Reference no: EM132962580

Questions -

Q1- Bill and Sharice Edwards file a married joint return and have AGI of $208,000. They provide over half the support for sons Ted (14 years old ) and Zach (19 years old and full time college student ). They also provide over half of the support for Bill's niece, Barbara, who 21 and a full-time college student. What their maximum amount of child and /or dependent credits?

Q2- Which of the following are ordinary" assets?

a- An franchise fee received by the franchisor . The franchisor has continuing rights to control features of the franchisee's operations (they usually do)

b- A copyright owned by the author of a text

c- Receivables sold by a manufacturer to a finance company

d- These are all ordinary assets

Q3- Clyde made five sales of investment securities during the current year. Two sales produced short-term gains of $1,000 and $3,000 respectively. Three sales were long-term and produced a loss of $15,000 , a loss of $5,000, and a gain of $16,000 respectively.

What is Clyde's final tax position after these sales?

a- He has a short -term capital gain of 4,000 and a long-term capital loss position of $4,000.

b- He has a net capital position of 0$

c- neither of the above

Q4- A taxpayer in the 24% marginal tax bracket sold a small apartment building for $310,000 in 2020. The taxpayer purchased the rental real estate during 2017 at a cost of $270,000 and took $22.000 of depreciation deductions to the date of sale. The gain does not move the taxpayer to a different marginal tax bracket. What is the taxpayer's incremental tax on this gain?

a. $11,500

b. $9,300

c. 11.280

d. 14 880