Question 1 Tony and Anita are married and file a joint tax return

Accounting Feb 27, 2023

Question 1
Tony and Anita are married and file a joint tax return. They provide more than half the support for their daughter (age 16) who had gross income of $4,000 and their nephew (Tony's deceased brother's child who is 17 and lives with them) who had gross income of $3,800. Both the daughter and the nephew are full-time students. What is the total number of exemptions Tony and Anita can claim on their tax return?
a. 4
b. 3
c. 2
d. 1

Question 2

Maria, age 12, is claimed as a dependent on her parents' tax return. She has gross income consisting solely of taxable dividends of $2,800. What is Maria's taxable income?

a. $2,800

b. $1,800

c. $1,750

d. $0

Question 3

George and Laura, a married couple with an adjusted gross income of $100,000, made the following contributions to qualified charitable organizations: • Cash of $8,000 given to State University. • Used personal clothing donated to Goodwill. The clothing was acquired two years ago at a cost of $6,000. Its current fair market value is $2,000. • Apex stock donated to their church. The stock was acquired in 1990 at a cost of $30,000. Its current fair market value is $15,000. • Microsoft stock donated to the Red Cross. The stock was acquired in 1993 at a cost of $4,000. Its current fair market value is $11,000. • Laura provided free services to the local charity that provides free food to homeless people. The fair value of the services she donated was $7,000. How much can George and Laura deduct for these charitable contributions on their current year's tax return?

a. $8,000

b. $10,000

c. $25,000

d. $36,000

e. $50,000

Question 4

Lynn and Dave, a married couple with a dependent child age 16, have AGI of $300,000 in 2015 and report the following itemized deductions before deducting any floors that may apply: Home mortgage interest $40,000 Taxes 13,000 Charitable contributions 15,000 Medical expenses 11,000 Miscellaneous itemized deductions 2,000 What is the amount of their taxable income for 2015?

a. $232,000

b. $220,000

c. $219,000

d. $207,000