Reg

Front 1

For the head of household filing status, which of the following costs are considered in determining whether the taxpayer has contributed more than one-half the cost of maintaining the household?

Food Consumed in the Home | Values of Services Rendered in the Home by the Taxpayer

Back 1

Yes | No

Front 2

Jim and Kay Ross

Back 2

3

Front 3

Shifty (Easy)

Back 3

Shifty has $5,000 of income when Easy cancels the debt

Front 4

Barkley

Back 4

$0

Front 5

Anthony and Cleopatra

Back 5

$0

Front 6

Gail Judd

Back 6

$800

Front 7

01 In which of the following situations may taxpayers file as married filing jointly?

Back 7

Taxpayers who were married but lived apart during the year

Front 8

Chrisp

Back 8

Chrisp received a dividend check on January 4 of the following year. The dividends were declared payable on December 30 of the current year.

Front 9

Easel Co.

Back 9

$4,800

Front 10

Cassidy

Back 10

$40,000

Front 11

Willie Coconut

Back 11

$12,500

Front 12

02 A husband and wife can file a joint return even if

Back 12

The spouses have different accounting methods

Front 13

Joe and Barb

Back 13

Barb has no gross income and was not claimed as another person's dependent in Year 1

Front 14

Smith

Back 14

2

Front 15

Kareem

Back 15

$12,000

Front 16

Pedals Company

Back 16

$0

Front 17

03 The fringe benefit that must be included in wages and reports on Form W-2 is

Back 17

Group-term life insurance coverage in excess of $50,000

Front 18

Emil Gow

Back 18

$400

Front 19

Gary Judd

Back 19

A $4,000 deduction for bad debts and does not have to include any portion of the "reserve" in taxable income

Front 20

04 Which of the following fringe benefits is NOT excludable from an employee's wages?

Back 20

$2,500 of group term life insurance covering the death of an employee's spouse or dependant

Front 21

Recasto

Back 21

Utilities and maintenance on the property must be divided between personal and rental use

Front 22

05 The gross receipts from which of the following activities would not qualify as domestic production gross receipts (DPGR)?

Back 22

Receipts from an architectural consultation by the taxpayer in Austin, TX, about the construction of a building in Mexico.

Front 23

Hall

Back 23

Not deductible

Front 24

Jim and Kay Ross

Back 24

3

Front 25

Which of the following requirements must be met in order for a single individual to qualify for an additional standard deduction?

Must Be Age 65 or Older or Bling | Must Support Dependent Child or Aged Parent

Back 25

Yes | No

Front 26

06 For regular tax purposes, with regard to the itemized deduction for qualified residence interest, home equity indebtedness incurred

Back 26

Is limited to $100,000 on a joint income tax return

Front 27

Matthews

Back 27

$1,900

Front 28

07 Charitable contributions subject to the 50% limit that are NOT fully deductible in the year made may be

Back 28

Carried forward 5 years

Front 29

Wilson, CPA

I.
II.

Back 29

I only

Front 30

Robert Moore

Back 30

Head of household and two exemptions

Front 31

Cole

Back 31

$20,000

Front 32

Jerry (Jackson)

Back 32

$100 long-term capital loss

Front 33

An individual had the following capital gains and losses for the year [...] What will be the net gain(loss) reported by the individuals and at what applicable tax rate(s)?

Back 33

Long-term gain of $16,000 at the 15%

Front 34

08 A heavy equipment dealer would like to trade some business assets in a nontaxable exchange. Which of the following exchanges would qualify as nontaxable?

Back 34

A corporate office building for a vacant lot

Front 35

Donald Anderson

Back 35

$25,000

Front 36

Dunn

Back 36

$0

Front 37

Gar (Pat)

Back 37

No gain or loss

Front 38

Mr. Apple and Ms. Melon

Back 38

$435,000

Front 39

09 In which one of the following business situations do the uniform capitalization rules for capitalizing direct and indirect cost of production or resale NOT apply?

Back 39

Sell office supplies purchased wholesale; average annual gross receipts $10 million or less

Front 40

Abby

Long-Term (15% Basket) | Long-Term (28% Basket) | Short-Term (35% Basket)

Back 40

$700 | $0 | $700

Front 41

Mr. Macabee

Back 41

$11,000 ordinary income and $5,000 Sec. 1231 gain

Front 42

Mr. Smart

Back 42

Long-term capital gain

Front 43

Four years ago

Back 43

$7,000

Front 44

Gwen

Back 44

$67,000

Front 45

Bartley Corporation

Back 45

$13,500

Front 46

Cero Corp

Back 46

$405,000

Front 47

10 Ignoring any allowable bonus depreciation, which of the following is a correct statement concerning depreciation of automobiles placed in service in 2012?

Back 47

The amount of depreciation and Sec. 179 expense is limited to $3,160 in the first year

Front 48

Maple Corporation

Back 48

$100,000

Front 49

11 In the case of a corporation that is NOT a financial institution, which of the following statements is true with regard to the deduction for bad debts?

Back 49

A corporation is required to use the direct charge-off method rather than the reserve method

Front 50

Marvel Corporation

Back 50

$26,000

Front 51

ABC Corporation

Back 51

$19,400

Front 52

Corporation D

Back 52

$9,250

Front 53

Cable Corp

Back 53

$86,000

Front 54

Ashley Corporation

Back 54

$800

Front 55

Danny

Back 55

Mid-quarter for all assets except the warehouse building, which uses the mid-month

Front 56

Leigh

Back 56

$200

Front 57

12 All of the following items can be amortized as a qualified organizational expenses EXCEPT

Back 57

Expense for issuance or sale of stock

Front 58

Sam

Back 58

$3,160

Front 59

Fast, Inc.

Back 59

15 years

Front 60

Orange Corporation

Back 60

$295,000

Front 61

Rela Associates

Back 61

No gain or loss on the transfer of its assets nor on the assumption of its liabilities by the corporation

Front 62

Lincoln Corp.

I.
II.

Back 62

II only

Front 63

Kee Corp.

Back 63

$10,000

Front 64

13 Which of the following is NOT taken into account when determining if a gain or loss should be recognized on the transfer of property to a corporation in exchange for a controlling interest in stock of the corporation?

Back 64

Fair market value of property transferred

Front 65

Anna (Elm)

Back 65

$6,000

Front 66

Quigley | Roberk | Storm

Back 66

$25,000 | $90,000 | $0

Front 67

14 A distribution of stock or stock rights is generally considered a taxable dividend unless it is which of the following?

Back 67

Proportionate distribution

Front 68

Rose Corporation

Back 68

The part of the distribution which is taxable is $12,500

Front 69

A calendar-year corporation received an automatic extension of time for filing its Year 1 return by submitting an application on Form 7004. On what date is the corporation's return due?

Back 69

September 15, Year 2

Front 70

Unless the Internal Revenue Service consents to a change of method, the accrual method of tax reporting is mandatory for a sole proprietor when there are

Accounts Receivable for Services Rendered | Year-End Merchandise Inventories

Back 70

No | Yes

Front 71

Ace Rentals

Back 71

$65,000

Front 72

Stewart Corp.

Back 72

The $1,000 difference is includible in Stewart's Year 2 income tax return

Front 73

Mel

Back 73

$4,125

Front 74

15 Which one of the following will result in an accruable expense for an accrual-basis taxpayer?

Back 74

A repair completed prior to year end but not invoiced

Front 75

In Year 1, a taxpayer sold real property for $200,000, receiving $100,000 at closing and $100,000 plus accrued interest at the prime rate in the next year. [...] If this transaction qualifies for installment sale treatment, what is the gross profit on the sale?

Back 75

$165,000