Quiz for Part 5


1	Joe Friday has gross income of $67,000 for the current year. Joe is married and has 3 children. Joe's total itemized deductions are $12,000. What is Joe's tax liability (use 1999 tax rate schedules from the IRS).
		A)	$6,188
		B)	$6,334
		C)	$10,044
		D)	$9,694
		E)	Some other answer


2	Fred and June have two children age 3 and 6. Both Fred and June must work to support payments on their new car and house. Fred's gross income is $27,000 and June's is $34,000. What is the amount of dependent and child care credit available to Fred and June if they spent $3,750 on child care this year?
		A)	$960
		B)	$480
		C)	$750
		D)	$1,125
		E)	Some other answer


3	Jane and Paul have two children age 4, and 7. During 1999 Jane and Paul received the following $25,000 in wages and $200 in interest. How much earned income credit is available to Jane and Paul (This problem requires that you acquire earned income credit information from other sources on the net)?
		A)	$0
		B)	$731
		C)	$689
		D)	$1133
		E)	Some other answer.


4	George experienced the following gains and losses during the current period $10,000 short-term capital loss, $20,000 long-term capital loss, and a $15,000 long-term capital gain. George's gross income from other sources excluding the capital items is $29,000. What is George's adjusted gross income for the period?
		A)	$19,000
		B)	$14,000
		C)	$26,000
		D)	$24,000
		E)	Some other answer.


5	Mary Margaret has total itemized deductions during the current period of $25,000. Her adjusted gross income is $186,600. Mary has no medical expenses, but incurred a deductible casualty loss of $6,000 (after insurance, $100 floor and 10% of AGI). What is Mary's total itemized deductions allowed?
		A)	$23,200
		B)	$25,000
		C)	$15,200
		D)	$1,944
		E)	Some other answer.


6	Mr. and Mrs. Money will file a married filing jointly tax return during the current period. Mr. and Mrs. M have 4 children and will report AGI of $325,500. What is the amount the Money's will be allowed for personal and dependent exemptions?
		A)	$15,900
		B)	$6,360
		C)	$0
		D)	$9,540
		E)	Some other answer.


7	Mr. and Mrs. Bloom each made $2,000 contributions to their respective IRAs. Mr. Bloom is active in his employer's qualified pension plan. The Bloom's AGI before considering the IRA deductions is $50,500. What is the Bloom's deductible IRA contribution?
		A)	$4,000
		B)	$2,200
		C)	$1,800
		D)	$1,100
		E)	Some other answer.


8	Janet purchased a single premium annuity in 1980 for $85,000. During this year Janet turns 65 and will begin receiving payments of $1,200 per month for the rest of her life beginning on Jan 1 of next year. According to the life expectancy tables provided in Treasury regulations Janet is expected to receive 240 payments. How much of next years income from the annuity will not be subject to tax?
		A)	$4,250
		B)	$10,150
		C)	$0
		D)	$14,400
		E)	Some other answer.


9	Mr. G purchased stock in a shrimp farm for $30,000 10 years ago. This year when the stock is worth $25,000, Mr. G gives the stock to his son. In October of this year Mr. G's son sells the stock for $28,000. Mr. G paid a gift tax of $1,000 on the transfer of stock to his son. What is Mr. G's son's gain or loss on the sale of the stock.
		A)	$3,000
		B)	$2,000
		C)	$0
		D)	$(2,000)
		E)	Some other answer.


10	Sharon is a 25 percent shareholder in SBU Corporation, a calendar year S corporation. SBU incurred a $100,000 loss for the current period. Sharon's basis in her SBU stock is $20,000, she also has a $10,000 basis in a note receivable from the corporation. How much of the current loss can Sharon deduct on her personal return?
		A)	$25,000
		B)	$30,000
		C)	$20,000
		D)	$10,000
		E)	Some other answer.

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