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1. A few years ago Majid and Marjorie formed a partnership called “M&M.” Which of the following is TRUE regarding the U.S. income taxation of Majid, Marjorie and M&M?
1.The M&M entity must pay income taxes
2. The M&M entity is not required to file an informational tax return
3. Majid and Marjorie must pay taxes on their respective shares of M&M’s income
4. (even if M&M does not distribute its earnings during the year)
None of the above
2. On January 1, 2012, Kerly signed a SIX year lease to rent office space from Nehemiah. The lease commenced immediately on January 1, 2012. During 2012, Kerly will pay Nehemiah, $36,000 for the first year’s rent, $3,000 for the last month’s rent, and $3,000 as a security deposit. Kerly and Nehemiah agree that the security deposit will NOT be returned by Nehemiah at the end of the lease. How much gross income should Nehemiah report for 2012 as a result of these items?
1. $42,000
2. $39,000
3. $36,000
4. $6,000
3. What is Kristopher’s taxable income for 2012? Assume Kristopher is single and has no dependents. Assume further that Kristopher’s 2012 AGI is $50,000 and that he had itemized deductions of $2,000.
1. $50,000
2. $48,000
3. $44,200
4. $40,250
4. Brian, a single taxpayer, will have 2012 wages of $70,000. What is Brian’s AGI if he has the following (and only the following) additional items in 2012?
Itemized deductions of $12,000
Exemption amount of $3,800
Alimony of $12,000 paid by Brian (to his former spouse, Bedita) Business income of $6,000 from Brian’s sole proprietorship Ignore any deduction that may relate to self-employment taxes.
1.$76,000
2.$70,000
3.$64,000
4.$48,200
1. Lawrence and Ligia, ages 29 and 28, are married and file a joint return. In addition to having TWO dependent children (Lindsey and Leonard), Lawrence and Ligia have adjusted gross income (“AGI”) of $100,000 and itemized deductions of $20,000. What is their taxable income for 2012?
A. $100,000
B. $80,000
C. $72,400
D. $64,800
2. In 2012, Donald, age 16, has $200 of interest from a certificate of deposit and $2,700 from performing landscaping services. Assume Donald is claimed by his parents as a dependent. What is Donald’s standard deduction for 2012?
A. $950
B. $2,700
C. $3,000
D. $5,950
3. What is Caroline’s taxable income for 2012? Assume she is single and claimed TWO dependent children, Heidi and Nhi. Assume further that Caroline’s AGI is $60,000 and that her itemized deductions are $15,000.
A. $60,000
B. $45,000
C. $37,400
D. $33,600
4. What is Tara’s Taxable Income for 2012? Assume she is single and has no dependents. Assume further that Tara’s AGI is $125,000 and that her itemized deductions are $3,000.
A. $115,250
B. $118,200
C. $120,00
D. $125,000
1. Assume the same facts as in the previous question (again, ignore any deduction that may relate to self-employment taxes). Brian’s Taxable Income for 2012 is:
1.$76,000
2.$70,000
3.$64,000
4.$48,200
2. Descartes and John are married taxpayers who file a joint return. In 2009, they had AGI of $600,000 and their preliminary itemized deductions totaled $40,000. In 2011, they also had AGI of $600,000 and preliminary itemized deductions of $40,000. Which of the following is TRUE?
1.When comparing their 2009 and 2011 returns, they were able to actually deduct more itemized deductions on their 2011 return
2.When comparing their 2009 and 2011 returns, they were able to actually deduct more itemized deductions on their 2009 return
3.When comparing their 2009 and 2011 returns, they were able to actually deduct the same amount of itemized deductions on each return
4.They were not able to actually deduct any itemized deductions on either their 2009 return or their 2011 return
3. In early 2012, Theresa received a gift of a home valued at $500,000 (from Theresa’s mother, Leslie). Leslie also gave Theresa a $10,000 cash gift. During 2012, Theresa rented the home to Patricia. As a result of the lease with Patricia, Theresa will earn net rental income of $20,000 (for 2012). What amount of income should Theresa’s 2012 tax return include from these transactions?
1.$530,000
2.$30,000
3.$20,000
4.$0
4. In 2012, Sheree, a calendar-year taxpayer, purchased business equipment (5-year property) for $900,000. The property was placed in service during 2012 (and is being used exclusively in Sheree’s extremely profitable business). No other personal property is purchased by Sheree in 2012. What is the most that Sheree may deduct in 2012 under Section 179 of the Code (ignore any potential deductions resulting from bonus deprecation or MACRS)?
1.$900,000
2.$560,000
3.$139,000
4.$0
1. Ethnographic research is aimed at understanding
A. the development of cohorts.
B. relationships between early experiences and later behavior.
C. children’s mastery of a new skill.
D. the cultural meanings of behavior.
2. In studies involving children, the _______ should have the final word in deciding whether they should participate.
A. children
B. therapists
C. researchers
D. parents
3. Vygotsky’s theory neglected
A. cultural influences on cognitive development.
B. the importance of language development.
C. the biological side of development.
D. the changing nature of cognition.
4. Bandura is unique among learning theorists because he
A. focused on cultural influences on children’s learning.
B. granted children an active role in their own learning.
C. emphasized the role of the unconscious on children’s learning.
D. believed that children’s learning depends on rein forcers.
1. Assume the same facts as in the previous question. However, for this question, assume that Sheree purchased the business equipment for $300,000 (instead of $900,000). What is the most that may be deducted in 2012 under Section 179 of the Code (ignore any potential deductions resulting from bonus deprecation or MACRS)?
1.$560,000
2.$300,000
3.$139,000
4.$0
2. Cody has AGI of $100,000 in 2012. During 2012, Cody also had an uninsured personal casualty loss of $15,000 (after the $100 reduction). The personal casualty loss related to an accident that Cody had with Chervaughn. Cody carried no collision insurance and Chervaughn was also an uninsured motorist. Assume Cody itemizes deductions in 2012. What is the casualty loss amount that Cody may actually deduct on his return?
1.$15,000
2.$10,000
3.$5,000
4.$0
3. Refer to the facts in the previous question. However, for purposes of this question assume that Cody takes the standard deduction in 2012. What is the casualty loss amount that Cody may actually deduct on his return?
1.$15,000
2.$10,000
3.$5,000
4.$0
4. TXX5761 Inc. paid all of the premiums for a $400,000 group-term life insurance policy on its 66-year-old President, Deenice. Assume that pursuant to the applicable table, the cost per $1,000 of protection for a 1-month period is $1.27 (for a person aged 65 to 69). What amount relating to the policy (if any) must be included in Deenice’s Gross Income for the year (assume Deenice was covered for all twelve months)?
1.$0
2.$5,334
3.$350,000
4.$400,000
