Questions from General Taxation


Q: For each of the following situations, indicate the amount of the

For each of the following situations, indicate the amount of the penalty that could be imposed on the tax return preparer: a. A tax return preparer understates the taxpayer’s tax liability with a friv...

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Q: Indicate whether the following statements are true or false: ______

Indicate whether the following statements are true or false: ______Decreasing one’s tax liability through legal methods is called tax avoidance, while illegally reducing taxes is called tax evasion. _...

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Q: 1. E Corporation is a subchapter S corporation owned by three

1. E Corporation is a subchapter S corporation owned by three individuals with calendar year-ends. The corporation sells a sports drink as its principal product and has similar sales each month. What...

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Q: 1. Assume that a taxpayer purchases a computer in 2016 that

1. Assume that a taxpayer purchases a computer in 2016 that has an estimated useful life of 10 years. If the computer is used 100 percent for business and no election to expense was made, what is the...

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Q: 1. Kevin purchased a house 20 years ago for $100

1. Kevin purchased a house 20 years ago for $100,000 and he has always lived in the house. Three years ago Kevin married Karen, and she has lived in the house since their marriage. If they sell Kevin’...

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Q: 1. All of the following assets are capital assets, except

1. All of the following assets are capital assets, except: a. A personal automobile b. IBM stock c. A child’s bicycle d. Personal furniture e. Used car inventory held by a car dealer 2. Which of the...

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Q: 1. In 2016, Mary sells for $14,000

1. In 2016, Mary sells for $14,000 a machine used in her business. The property was purchased on May 1, 2014, at a cost of $13,000. Mary has claimed depreciation on the machine of $8,000. What is the...

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Q: 1. Which of the following amounts paid by an employer to

1. Which of the following amounts paid by an employer to an employee is not subject to withholding? a. Salary b. Bonus c. Commissions d. Reimbursement of expenses under an accountable plan e. All of t...

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Q: 1. Bob employs a maid to clean his house. He

1. Bob employs a maid to clean his house. He pays her $1,040 during the current year. What is the proper tax treatment of the Social Security and Medicare tax for the maid? a. Bob is not required to p...

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