Question 1

Terri owns a 50 percent interest in the TT Partnership.At the beginning of the year,her basis in her partnership interest was $75,000.The partnership reports a $40,000 loss for the year and distributes $4,000 cash to Terri.What is her basis in her partnership interest at the end of the year?

Accepted Answer

A)  $111,000
B)  $75,000
C)  $51,000
D)  $31,000

Question 2

_____ 16.Adam Smith's four canons of taxation are Equity,Certainty,Economy and Convenience.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is never included in gross income?

Accepted Answer

A)  Loss on stock sale
B)  Social security benefits
C)  Unemployment benefits
D)  Gifts

Question 4

Which of the following best describes horizontal equity?

Accepted Answer

A)  All taxpayers should pay some taxes on their incomes
B)  As income increases,taxes should increase
C)  Persons with equal incomes should pay the same amount of taxes
D)  A person with capital gains should pay less tax than a person with the same amount of salary income

Question 5

Which of the following is not a tax credit allowed a corporation?

Accepted Answer

A)  Foreign tax credit
B)  Education credit
C)  Investment tax credit
D)  Orphan drug credit

Question 6

Which of the following business entities has no provision that limits some or all of the liability of the owner?

Accepted Answer

A)  C Corporation
B)  Sole Proprietorship
C)  S Corporation
D)  Limited Liability Company

Question 7

_____ 4.All interest paid to a taxpayer must be included in gross income.

Accepted Answer

A) True 
 B)False

Question 8

Hoku Corporation (a C corporation) had the following history of income and loss:  How much of a tax refund can Hoku Corporation receive by carrying back its 2013 loss?

Accepted Answer

A)  $1,500
B)  $2,500
C)  $3,500
D)  None;it cannot carry its loss back

Question 9

_____ 8.The alternative minimum tax is a tax determined on a broadened definition of income with no deductions permitted.

Accepted Answer

A) True 
 B)False

Question 10

_____ 5.A taxpayer's filing status determines the basic standard deduction allowed.

Accepted Answer

A) True 
 B)False

Question 11

Which of these entities is taxed directly on its income?

Accepted Answer

A)  Limited Liability Company
B)  C Corporation
C)  Partnership
D)  Sole Proprietorship

Question 12

_____ 13.The person giving the gift pays the gift tax.

Accepted Answer

A) True 
 B)False

Question 13

_____ 2.The first codification of the Internal Revenue Code took place in 1954.

Accepted Answer

A) True 
 B)False

Question 14

_____ 1.The 16th Amendment to the US Constitution that provided for an income tax was ratified in 1913.

Accepted Answer

A) True 
 B)False

Question 15

When was the last time the Internal Revenue Code was recodified?

Accepted Answer

A)  1913
B)  1939
C)  1954
D)  1986

Question 16

Which of the following is not a characteristic of an S corporation?

Accepted Answer

A)  Owners have limited liability
B)  The corporation is taxed directly on operating income
C)  The corporation can have no more than 100 shareholders
D)  Shareholders must consent to the S election by the corporation

Exam 1: Introduction to Taxation

_____ 4.All interest paid to a taxpayer must be included in gross income.

Correct Answer
verified

_____ 5.A taxpayer's filing status determines the basic standard deduction allowed.

Correct Answer
verified

Hoku Corporation (a C corporation) had the following history of income and loss: How much of a tax refund can Hoku Corporation receive by carrying back its 2013 loss?

Correct Answer
verified

Which of these entities is taxed directly on its income?

Correct Answer
verified

_____ 1.The 16^th Amendment to the US Constitution that provided for an income tax was ratified in 1913.

Correct Answer
verified

Which of the following is never included in gross income?

Correct Answer
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_____ 16.Adam Smith's four canons of taxation are Equity,Certainty,Economy and Convenience.

Correct Answer
verified

_____ 13.The person giving the gift pays the gift tax.

Correct Answer
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Which of the following is not a tax credit allowed a corporation?

Correct Answer
verified

Which of the following is not a characteristic of an S corporation?

Correct Answer
verified

Which of the following best describes horizontal equity?

Correct Answer
verified

_____ 2.The first codification of the Internal Revenue Code took place in 1954.

Correct Answer
verified

When was the last time the Internal Revenue Code was recodified?

Correct Answer
verified

Terri owns a 50 percent interest in the TT Partnership.At the beginning of the year,her basis in her partnership interest was $75,000.The partnership reports a $40,000 loss for the year and distributes $4,000 cash to Terri.What is her basis in her partnership interest at the end of the year?

Correct Answer
verified

Which of the following business entities has no provision that limits some or all of the liability of the owner?

Correct Answer
verified

_____ 8.The alternative minimum tax is a tax determined on a broadened definition of income with no deductions permitted.

Correct Answer
verified

Exam 1: Introduction to Taxation

_____ 4.All interest paid to a taxpayer must be included in gross income.

Correct AnswerverifiedShow Answer

_____ 5.A taxpayer's filing status determines the basic standard deduction allowed.

Correct AnswerverifiedShow Answer

Hoku Corporation (a C corporation) had the following history of income and loss: How much of a tax refund can Hoku Corporation receive by carrying back its 2013 loss?

Correct AnswerverifiedShow Answer

Which of these entities is taxed directly on its income?

Correct AnswerverifiedShow Answer

_____ 1.The 16th Amendment to the US Constitution that provided for an income tax was ratified in 1913.

Correct AnswerverifiedShow Answer

Which of the following is never included in gross income?

Correct AnswerverifiedShow Answer

_____ 16.Adam Smith's four canons of taxation are Equity,Certainty,Economy and Convenience.

Correct AnswerverifiedShow Answer

_____ 13.The person giving the gift pays the gift tax.

Correct AnswerverifiedShow Answer

Which of the following is not a tax credit allowed a corporation?

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of an S corporation?

Correct AnswerverifiedShow Answer

Which of the following best describes horizontal equity?

Correct AnswerverifiedShow Answer

_____ 2.The first codification of the Internal Revenue Code took place in 1954.

Correct AnswerverifiedShow Answer

When was the last time the Internal Revenue Code was recodified?

Correct AnswerverifiedShow Answer

Terri owns a 50 percent interest in the TT Partnership.At the beginning of the year,her basis in her partnership interest was $75,000.The partnership reports a $40,000 loss for the year and distributes $4,000 cash to Terri.What is her basis in her partnership interest at the end of the year?

Correct AnswerverifiedShow Answer

Which of the following business entities has no provision that limits some or all of the liability of the owner?

Correct AnswerverifiedShow Answer

_____ 8.The alternative minimum tax is a tax determined on a broadened definition of income with no deductions permitted.

Correct AnswerverifiedShow Answer

Correct Answer
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_____ 1.The 16^th Amendment to the US Constitution that provided for an income tax was ratified in 1913.

Correct Answer
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verified

Correct Answer
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Correct Answer
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