Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 2, Problem 2MCQ
To determine
Concept Introduction:
As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.
To choose: The item that is not taxable.
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Students have asked these similar questions
1.The definition of gross income in the tax law is:
A. All items specifically listed as income in the tax law
B. All cash payments received for goods provided and services performed
C. All income from whatever source derived
D. All income from whatever source derived unless the income is earned illegally
2.Which of the following is not taxable for income tax purposes?
A.Prizes
B.Severance pay
C.Gifts
D.Partnership income
E.All of the above are taxable
3.All of the following items are taxable to the taxpayer receiving them, except:
A.Life insurance proceeds
B.Unemployment compensation
C.Embezzled funds
D.Prizes
E.Gambling winnings
Which is a correct statement? *
Gains between related parties are
exempt from income tax
Losses between related parties are
deductible
Gains between related parties are
taxable
All of the above
Which is a deductible tax
expense? *
Surcharges and penalties
O Stock transaction tax
Real property tax on business
properties
O Special assessment
Which of the following is NOT a separately stated item? Section 179 expense deduction.
Charitable contributions. Ordinary income (loss) from other partnerships, estates, and trusts.
Capital gains (losses).
Chapter 2 Solutions
Income Tax Fundamentals 2020
Ch. 2 - The definition of gross income in the tax law is:...Ch. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Which of the following items would be included in...Ch. 2 - Malin is a married taxpayer and has three...Ch. 2 - George works at the Springfield Nuclear Plant as a...Ch. 2 - Prob. 9MCQCh. 2 - Which of the following will result in the...
Ch. 2 - Prob. 11MCQCh. 2 - Prob. 12MCQCh. 2 - A 64 -year-old taxpayer retires this year and...Ch. 2 - Prob. 14MCQCh. 2 - Prob. 15MCQCh. 2 - Harry's wife Lila passes away in January of the...Ch. 2 - Nomi is in the highest individual tax bracket and...Ch. 2 - Prob. 18MCQCh. 2 - Prob. 19MCQCh. 2 - Prob. 20MCQCh. 2 - Kelly receives a $40,000 scholarship to Ivy...Ch. 2 - Hillary gets divorced in 2016 and is required to...Ch. 2 - Prob. 23MCQCh. 2 - Prob. 24MCQCh. 2 - Prob. 25MCQCh. 2 - Prob. 26MCQCh. 2 - Prob. 27MCQCh. 2 - Prob. 28MCQCh. 2 - During 2019, Carl (a single taxpayer) has a salary...Ch. 2 - Prob. 30MCQCh. 2 - Alicia loses her job part way through 2019. Her...Ch. 2 - Prob. 32MCQCh. 2 - Prob. 33MCQCh. 2 - Dana and Larry are married and live in Texas. Dana...Ch. 2 - Which of the following conditions need not be...Ch. 2 - Indicate whether each of the items listed below...Ch. 2 - Jane is a roofing contractor. Jane's friend needed...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Linda and Richard are married and file a joint...Ch. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Greg died on July 1,2019 , and left Lea, his wife,...Ch. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - How are qualified dividends taxed in 2019? Please...Ch. 2 - Describe the methods that an individual taxpayer...Ch. 2 - Prob. 20PCh. 2 - Vandell is a taxpayer in the 25 percent tax...Ch. 2 - Karen is a wealthy retired investment advisor who...Ch. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Answer the following questions: Under a 2017...Ch. 2 - Arlen is required by his 2019 divorce agreement to...Ch. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Lydia, a married individual, was unemployed for a...Ch. 2 - During the 2019 tax year, Brian, a single...Ch. 2 - Prob. 34P
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- Which of the following would not usually be treated as a reconciling item in taxable income and accounting income?arrow_forwardIt refers to a flow of wealth to the taxpayer which is not treated as part of gross income for purposes of computing the taxpayer’s taxable income. a. Deductions b. Exceptions c. Exclusions d. Any of the abovearrow_forwardTaxable income is a) gross income less deductions b) total income excluding exempt less deductions and exemptions c) gross income less state taxes, mortgage interest, and charitable contributions d) the sum of everything a person makesarrow_forward
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