Questions from General Taxation

Q: The basis of the property received as a dividend by a shareholder

The basis of the property received as a dividend by a shareholder of a corporation is a. The book value at the date of distribution. b. The original cost at the date of purchase. c. The accounting va...

Q: When an individual’s marginal ordinary income tax rate is 25%, the

When an individual’s marginal ordinary income tax rate is 25%, the tax rate on qualified dividends is a. 0%. b. 15%. c. 25%. d. 5%.

Q: Graciela, who is single, reported itemized deductions of $6

Graciela, who is single, reported itemized deductions of $6,400 on her 2016 tax return. Her itemized deductions included $200 of state taxes paid. In 22017, she received a $150 refund of state taxes...

Q: Provisional income is calculated by starting with Adjusted Gross Income (AGI

Provisional income is calculated by starting with Adjusted Gross Income (AGI) before social security benefits and adding back specific items. One of these items is a. Employer-provided adoption bene...

Q: Frank, who is single, received $7,000 of

Frank, who is single, received $7,000 of social security benefits. His AGI before the social security benefits was $15,000. He also had $100 of tax-exempt interest. What is the amount of taxable so...

Q: Items that must be reported on line 21 (other income)

Items that must be reported on line 21 (other income) of Form 1040 include. a. Dividend income. b. Capital gains. c. Interest income. d. Jury duty pay.

Q: Which of the following fringe benefits provided by the employer is not

Which of the following fringe benefits provided by the employer is not taxable to the employee? a. Sick pay. b. Vacation pay. c. Bonus. d. 10% discount on products sold by the business; the gross pro...

Q: Payments to employees under written dependent care assistance plans are tax-

Payments to employees under written dependent care assistance plans are tax-free. The exclusion cannot exceed the earned income of the lesser earning spouse and cannot exceed ________ for an individu...

Q: Employers can pay (or reimburse) employees for up to _________

Employers can pay (or reimburse) employees for up to _________ per year of educational assistance, whether or not the education is job-related. a. $5,250. b. $5,150. c. $5,000. d. $2,500.

Q: An example of nontaxable income is a. Wages.

An example of nontaxable income is a. Wages. b. Dividend income. c. Alimony payment. d. Child support payment.