Reference no: EM132503044

Problem 1: Andy and Jane are married taxpayers in 2019. They both are under 65. They had a total of $55,000 in wages and $800 in interest income. Their adjustments in income totaled $4,000. Andy and Jane also had $18,700 in itemized deductions.

What is the amount of their itemized deductions or standard deduction?

Select one:
a. $22,700
b. $4,000
c. $18,700
d. $24,400

Problem 2: LeBron has a son, Bronny, who is 20 and in college. Bronny lived away at college all during 2019, as he was a full-time student. Can Bronny be a dependent on LeBron's 2019 tax return?

Select one:
a. Yes
b. No

Problem 3: Steve is single, and fully supports his son, 28 years old. His son earned $2,500 in income for the year. His son lives in his own apartment which Steve pays the rent for. Can Steve claim his son as a dependent?

Select one:
a. Yes
b. No

Problem 4: Sarah lost was laid off from her job during 2019. Before the lay off, she had earned $15,450. When she was laid off she received $3,400 in unemployment benefits. In December, Sarah found a job and made $3,000. From this information, what is Sarah's gross income for 2019?

Select one:
a. $0
b. $21,850
c. $3,000
d. $18,450

Problem 5: Which of the following would be considered capital asset?

Select one:
a. Stock in Disney
b. Land held for future sale.
c. A painting passed down from family.
d. All are capital assets

Problem 6: Joe owned a building that was worth $100,000. In exchange for the building, he received a Corvette that was worth $30,000, ownership in a business worth $50,000, and cash in the amount of $30,000. What is the amount he received in this transaction?

Select one:
a. $10,000
b. $100,000
c. $30,000
d. $110,000

Problem 7: Andrea, who is a single taxpayer, earned $35,000 in ordinary income during 2019. She also earned $15,000 additionally in long-term capital gains, giving her $50,000 in total taxable income. For 2019, single taxpayers pay 0 percent on income up to $39,375. Assuming a tax of $3,977 on the ordinary income, what is Andrea's total tax?

Select one:
a. $1,594
b. $2,250
c. $6,227
d. $5,571

Problem 8: Jeremy and Jamie are married. They have two children they are 11 and 8. Jeremy's elderly father lives with them, and did so for entire 2019, and his father's only income was Social Security in the amoutn of $12,000. How many dependents can they claim on their 2019 tax return?

Select one:
a. 2
b. 3
c. 0
d. 5

Problem 9: David has a Roth IRA, that he has held more than 5 years. He has contributed $50,000, and now has a market value of $100,000. David is 36 and during 2019 he withdrew $70,000. How much of the distribution will be taxable?

Select one:
a. $70,000
b. $50,000
c. $20,000
d. $30,000

Problem 10: Which of the following is not a deductible medical expense?

Select one:
a. Over the Counter Allergy Medicine
b. Birth Control Pills
c. Diabetes Medicine
d. Contact Eye lenses

Problem 11: Aaron and Amy have a daughter who is in college. While at Tiffin University, she had $10,000 of qualified tuition expenses, but received $6,500 in scholarships and grants during the year. How much will the American Opportunity Credit be on their 2019 tax return?

Select one:
a. $2,000
b. $3,500
c. $2,500
d. $2,375