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Western Federal Taxation 2018 Comprehensive 41st Edition by William H. Hoffman - Test Bank
Western Federal Taxation 2018 Comprehensive 41st Edition by William H. Hoffman - Test Bank
https://tbzuiqe.com/product/western-federal-taxation-2018-comprehensive-41st-edition-by-william-h-
hoffman-test-bank/
Sample Test
Chapter_03__Computing_The_Tax
a. True
b. False
ANSWER: False
RATIONALE: Even though a taxpayer chooses to itemize, deductions
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: The determination of AGI precedes (not follows) the determination of taxabl
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: What is described are deductions for AGI. Itemized deductions are also known as deducti
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: A decrease in AGI may increase the medical expense deduction due to the 10%
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: An increase in AGI increases the allowable charitable contribution that can be claime
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: Gifts and inheritances are two major exclusions not reported on Form 1
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: The filing status is relevant in determining the amount of the standard deduc
POINTS: 1
DIFFICULTY: Easy
b. False
ANSWER: False
RATIONALE: Under the global system of taxation followed by the U.S., foreign-sourced income is subject
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
14. The basic and additional standard deductions
both are subject to an annual adjustment for inflation.
a. True
b. False
ANSWER: True
RATIONALE: The inflation adjustment is made annually to both the basic standard deduction and t
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
a. True
b. False
ANSWER: False
RATIONALE: Just the opposite is the case. The deduction for property taxes and mortgage interest expen
POINTS: 1
DIFFICULTY: Easy
16. Once they reach age 65, many taxpayers will switch from
itemizing their deductions from AGI and start claiming the
standard deduction.
a. True
b. False
ANSWER: True
RATIONALE: Not only is the additional standard deduction now available but also the mortgage interest d
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: The choice is elective. Claude may wish to avoid the time and trouble of compl
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
21. Jason and Peg are married and file a joint return. Both
are over 65 years of age and Jason is blind. Their standard
deduction for 2017 is $16,450 ($12,700 + $1,250 + $1,250 +
$1,250).
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
23. Buddy and Hazel are ages 72 and 71 and file a joint
return. If they have itemized deductions of $14,600 for 2017,
they should not claim the standard deduction.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: Either U.S. citizenship or residency will suffice in order to claim the standard deduction
POINTS: 1
DIFFICULTY: Easy
26. Dan and Donna are husband and wife and file separate
returns for the year. If Dan itemizes his deductions from AGI,
Donna cannot claim the standard deduction.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: His standard deduction is the greater of $1,050 or $1,200 ($850 + $35
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: An exemption is allowed if the spouse has no gross income and is not claimed as a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
a. True
b. False
ANSWER: False
RATIONALE: They must be married at the end of the year (unless one spouse dies) in order to
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: For the support test, all of the scholarship is disregarded. Scholarships are treated differ
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: Capital expenditures can be considered in determining support. It is assumed that the
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: The funds are counted only if used for support purposes.
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: The sons do not provide more than half of their mother’s support. In this situation,
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
39. In 2017, Hal furnishes more than half of the support of his
ex-wife and her father, both of whom live with him. The
divorce occurred in 2016. Hal may claim the father-in-law and
the ex-wife as dependents.
a. True
b. False
ANSWER: True
The father-in-law meets the relationship test, but the ex-wife does not. Except in the year of
RATIONALE:
household test.
POINTS: 1
DIFFICULTY: Moderate
a. True
b. False
ANSWER: True
RATIONALE: For purposes of the relationship test, divorce does not change “in-law”
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
Being age 20, Darren cannot be a qualifying child unless he is a full-time student. He cannot b
RATIONALE:
test.
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: Lucas does not meet the definition of a qualifying child if the abode test is failed. Lucas als
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: If certain conditions are satisfied (e.g., they did not have to file but did so to obtain a refund
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: Stealth taxes do not begin until taxpayers reach significant income lev
POINTS: 1
DIFFICULTY: Easy
46. In determining the filing requirement based on gross
income received, both additional standard deductions (i.e.,
age and blindness) are taken into account.
a. True
b. False
ANSWER: False
RATIONALE: The additional standard deduction for blindness is not taken into acco
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
RATIONALE: The tax return is due on or before the fifteenth day of the fourth month following the end
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
a. True
b. False
ANSWER: False
RATIONALE: Surviving spouse filing status begins in the year following the year of d
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: If the executor of his wife’s estate does not agree to filing a joint return, Jake’s only optio
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: False
Single taxpayers can enjoy many tax benefits that are unavailable to married persons filing se
RATIONALE:
dependent care expenses, deduction for interest paid on student loans.
POINTS: 1
DIFFICULTY: Moderate
a. True
b. False
ANSWER: True
RATIONALE: Crissa is not Katelyn’s dependent. She fails the age test for qualifying child purposes and th
POINTS: 1
DIFFICULTY: Moderate
a. True
b. False
ANSWER: True
RATIONALE: To be head of household, the dependent involved must meet the relationship test. T
POINTS: 1
DIFFICULTY: Moderate
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
a. True
b. False
ANSWER: True
RATIONALE: The income tax rates in effect in 1944-1945 ranged from 23% to 94%
POINTS: 1
DIFFICULTY: Easy