ACCT 553 Week 5 Quiz
- (TCO E) For federal tax purposes, royalty income not derived in the ordinary course of a business is classified as:
- (TCO F) When comparing corporate and individual taxation, the following statements are true, except:
- (TCO H) Al and Amy file a joint return for the 2012 tax year. Their adjusted gross income is $80,000. They had a net investment income of $8,000. In 2012, they had the following interest expenses:
- (TCO B) Charitable contribution deductions for capital gains property made by individuals without a reduction for long-term capital gains to public charities are limited to:
- (TCO A) The following taxes were paid by Tim: Real estate taxes on his home: $2,000, State income taxes: $900, State gasoline tax (personal use of automobile): $150. In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes?
- (TCO F) Hoover, Inc. had gross receipts from operations of $230,000, operating and other expenses of $310,000, and dividends received from a 45 percent-owned domestic corporation of $120,000. Hoover’s tax position for the year is:
- (TCO G) All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2012, the corporation generates taxable income of $30,000 from its active business activities. In addition, it earns $20,000 of interest from investments and incurs a $40,000 loss from a passive activity. How much income does the C corporation report for 2012?
- (TCO G) Mike, who is single, has $100,000 of salary, $15,000 of income from a limited partnership, and a $30,000 passive loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $100,000. Of the $30,000 loss, how much is deductible?
- (TCO F) Pam owns a sole proprietorship, and Kevin is the sole shareholder of a C (regular) corporation. Each business sustained a $16,000 operating loss and a $2,500 capital loss for the year. Evaluate how these losses will affect the taxable income of the two owners?
- (TCO G) Briefly (1) define and (2) discuss the purpose and impact of each of the following: