TEST BANK: Y
INCOME TAX FUN Y Y
DAMENTALS,38T Y
H EDITION, GERAL
Y Y
D E. WHITTENBUR
Y Y
G, MARTHA ALTU
Y Y
S-
BULLER, STEVEN
Y Y Y
GILL
,Chapter 1: The Individual Income Tax Return
Y Y Y Y Y Y
1. AY corporationY isY aY reportingY entityY butY notY aY tax-
payingY entity.Y TrueYFalse
2. PartnershipYcapitalYgainsYandYlossesYareYallocatedYseparatelyYtoYeachYofYtheYpartners.YTrueYFalse
3. MarriedYtaxpayersYmayYdoubleYtheirYstandardYdeductionYamountYbyYfilingYseparateYreturns.
TrueY False
4. AnY itemY isYnotY includedYinY grossY incomeYunlessYtheYtaxYlawYspecifiesYthatYtheY itemY isYsubjectYtoY
taxation.
TrueY False
5. ForYtaxpayersYwhoYdoYnotYitemizeYdeductions,YtheYstandardYdeductionYamountYisYsubtractedY
fromYtheYtaxpayer'sYadjustedYgrossYincome.
TrueY False
6. AYtaxpayerYwithYself-
employmentYincomeYofY$600YmustYfileYaYtaxYreturn.YTrue False
7. AY dependentY childY withY earnedY incomeY inY excessY ofY theY availableY standardY deductionY amountY
mustYfileYaYtaxYreturn.
TrueY False
8. AYsingleYtaxpayer,YwhoYisYnotYblindYandYwhoYisYunderYageY65,YwithYincomeYofY $8,750YmustYfileYaY
taxYreturn.
TrueY False
,9. IfYzaYztaxpayerYzisYzdueYzaYzrefund,YzitYzwillYzbeYzmailedYztoYztheYztaxpayerYzregardlessYzofYzwhetherYzheYzorY
zsheYzfilesYzaYztaxYzreturn.Yz
TrueYzYzFalseYz
10. TaxpayersYzwithYzself-employmentYzincomeYzofYz$400YzorYzmoreYzmustYzfileYzaYztaxYzreturn.Yz
True False
11. IfYzyourYzspouseYzdiesYzduringYztheYztaxYzyearYzandYzyouYzdoYznotYzremarry,YzyouYzmustYzfileYzasY
zsingleYzforYztheYzyearYzofYzdeath.Yz
TrueYzYzFalseYz
12. TaxpayersY zwhoY zdoY znotY zqualifyY zforY zmarried,Y zheadY zofY zhousehold,Y zorY zqualifyingY zwidowY zorY
zwidowerYzfilingYzstatusYzmustYzfileYzasYzsingle.Yz
TrueYzYzFalseYz
13. IfYzanYzunmarriedYztaxpayerYzpaidYzmoreYzthanYzhalfYztheYzcostYzofYzkeepingYzaYzhomeYzwhichYzisYztheYzp
rincipalYzplaceYzofYzresidenceYzofYzaYznephew,YzwhoYzisYznotYzherYzdependent,YzsheYzmayYzuseYztheYzheadYzo
fYzhouseholdYzfilingYzstatus.Yz
TrueYzYzFalseYz
14. TheYzmaximumYzofficialYzindividualYzincomeYztaxYzrateYzforYz2012YzisYz35Yzpercent.Yz
True False
15. AllY ztaxpayersY zmayY zuseY ztheY ztaxY zrateY zscheduleY ztoY zdetermineY ztheirY ztaxY zliability.Y
zTrueYzFalseYz
16. TheYzheadYzofYzhouseholdYztaxYzratesYzareYzhigherYzthanYztheYzratesYzforYzaYzsingleYztaxpayer.Y
zTrueYzFalseYz
17. MostYzstatesYzareYzcommunityYzpropertyYzstates.Yz
TrueY False
, 18. IfYztaxpayersYzareYzmarriedYzandYzlivingYztogetherYzatYztheYzendYzofYztheYzyear,YztheyYzmustYzfileYzaY
zjointYztaxYzreturn.Yz
TrueYzYzFalseYz
19. AY ztaxpayerY zwhoY zmaintainsY zaY zhouseholdY zwithY zanY zunmarriedY zchildY zmayY zqualifyY ztoY zfileY zasY
zheadYzofYzhouseholdYzevenYzifYztheYzchildYzisYznotYztheYztaxpayer'sYzdependent.Yz
TrueYzYzFalseYz
20. AYzmarriedYzpersonYzwithYzaYzdependentYzchildYzmayYzchooseYztoYzfileYzasYzheadYzofYzhouseholdYzifYzitY
zreducesYzhisYzorYzherYztaxYzliability.Yz
TrueYzYzFalseYz
21. AYztaxpayerYzwhoYzisYzlivingYzaloneYzandYzisYzlegallyYzseparatedYzfromYzhisYzorYzherYzspouseYzunderYzaY
zseparateYzmaintenanceYzdecreeYzatYzyear-endYzshouldYzfileYzasYzsingle.Yz
TrueYzYzFalseYz
22. AnYzindividual,YzageYz22,YzenrolledYzonYzaYzfull-
timeYzbasisYzatYzaYztradeYzschool,YzisYzconsideredYzaYzstudentYzforYzpurposesYzofYzdeterminingYzwhetherY
zaYzdependencyYzexemptionYzisYzpermitted.YzTrueYzFalseYz
23. AY zdependencyY zexemptionY zmayY zbeY zclaimedY zbyY ztheY zsupportingY ztaxpayerY zinY ztheY zyearY zofY
zdeathYzofYzaYzdependent.Yz
TrueYzYzFalseYz
24. ForYz2012,YzpersonalYzandYzdependencyYzexemptionsYzareYz$3,800Yzeach.Yz
True False
25. zScholarshipsYzreceivedYzbyYzaYzstudentYzmayYzbeYzexcludedYzforYzpurposesYzofYztheYzsupportYztestYzforY
zdeterminingYztheYzavailabilityYzofYztheYzdependencyYzexemption.
True False
INCOME TAX FUN Y Y
DAMENTALS,38T Y
H EDITION, GERAL
Y Y
D E. WHITTENBUR
Y Y
G, MARTHA ALTU
Y Y
S-
BULLER, STEVEN
Y Y Y
GILL
,Chapter 1: The Individual Income Tax Return
Y Y Y Y Y Y
1. AY corporationY isY aY reportingY entityY butY notY aY tax-
payingY entity.Y TrueYFalse
2. PartnershipYcapitalYgainsYandYlossesYareYallocatedYseparatelyYtoYeachYofYtheYpartners.YTrueYFalse
3. MarriedYtaxpayersYmayYdoubleYtheirYstandardYdeductionYamountYbyYfilingYseparateYreturns.
TrueY False
4. AnY itemY isYnotY includedYinY grossY incomeYunlessYtheYtaxYlawYspecifiesYthatYtheY itemY isYsubjectYtoY
taxation.
TrueY False
5. ForYtaxpayersYwhoYdoYnotYitemizeYdeductions,YtheYstandardYdeductionYamountYisYsubtractedY
fromYtheYtaxpayer'sYadjustedYgrossYincome.
TrueY False
6. AYtaxpayerYwithYself-
employmentYincomeYofY$600YmustYfileYaYtaxYreturn.YTrue False
7. AY dependentY childY withY earnedY incomeY inY excessY ofY theY availableY standardY deductionY amountY
mustYfileYaYtaxYreturn.
TrueY False
8. AYsingleYtaxpayer,YwhoYisYnotYblindYandYwhoYisYunderYageY65,YwithYincomeYofY $8,750YmustYfileYaY
taxYreturn.
TrueY False
,9. IfYzaYztaxpayerYzisYzdueYzaYzrefund,YzitYzwillYzbeYzmailedYztoYztheYztaxpayerYzregardlessYzofYzwhetherYzheYzorY
zsheYzfilesYzaYztaxYzreturn.Yz
TrueYzYzFalseYz
10. TaxpayersYzwithYzself-employmentYzincomeYzofYz$400YzorYzmoreYzmustYzfileYzaYztaxYzreturn.Yz
True False
11. IfYzyourYzspouseYzdiesYzduringYztheYztaxYzyearYzandYzyouYzdoYznotYzremarry,YzyouYzmustYzfileYzasY
zsingleYzforYztheYzyearYzofYzdeath.Yz
TrueYzYzFalseYz
12. TaxpayersY zwhoY zdoY znotY zqualifyY zforY zmarried,Y zheadY zofY zhousehold,Y zorY zqualifyingY zwidowY zorY
zwidowerYzfilingYzstatusYzmustYzfileYzasYzsingle.Yz
TrueYzYzFalseYz
13. IfYzanYzunmarriedYztaxpayerYzpaidYzmoreYzthanYzhalfYztheYzcostYzofYzkeepingYzaYzhomeYzwhichYzisYztheYzp
rincipalYzplaceYzofYzresidenceYzofYzaYznephew,YzwhoYzisYznotYzherYzdependent,YzsheYzmayYzuseYztheYzheadYzo
fYzhouseholdYzfilingYzstatus.Yz
TrueYzYzFalseYz
14. TheYzmaximumYzofficialYzindividualYzincomeYztaxYzrateYzforYz2012YzisYz35Yzpercent.Yz
True False
15. AllY ztaxpayersY zmayY zuseY ztheY ztaxY zrateY zscheduleY ztoY zdetermineY ztheirY ztaxY zliability.Y
zTrueYzFalseYz
16. TheYzheadYzofYzhouseholdYztaxYzratesYzareYzhigherYzthanYztheYzratesYzforYzaYzsingleYztaxpayer.Y
zTrueYzFalseYz
17. MostYzstatesYzareYzcommunityYzpropertyYzstates.Yz
TrueY False
, 18. IfYztaxpayersYzareYzmarriedYzandYzlivingYztogetherYzatYztheYzendYzofYztheYzyear,YztheyYzmustYzfileYzaY
zjointYztaxYzreturn.Yz
TrueYzYzFalseYz
19. AY ztaxpayerY zwhoY zmaintainsY zaY zhouseholdY zwithY zanY zunmarriedY zchildY zmayY zqualifyY ztoY zfileY zasY
zheadYzofYzhouseholdYzevenYzifYztheYzchildYzisYznotYztheYztaxpayer'sYzdependent.Yz
TrueYzYzFalseYz
20. AYzmarriedYzpersonYzwithYzaYzdependentYzchildYzmayYzchooseYztoYzfileYzasYzheadYzofYzhouseholdYzifYzitY
zreducesYzhisYzorYzherYztaxYzliability.Yz
TrueYzYzFalseYz
21. AYztaxpayerYzwhoYzisYzlivingYzaloneYzandYzisYzlegallyYzseparatedYzfromYzhisYzorYzherYzspouseYzunderYzaY
zseparateYzmaintenanceYzdecreeYzatYzyear-endYzshouldYzfileYzasYzsingle.Yz
TrueYzYzFalseYz
22. AnYzindividual,YzageYz22,YzenrolledYzonYzaYzfull-
timeYzbasisYzatYzaYztradeYzschool,YzisYzconsideredYzaYzstudentYzforYzpurposesYzofYzdeterminingYzwhetherY
zaYzdependencyYzexemptionYzisYzpermitted.YzTrueYzFalseYz
23. AY zdependencyY zexemptionY zmayY zbeY zclaimedY zbyY ztheY zsupportingY ztaxpayerY zinY ztheY zyearY zofY
zdeathYzofYzaYzdependent.Yz
TrueYzYzFalseYz
24. ForYz2012,YzpersonalYzandYzdependencyYzexemptionsYzareYz$3,800Yzeach.Yz
True False
25. zScholarshipsYzreceivedYzbyYzaYzstudentYzmayYzbeYzexcludedYzforYzpurposesYzofYztheYzsupportYztestYzforY
zdeterminingYztheYzavailabilityYzofYztheYzdependencyYzexemption.
True False
