Question

6. Nomi is in the highest individual tax bracket and receives qualified dividends from Omega Corp. Nomi's tax liability (not including any net investment income tax) with respect to these dividends is:

a. $ 0

b. $ 277.20

c. $ 100.00

d. $ 75.00

e. $ 50.00

7. Rebecca, a single taxpayer, owners a Series I U.S.. Savings Bond that increased in value by $ 46 during the year. She makes special election. How much income must Rebecca recognize this year?

a. $ 0

b. $ 46

c. $ 23

d. $ 0 if in first 5 years or $ 46 thereafter

16 Which of the following gifts would probably be held to be taxable to the person receiving the gift?

a. One thousand dollars given to a taxpayer by his or her father

b. An acre of land given to a taxpayer by a friend

c A car given to a loyal employee by her supervisor when she retired to recognize her faithful service

d. A Mercedes-Benz given to a taxpayer by his cousin

e. An interest in a partnership given to a taxpayer by his or her uncle

18, Kelly receives a $ 40,000 scholarship to vy University. She uses $ 30,000 on tuition and books, $ 5,000 for a used car, and $ 5,000 for rent while at school. Kelly will recognize .........gross income.

a. $0

b. $ 5,000

c. $ 10,000

d. $ 30,000

e. $ 40,000

22. Alicia loses her job part way through 2017. Her employer pays her wages of $ 15,450 up through her date of termination. After that, she received $ 3,400 of unemployment compensation from the state until she gets a new job for which she paid profits of $ 3,000 through year end. Based on this information, Alicia's gross income for 2017 is:

a. $0

b. $ 3,000

c. $ 6,400

d. $ 18,450

e. $ 21,850

24. Which of the following will result in the recognition of gross income:

a. Gail's employer allows her to set aside $ 4,000 from her wages to cover the cost of daycare for Gail's four-year old daughter. Gail's daycare costs are $ 4, 300 for the year,

b. Hannah buys a new sofa from her employer, Sofas - R - Us, for $ 1, 200. The cost | of the sofa to the furniture store is $ 1, 100 and the sofa normally sells for $ 1, 700,

c. Jayden's employer purchases her commuting passage for the subway at a cost of $ 225 per month.

d. Havana is a lawyer, The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys.

e, None of the above will result in recognition of gross income.

Answer 1

Answer 6: C

rate would be 20% applicable on dividned.since in question dividend amount is not given ..please multiply dividend amount with 20 % rate then you will get the answer. example if dividend is 500 then tax=500*20%=100

Answer 7:

option A=0

taxable only when the bond is redeemed and interest is paid.

Answer 16:

Option C

Gift received from relatives is fully exempted from the levy of tax and no income tax would be levied on such gifts.

Answer 18:

Option C =10,000

Answer 22:

Option E=21850

Answer 24:

Option A

upto one child day care expense that can be set aside is 3000 if more than one child than 6000.in this case as it is more than 3000 .excess is included in gross income