Dick Jones, a single taxpayer, had $70,000 in taxable

Question 1 (10 points) Dick Jones, a single taxpayer, had $70,000 in taxable income before personal exemptions in thecurrent year. Jones had no tax preferences. His itemized deductions were as follows:State and local income taxes $5,000 Home mortgage interest on loan to acquire residence 6,000Miscellaneous deductions exceeding 2% of AGI 2,000 What amount did Jones report as alternative minimum taxable income before the AMTexemption?Question 1 options:A) $72,000 B) $83,000 C) $75,000 D) $77,000 Question 2 (10 points) The alternative minimum tax (AMT) is computed as follows:Question 2 options:A) The tentative AMT plus the regular tax. B) Excess of the tentative AMT over the regular tax. C) Excess of the regular tax over the tentative AMT. D) Lesser of the tentative AMT or the regular tax. Question 3 (10 points) Which of the following may not be deducted in the computation of alternative minimum tax ofan individual?Question 3 options:A) Charitable contributions B) Personal exemptions C) Traditional IRA account contribution D) 1/2 of the self-employment tax deduction Question 4 (10 points) Martin, a calendar-year individual, files a Year 1 tax return on March 31, Year 2. Martin reports$20,000 of gross income. Martin inadvertently omits $500 of interest income. The IRS mayassess additional tax up until which of the following dates?Question 4 options:A) April 15, Year 5 B) April 15, Year 8 C) March 31, Year 5 D) March 31, Year 8 Question 5 (10 points) Dawn Smith’s adjusted gross income on her Year 1 tax return was $100,000. The amount covereda 12-month period. For the Year 2 tax year, the minimum payments required from Smith to avoidthe penalty for the underpayment of estimated tax is:Question 5 options:A) 90% of the current tax on the return for the current year in four equal installments or110% of the prior year’s tax liability paid in four equal installments. B) 90% of the current tax on the return for the current year in four equal installments or100% of the prior year’s tax liability paid in four equal installments. C) 110% of the prior year’s tax liability paid in four equal installments only. D) 100% of the prior year’s tax liability paid in four equal installments only. Question 6 (10 points) How may taxes paid by an individual to a foreign country be treated?Question 6 options:A) As a credit against federal income taxes due.B)As an itemized deduction subject to the 2% of AGI floor. C) As a non-deductible expense. D) As an adjustment to gross income. Question 7 (10 points) Which of the following statements about the child and dependent care credit is correct?Question 7 options:A) The maximum credit is $600. B) The child must be under the age of 18 years. C) The child must be a direct descendant of the taxpayer. D) The credit is non-refundable. Question 8 (10 points) An employee who has had social security tax withheld in an amount greater than the maximumfor a particular year may claim:Question 8 options:A) The excess as a credit against income tax, if that excess resulted from correctwithholding by 2 or more employers. B) The excess as a credit against income tax, if that excess was withheld by 1 employer. C) Reimbursement of such excess from his employer, if that excess resulted from correctwithholding by 2 or more employers. D) Such excess as either a credit or an itemized deduction, at the election of the employee,if that excess resulted from correct withholding by 2 or more employers. Question 9 (10 points) Which one of the following statements concerning the American Opportunity Credit is notcorrect?Question 9 options:A) If a parent claims a child as a dependent, any qualified expenses paid by the child aredeemed to be paid by the parent. B) To be eligible for the credit, the student must be enrolled full-time for at least oneacademic period during the year. C) The credit is available for the first 4 years of post-secondary education. D) The credit is available on a per student basis. Question 10 (10 points) Which one of the following statements concerning the Lifetime Learning Credit is not correct?Question 10 options: A) The credit is available on a per student basis. B) The credit may be claimed for an unlimited number of years. C) The credit is 20% for the first $10,000 of qualified tuition and related expenses. D) Qualifying expenses include the cost of tuition for graduate courses at an eligibleeducational institution.

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