1.Which of the following statements concerning the exemptionphaseout is true?
a.The phaseout applies only to taxpayers with a 39.6% marginalincome tax rate.
b.The phaseout can reduce a taxpayer's exemption amount tozero.
c.The phaseout doesn't apply to taxpayers who use the standarddeduction instead of electing to itemize deductions.
d.Statements A., B., and C. are false.
2.In 2016, Amanda earned $70,000 self-employment income. She wasallowed a $4,945 above-the line deduction for her SE tax. ComputeAmanda's maximum contribution to her profit-sharing Keogh plan.
a.$13,011
b.$12,022
c.$65,055
d.$53,000
3.This year, Mrs. Pike's compensation from her corporateemployer consisted of $325,000 current salary and $75,000 unfundeddeferred compensation payable upon her retirement at age 66. Whichof the following statements is true?
a.This year, Mrs. Pike must include $400,000 in gross income,and her employer is allowed a $400,000 deduction.
b.This year, Mrs. Pike must include $325,000 in gross income,and her employer is allowed a $400,000 deduction.
c.This year, Mrs. Pike must include $400,000 in gross income,and her employer is allowed a $325,000 deduction.
d.This year, Mrs. Pike must include $325,000 in gross income,and her employer is allowed a $325,000 deduction.
4.Ruth Anne, a single taxpayer, reported $152,600 alternativeminimum taxable income before any exemption on her 2016 Form 1040.Calculate Ruth Anne's AMT exemption.
a.$8,225
b.$45,675
c.$53,900
d.None of the above
5.Melissa, age 16, is claimed as a dependent on her parents' taxreturn. This year, Melissa earned $2,000 from babysitting and$1,280 interest income from a savings account. Compute Melissa'sstandard deduction.
$2,000
$2,350
$0
$1,050
1.Which of the following statements concerning the exemptionphaseout is true?
a.The phaseout applies only to taxpayers with a 39.6% marginalincome tax rate.
b.The phaseout can reduce a taxpayer's exemption amount tozero.
c.The phaseout doesn't apply to taxpayers who use the standarddeduction instead of electing to itemize deductions.
d.Statements A., B., and C. are false.
2.In 2016, Amanda earned $70,000 self-employment income. She wasallowed a $4,945 above-the line deduction for her SE tax. ComputeAmanda's maximum contribution to her profit-sharing Keogh plan.
a.$13,011
b.$12,022
c.$65,055
d.$53,000
3.This year, Mrs. Pike's compensation from her corporateemployer consisted of $325,000 current salary and $75,000 unfundeddeferred compensation payable upon her retirement at age 66. Whichof the following statements is true?
a.This year, Mrs. Pike must include $400,000 in gross income,and her employer is allowed a $400,000 deduction.
b.This year, Mrs. Pike must include $325,000 in gross income,and her employer is allowed a $400,000 deduction.
c.This year, Mrs. Pike must include $400,000 in gross income,and her employer is allowed a $325,000 deduction.
d.This year, Mrs. Pike must include $325,000 in gross income,and her employer is allowed a $325,000 deduction.
4.Ruth Anne, a single taxpayer, reported $152,600 alternativeminimum taxable income before any exemption on her 2016 Form 1040.Calculate Ruth Anne's AMT exemption.
a.$8,225
b.$45,675
c.$53,900
d.None of the above
5.Melissa, age 16, is claimed as a dependent on her parents' taxreturn. This year, Melissa earned $2,000 from babysitting and$1,280 interest income from a savings account. Compute Melissa'sstandard deduction.
$2,000
$2,350
$0
$1,050
