Question

33)Rhianna purchased 1,500 shares of XYZ Corporation for $15,000. This year, XYZ Corp. declared a 10% nontaxable stock dividend, and Rhianna received 150 shares. After the dividend Rhianna's per share basis will be (rounded)

A) $6.00.

B) $7.57.

C) $9.09.

D) $10.00.

35)In addition to Social Security benefits of $10,000, Mr. and Mrs. Kuklowski have adjusted gross income of $40,000 and tax-exempt interest of $2,500. They will file a joint return. The taxable portion of their Social Security benefits will be

A) $0.

B) $4,575.

C) $7,975.

D) $10,000.

36) Husband and wife, who live in a common law state, are eligible to file a joint return for 2018, but elect to file separately. Wife has adjusted gross income of $42,000 and has $5,500 of expenditures which qualify as itemized deductions.  Husband deducts itemized deductions of $16,000. What is the taxable income for the wife?

A) $26,000

B) $30,000

C) $36,500

D) None of the above.

37)  Beata is not a key employee of DC Corporation. DC provides Beata with group term life insurance coverage of $250,000. The premiums attributable to the excess coverage are $2,500. The uniform one-month group-term premium is $1.20 per $1,000 of coverage. How much must Beata include in income?

A) $0

B) $1,980

C) $2,880

D) $3,210

40)Kinga’s employer funds child care for all employees' children. She pays nothing for this service. The cost of Kinga's child care is $5,750 a year. How much of the child care benefits are taxable to Kinga?

A) $750

B) $1,250

C) $5,000

D) $6,000

Answer 1