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Pearsons Federal Taxation 2017 Individuals 30th Edition Pope Test Bank
Pearsons Federal Taxation 2017 Individuals 30th Edition Pope Test Bank
Pearsons Federal Taxation 2017 Individuals 30th Edition Pope Test Bank
1) For individuals, all deductible expenses must be classified as deductions for AGI or deductions from
AGI.
Answer: TRUE
Explanation: For individual taxpayers, the IRC distinguishes between deductions for and from AGI.
Page Ref.: I:7-2
Objective: 1
2) Medical expenses are deductible as a from AGI deduction to the extent that they exceed 2 percent of
the taxpayer's AGI.
Answer: FALSE
Explanation: The floor for medical expenses is 10% of AGI (unless the taxpayer is 65 or older).
Page Ref.: I:7-2
Objective: 1
3) Medical expenses paid on behalf of an individual who could be the taxpayer's dependent except for the
gross income or joint return tests are deductible as itemized deductions.
Answer: TRUE
Explanation: Generally a taxpayer can only deduct his own qualifying expenses, but a limited exception
applies for payment of another's medical expenses.
Page Ref.: I:7-2
Objective: 1
4) Medical expenses incurred on behalf of children of divorced parents are deductible by the parent who
pays the expenses but only if that parent also is entitled to the dependency exemption.
Answer: FALSE
Explanation: As long as one divorced parent qualifies to claim the dependency exemption under Sec.
152(e), the parent who pays medical expenses on behalf of the children may deduct the expenses.
Page Ref.: I:7-2
Objective: 1
5) The definition of medical care includes preventative measures such as routine physical examinations.
Answer: TRUE
Explanation: The definition of medical care does include preventative medical care.
Page Ref.: I:7-3
Objective: 1
6) Due to stress on the job, taxpayer Fiona began to experience anxiety attacks. Her doctor advised her to
engage in some relation activities. Fiona enrolled in yoga lessons. The cost of the yoga lessons to alleviate
this medical condition is tax deductible.
Answer: FALSE
Explanation: Unless expenditures are for routine preventive care, expenditures must be incurred to treat
a specific ailment, rather than for general health.
Page Ref.: I:7-3; Example I:7-2
Objective: 1
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7) Expenditures for a weight reduction program are deductible if recommended by a physician to treat a
specific medical condition such as hypertension caused by excess weight.
Answer: TRUE
Explanation: Unless expenditures are for routine preventive care, expenditures must be incurred to treat
a specific ailment, rather than for general health. A weight loss program must be prescribed by a doctor
to treat a specific condition.
Page Ref.: I:7-3; Example I:7-3
Objective: 1
8) In order for a taxpayer to deduct a medical expense, the amount must be paid to a licensed physician.
Answer: FALSE
Explanation: Taxpayers may deduct payments to a wide range of medical, dental, and other diagnostic
and healing services.
Page Ref.: I:7-3 and I:7-4
Objective: 1
9) Jeffrey, a T.V. news anchor, is concerned about the wrinkles around his eyes. Because it is job-related,
the cost of a face lift to eliminate these wrinkles is a deductible medical expense.
Answer: FALSE
Explanation: Cosmetic surgery is not deductible unless such surgery is necessary to correct a deformity
arising from a congenital abnormality, a personal injury resulting from an accident or trauma, or a
disfiguring disease.
Page Ref.: I:7-4
Objective: 1
10) Expenditures for long-term care insurance premiums qualify as a medical expense deduction subject
to an annual limit based upon the age of an individual.
Answer: TRUE
Explanation: Premiums for long-term care will qualify for medical expense treatment, but the deduction
amounts are limited by the taxpayer's age.
Page Ref.: I:7-5
Objective: 1
11) Capital expenditures incurred for medical purposes which permanently improve or better the
taxpayer's property are deductible, but only to the extent the cost exceeds the increase in fair market
value to the property attributable to the capital expenditure.
Answer: TRUE
Explanation: Capital improvements needed for medical care are only allowed to the extent they exceed
the increase in the FMV of the property.
Page Ref.: I:7-5
Objective: 1
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12) Expenditures incurred in removing structural barriers in the home of a physically handicapped
individual are deductible only to the extent the costs exceed the increase in fair market value to the
property attributable to the capital expenditure.
Answer: FALSE
Explanation: Such expenses are fully deductible subject to the 10% (7.5% for those 65 and older)
limitation on all medical expenses.
Page Ref.: I:7-5
Objective: 1
13) If the principal reason for a taxpayer's presence in an institution (e.g. a nursing home) is the need and
availability of medical care, the entire cost of lodging and meals is considered qualified medical
expenditures.
Answer: TRUE
Explanation: Costs of institutional care (including meals and lodging) are only allowed if the principal
reason is for access to needed medical care.
Page Ref.: I:7-6
Objective: 1
14) A medical expense is generally deductible only in the year in which the expense is actually paid.
Answer: TRUE
Explanation: This cash basis rule supercedes the accounting method of the taxpayer and the timing of the
event causing the expenditure.
Page Ref.: I:7-6
Objective: 1
15) If a prepayment is a requirement for the receipt of the medical care, the payment is deductible in the
year paid rather than the year in which the care is rendered.
Answer: TRUE
Explanation: Generally, prepayments are deferred. An exception applies if the prepayment is required
for the medical treatment.
Page Ref.: I:7-7
Objective: 1
16) If a medical expense reimbursement is received in a year after a deduction has been taken on a
previous year's return, the previous year's return must be amended to eliminate the reimbursed expense.
Answer: FALSE
Explanation: The reimbursement should be included in gross income in the year received to the extent
the taxpayer received a tax benefit in the year of payment.
Page Ref.: I:7-7
Objective: 1
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17) Van pays the following medical expenses this year:
• $1,500 for doctor bills for Van's son who is claimed as a dependent by Van's former spouse.
• $300 for Van's eyeglasses.
• $900 for Van's dental work.
• $3,800 for Van's face lift. Van, a newscaster, is worried about the wrinkles around his eyes.
How much can Van include on his return as qualified medical expenses before limitation?
A) $1,200
B) $2,400
C) $2,700
D) $6,500
Answer: C
Explanation: ($1,500 + $300 + $900) = $2,700. The face lift is a cosmetic procedure and does not qualify.
Page Ref.: I:7-2 through I:7-4
Objective: 1
19) All of the following payments for medical items are deductible with the exception of the payment for
A) insulin.
B) general appointment for teeth cleaning.
C) acupuncture for specific medical purposes.
D) nonprescription medicine for treatment of a specific medical condition.
Answer: D
Explanation: Only prescription drugs and insulin are deductible.
Page Ref.: I:7-3 and I:7-4
Objective: 1
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20) In 2016 Sela traveled from her home in Flagstaff to San Francisco to seek specialized medical care.
Because she was unable to travel alone, her father accompanied her. Total expenses included:
The total medical expenses deductible before the 10% limitation are
A) $1,600.
B) $2,090.
C) $2,500.
D) $2,690.
Answer: B
Explanation: $300 [($50 maximum × 2) for 3 nights ] + $190 mileage (1,000 × 19 cents per mile) + $1,600
doctors = $2,090.
Page Ref.: I:7-4
Objective: 1
21) Leo spent $6,600 to construct an entrance ramp and to widen doorways in his personal residence to
make the home accessible for his wife, who is disabled and confined to a wheelchair. The $6,600
expenditure increased the value of the residence by $2,000. How much of the $6,600 is a deductible
medical expense (before considering limits based on AGI)?
A) $0
B) $2,000
C) $4,600
D) $6,600
Answer: D
Explanation: Expenditures to remove structural barriers in the home of a physically handicapped
individual such as costs of constructing entrance ramps, widening doorways and halls, etc. are deductible
in full.
Page Ref.: I:7-5
Objective: 1
22) Linda had a swimming pool constructed at her house. Her physician advised and prescribed to her
that the pool would slow the effects of her degenerative disease. The pool was not suitable for
recreational use. Prior to the construction of the pool, the fair market value of her house was $172,000.
After the construction of the pool, the appraised fair market value of the house was $181,000. The cost of
the pool was $13,000. What is the amount of Linda's qualified medical expense (before considering limits
based on AGI)?
A) $0
B) $4,000
C) $9,000
D) $13,000
Answer: B
Explanation: The deduction is limited to the portion of the cost which exceeds the increase in the house's
FMV or $13,000 - ($181,000 - $172,000) = $4,000.
Page Ref.: I:7-5; Example I:7-4
Objective: 1
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23) Alan, who is a security officer, is shot while on the job. As a result, Alan suffers from a chronic leg
injury and must use a wheelchair and undergo therapy to regain and retain strength. Alan's physician
recommends that he install a whirlpool bath in his home for therapy. During the year, Alan makes the
following expenditures:
Wheelchair $ 1,200
Whirlpool bath 2,000
Maintenance of the whirlpool 250
Increased utility bills associated with whirlpool 450
Entrance ramp, various home modifications 7,200
A professional appraiser tells Alan that the whirlpool has increased the value of his home by $1,000.
Alan's deductible medical expenses (before considering limitations based on AGI) will be
A) $6,000.
B) $10,100.
C) $7,000.
D) $7,700.
Answer: B
Explanation:
Wheelchair $ 1,200
Whirlpool bath - increase in home value 1,000
Maintenance of the whirlpool 250
Increased utility bills associated with whirlpool 450
Entrance ramp, various home modifications 7,200
Total qualifying expenses $10,100
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Another random document with
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The Project Gutenberg eBook of John G.
Paton, missionary to the New Hebrides
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Language: English
An Autobiography.
FIRST PART.
JOHN G. PATON,
MISSIONARY TO THE NEW HEBRIDES.
AN AUTOBIOGRAPHY.
EDITED BY HIS BROTHER.
NEW HEBRIDES.
An Autobiography.
FIRST PART.
CHAPTER II.
AT SCHOOL AND COLLEGE.
A Typical Scottish School 31
An Unacknowledged Prize 32
A Wayward Master 33
Learning a Trade 33
My Father’s Prayers 34
“Jehovah Jireh” 34
With Sappers and Miners 36
The Harvest Field 38
On the Road to Glasgow 39
A Memorable Parting 40
Before the Examiners 42
Killing Work 43
Deep Waters 44
Maryhill School 45
Rough School Scenes 46
“Aut Cæsar Aut Nullus” 48
My Wages 49
CHAPTER III.
IN GLASGOW CITY MISSION.
“He Leadeth Me” 53
A Degraded District 55
The Gospel in a Hay-Loft 56
New Mission Premises 58
At Work for Jesus 59
At War with Hell 62
Sowing Gospel Seed 64
Publicans on the War Path 65
Marched to the Police Office 67
Papists and Infidels 69
An Infidel Saved 70
An Infidel in Despair 71
A Brand from the Burning 72
A Saintly Child 75
Papists in Arms 77
Elder and Student 81
CHAPTER IV.
FOREIGN MISSION CLAIMS.
The Wail of the Heathen 85
A Missionary Wanted 85
Two Souls on the Altar 87
Lions in the Path 89
The Old Folks at Home 92
Successors in Green Street Mission 95
Old Green Street Hands 97
A Father in God 97
CHAPTER V.
THE NEW HEBRIDES.
License and Ordination 101
At Sea 102
From Melbourne to Aneityum 102
Settlement on Tanna 105
Our Mission Stations 106
Diplomatic Chiefs 107
Painful First Impressions 108
Bloody Scenes 109
The Widow’s Doom 111
CHAPTER VI.
LIFE AND DEATH ON TANNA.
Our Island Home 115
Learning the Language 116
A Religion of Fear 118
With or Without a God 119
Ideas of the Invisible 120
Gods and Demons 121
My Companion Missionary 122
Pioneers in New Hebrides 123
Missionaries of Aneityum 125
The Lord’s Arrowroot 126
Unhealthy Sites 127
The Great Bereavement 129
Memorial Tributes 131
Selwyn and Patteson at a Tanna Grave 133
Her Last Letter 134
Last Words 137
Presentiment and Mystery 138
CHAPTER VII.
MISSION LEAVES FROM TANNA.
Tannese Natives 141
“Tabooed” 142
Jehovah’s Rain 143
“Big Hays” 144
War and Cannibalism 145
The Lot of Woman 146
Sacred Days 148
Preaching in Villages 149
Native Teachers 150
The War Shell 151
Deadly Superstitions 152
A League of Blood 154
Chiefs in Council 155
Defence of Women 157
A League of Peace 157
Secret Disciples 159
A Christo-Heathen Funeral 159
Clever Thieves 160
Ships of Fire 164
H.M.S. Cordelia 166
Captain Vernon and Miaki 167
The Captain and the Chiefs 168
The John Williams 169
Evanescent Impressions 170
A House on the Hill 171
In Fever Grips 171
“Noble Old Abraham” 172
Critics in Easy Chairs 174
CHAPTER VIII.
MORE MISSION LEAVES FROM TANNA.
The Blood-Fiend Unleashed 179
In the Camp of the Enemy 180
A Typical South Sea Trader 182
Young Rarip’s Death 183
The Trader’s Retribution 185
Worship and War 186
Saved from Strangling 187
Wrath Restrained 188
Under the Axe 191
The Clubbing of Namuri 193
A Native Saint and Martyr 195
Bribes Refused 197
Widows Rescued 197
The Sinking of a Well 198
Church-Building on Tanna 199
Ancient Stone God 201
Printing First Tannese Book 201
A Christian Captain 203
Levelled Muskets 204
A French Refugee 205
A Villainous Captain 208
Like Master—Like Men 209
Wrecked on Purpose 212
The Kanaka Traffic 213
A Heathen Festival 215
Sacrifices to Idols 218
Heathen Dance and Sham Fight 219
Six Native Teachers 221
A Homeric Episode 222
Victims for Cannibal Feast 223
The Jaws of Death 224
Nahak or Sorcery 226
Killing me by Nahak 227
Nahak Defied 229
Protected by Jehovah 230
“Almost Persuaded” 231
Escorted to the Battle-Field 232
Praying for Enemies 233
Our Canoe on the Reef 233
A Perilous Pilgrimage 236
Rocks and Waters 237
CHAPTER IX.
DEEPENING SHADOWS.
Welcome Guests 243
A Fiendish Deed 244
The Plague of Measles 245
A Heroic Soul 246
Horrors of Epidemic 247
A Memorable New Year 248
A Missionary Attacked 249
In the Valley of the Shadow 251
Blow from an Adze 252
A Missionary’s Death 253
Mrs. Johnston’s Letter 255
A Heavy Loss 256
The Story of Kowia 256
Kowia’s Soliloquy 258
The Passing of Kowia 259
Mortality of Measles 261
Fuel to the Fire 262
Hurricanes 262
A Spate of Blood and Terror 263
Nowar Vacillates 265
The Anger of the Gods 265
Not Afraid to Die 266
Martyrs of Erromanga 267
Visit to the Gordons 268
Their Martyrdom 269
Vindication of the Gordons 270
Gordon’s Last Letter 272
Plots of Murder 273
Death by Nahak 275
Nowar Halting Again 275
Old Abraham’s Prayer 277
Miaki and the Mission House 278
Satanic Influences 280
Perplexity Deepening 280
Bishop Selwyn’s Testimony 281
Rotten Tracts 283
Captain and Mate of Blue Bell 285
My Precious Dog 287
Fishing Nets and Kawases 288
The Taro Plant 290
The Kava Drink 290
Katasian and the Club Scene 291
The Yams 292
Sunshine and Shadow 292
Teachers Demoralized 293
The Chief’s Alphabet 294
Our Evil Genius 295
Ships of Fire Again 295
Commodore Seymour’s Visit 296
Nouka and Queen ’Toria 297
The Dog to his Vomit Again 298
CHAPTER X.
FAREWELL SCENES.
The War Fever 303
Forced to the War Council 305
A Truce Among the Chiefs 306
Chiefs and People 308
The Kiss of Judas 309
The Death of Ian 309
The Quivering Knife 310
A War of Revenge 312
In the Thick of the Battle 313
Tender Mercies of the Wicked 315
Escape for Life 316
The Loss of All 317
Under the Tomahawk 318
Jehovah is Hearing 318
The Host Turned Back 320
The War Against Manuman 320
Traps Laid 321
House Broken Up 322
War Against Our Friends 322
A Treacherous Murderer 323
On the Chestnut Tree 324
Bargaining for Life 325
Five Hours in a Canoe 328
Kneeling on the Sands 329
Faimungo’s Farewell 330
“Follow! Follow!” 331
A Race for Life 332
Ringed Round with Death 334
Faint yet Pursuing 336
Out of the Lion’s Jaws 337
Brothers in Distress 339
Intervening Events 341
A Cannibal’s Taste 341
Pillars of Cloud and Fire 342
Passing by on the Other Side 344
Kapuku and the Idol Gods 344
A Devil Chief 344
“In Perils Oft” 345
Through Fire and Water 345
“Sail O! Sail O!” 349
“Let Me Die” 350
In Perils on the Sea 351
Tannese Visitors 352
The Devil Chief Again 353
Speckled and Spotted 354
Their Desired Haven 355
“I am Left Alone” 355
My Earthly All 356
Eternal Hope 356
Australia to the Rescue 357
For My Brethren’s Sake 358
A New Holy League 358
The Uses of Adversity 359
Arm-chair Critics Again 360
Concluding Note 361
Prospectus of Part Second 362
APPENDIX.
A. The Prayer of the Chiefs of Tanna 367
B. Notes on the New Hebrides 371
LIST OF ILLUSTRATIONS.
What I write here is for the glory of God. For more than twenty years
have I been urged to record my story as a missionary of the Cross;
but always till now, in my sixty-fourth year, my heart has shrunk
from the task, as savouring too much of self. Latterly the conviction
has been borne home to me that if there be much in my experience
which the Church of God ought to know, it would be pride on my
part, and not humility, to let it die with me. I lift my pen, therefore,
with that motive supreme in my heart; and, so far as memory and
entries in my note-books and letters of my own and of other friends
serve or help my sincere desire to be truthful and fair, the following
chapters will present a faithful picture of the life through which the
Lord has led me. If it bows any of my readers under as deep and
certain a confidence as mine, that in “God’s hand our breath is, and
His are all our ways,” my task will not be fruitless in the Great Day.