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ACCT 324 Week 5 Quiz

1. (TCO 4) Several years ago, Floyd purchased a structure for $150,000 that was originally placed in service in 1929. In the current year, he incurred qualifying rehabilitation expenditures of $200,000. The amount of the tax credit for rehabilitation expenditures, and the amount by which the building’s basis for cost recovery would increase as a result of the rehabilitation expenditures, are the following amounts: (Points : 2)

Question 2.2. (TCO 4) George and Jill are husband and wife, ages 67 and 65, respectively. During the year, they receive Social Security benefits of $4,000 and have adjusted gross income of $11,000. Assuming they file a joint return, their tax credit for the elderly, before considering any possible limitation due to their tax liability, is: (Points : 2)

Question 3.3. (TCO 4) Tom, unmarried, pays Heloise (a housekeeper) $6,100 to care for his physically incapacitated mother so that he can be gainfully employed. He has earned income of $38,000, adjusted gross income of $40,000, and claims his mother as a dependent. Tom’s mother has lived with him for the entire year. Tom may claim a credit for child and dependent care expenses of: (Points : 2)

Question 4.4. (TCO 4) Which of the following issues does not need resolution in an employer’s effort to comply with employment tax payment requirements? (Points : 2)

Question 5.5. (TCO 4) Pat generated self-employment income in 20×2 of $65,000. The self-employment tax is: (Points : 2)

Question 6.6. (TCO 5) Green Corporation, a calendar year taxpayer, has alternative minimum taxable income [before adjustment for adjusted current earnings (ACE)] of $600,000 for 20×2. If Green’s ACE is $1,500,000, then its tentative minimum tax for 20×2 is: (Points : 2)

Question 7.7. (TCO 5) In 20×2, Fred has a $75,000 loss on a passive activity for regular income tax purposes. For AMT purposes, his loss is $65,000. The amount of the AMT adjustment resulting from the passive activity loss is:(Points : 2)

Question 8.8. (TCO 5) Which of the following can produce an AMT preference rather than an AMT adjustment? (Points : 2)

Question 9.9. (TCO 4) Nonrefundable tax credits include: (Points : 2)

Question 10.10. (TCO 4) The maximum amount of the disabled access credit is: (Points : 2)