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What do taxpayers deduct from adjusted gross income?

What do taxpayers deduct from adjusted gross income?

22. A) The lesser of itemized deductions or the standard deduction B) The greater of itemized deductions or the standard deduction C) The total of itemized deductions plus the standard deduction D) None of the above

23. The unearned income in excess of $1,900 of a child under 24 years of age might be taxed: A) In the same manner as income earned by the child B) At the parents’ top marginal tax rate C) By adding a five percent excise tax on the unearned income to the otherwise computed tax D) None of the above

24. A dependent under 24 years of age and a full-time student having only unearned income to declare on his or her tax return is taxed on the parents’ top marginal tax rate for unearned income in excess of: A) $0 B) $900 C) $1,800 D) $2,700

A) $4,000 B) $2,000 C) $3,000 D) $0

25. Which of the following are deductible? A) State and local property taxes B) State and local sales taxes C) (a) and (b) above D) None of the above

26. A tax preference item for alternative minimum tax purposes for 2011 is: A) Appreciation on property donated to a charity B) Unrecognized gain on the sale of a personal residence C) Deferred Series EE bond interest D) None of the above

27. During the current tax year, John Matthews redeems Series EE bonds, receiving a return of principal of $16,000 and accrued interest of $4,000. His child’s education expenses at Williams College are $20,000. Assume there is no problem in qualifying for the exclusion. How much of the interest is exclude able from income?

28. During the current tax year, John Matthews redeems Series EE bonds, receiving a return of principal of $16,000 and accrued interest of $4,000. His child’s education expenses at Williams College are $16,000. Assume there is no problem in qualifying for the exclusion. How much of the interest is exclude able? A) $4,000 B) $2,000 C) $3,200 D) $3,000

30. The highest long-term capital gains tax rate for assets held greater than 12 months in 2011 is: A) 15% B) 20% C) 25% D) 28% E) 33%

1) Richards, Inc., incurred the following title loan Maine costs during May: Raw materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34,200 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,900 Manufacturing overhead, actual. . . . . . . . . . . . . . . . . . . . . 48,800 Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,220 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 25,580 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,800 Required:

A) State taxes B) Charitable contributions C) Gambling losses D) Mortgage interest

During the month, 59,00 units of product were manufactured and 4,600 units of product were sold. On May 1, Richards, Inc., carried no inventories. On May 31, there were no inventories other than finished goods. a. Calculate the cost of goods manufactured during May and the average cost per unit of product manufactured. b. Calculate the cost of goods sold during May. c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements? d. (Optional) Prepare a traditional (absorption) income statement for Richards, Inc., for the month of May. Assume that sales for the month were $4,896,000 and the company?s effective income tax rate was 35%.

2) Gravois, Inc., incurred the following costs during June: OR Enaz, Inc., incurred the following costs during June: Selling expenses $ 160,100 Direct labor 287,000 Interest expense 41,800 Manufacturing overhead, actual 127,400 Raw materials used 488,000 Administrative expenses 119,200

During the month, 19,500 units of product were manufactured and 11,000 units of product were sold. On June 1, Gravois, Inc., carried no inventories. On June 30, there were no inventories for raw materials or work in process.

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