short term capital gains, and $7,500 of short term capital losses
in the same year, how much will be taxable to you?( Answers marked as *) $6,500
The wash sale rule is designed to( Answers marked as *) Disallow certain losses in the
trading of securities
If you buy 200 shares of stock in a taxable account for $22,500 on October 1st, sell
them for $18,000 on October 12th, and buy back 200 shares of the same stock on
October 28th for $19,000, what would be your reportable tax loss?( Answers marked as
*) A. $2,500
B. $3,500
C. $4,500
D. None of the above (*)
Stock options are granted by:( Answers marked as *) Board of Directors
Common tax credits( Answers marked as *) Are worth more than tax deductions
approved
Which of the following is not a reason for an IRS audit?( Answers marked as *) A. Low
credit scores (*)
B. Failure to sign a tax return
C. Mathematical errors
D. Not reporting all taxable income
Employers withhold from employees' paychecks the following items except( Answers
marked as *) A. Federal income taxes
B. Social Security
C. Income from a sole proprietorship (*)
D. Medicare
Unearned income includes all the following except( Answers marked as *) A.Capital
losses(*)
B.Capital gains
C.Dividends
D. Interest
Earned income includes all the following except( Answers marked as *) A.Commissions
B.Wages
C.Salaries
D.Insurance proceeds (*)
In a partnership the general partner:( Answers marked as *) Has unlimited liability
Which form will your employer require you to complete upon hiring?( Answers marked
as *) W-4
Which of the following is not eligible for a 20% pass-through tax deduction?( Answers
marked as *) A. C-corporation (*)
B.Limited liability corp. (LLC)
C.Proprietorship
, D.Partnership
Which of the following sources of income is not taxable?( Answers marked as *) A.Tips
B.Commissions
C.Bonuses
D. Child Support (*)
Qualified stock dividends are taxed at a maximum rate of( Answers marked as *) 20%
Profits from partnerships are taxes as:( Answers marked as *) A maximum 20%
Interest income is taxed the same as:( Answers marked as *) Ordinary income
Short term capital gains are taxed as:( Answers marked as *) Ordinary Income
Long term capital gains are taxed at a maximum rate of( Answers marked as *) 20%
Losses in excess of gains in any one year can be used to reduce taxable income up
to( Answers marked as *) $3,000
Adjusted Gross Income ("AGI") is what you get after subtracting from total income,
specific deductions except one of the following( Answers marked as *) A. Contributions
paid into a retirement plan
B. Tuition and fees deduction
C. Charitable deductions (*)
D. Student loan interest
If you have $14,000 of short term capital gains, and $7,500 of short term capital losses
in the same year, how much will be taxable to you?( Answers marked as *) $6,500
The wash sale rule is designed to( Answers marked as *) Disallow certain losses in the
trading of securities
If you buy 200 shares of stock in a taxable account for $22,500 on October 1st, sell
them for $18,000 on October 12th, and buy back 200 shares of the same stock on
October 28th for $19,000, what would be your reportable tax loss?( Answers marked as
*) A. $2,500
B. $3,500
C. $4,500
D. None of the above (*)
Stock options are granted by:( Answers marked as *) Board of Directors
Common tax credits( Answers marked as *) Are worth more than tax deductions
