- Study guides, Class notes & Summaries

Federal Tax Exam 1 UPDATED ACTUAL Exam Questions and CORRECT Answers Example: In 2020, taxpayer placed in service $2,800,000 of § 179 property what's the amount under 179 immediate expensing? - CORRECT ANSWER - [$1,040,000 - ($2,800,000 - $2,590,000)] [$1,040,000 - $210,000] = $830,000 Schedule ____ is Trade or business income - CORRECT ANSWER - C

Federal Tax Exam 1 UPDATED Exam Questions and CORRECT Answers 1-Taxes influence business decisions such as where a business should locate or how a business should be structured. - CORRECT ANSWER - True 2-Tax policy rarely plays an important part in presidential campaigns. - CORRECT ANSWER - Fals

Federal Tax Exam 2 UPDATED Exam Questions and CORRECT Answers Nontaxable Fringe Benefits - CORRECT ANSWER - - Specifically identified in the code - Employee excludes benefit from taxable income - employer deducts cost when benefit is paid Group Term life insurance - CORRECT ANSWER - - Fringe Benefit - employer paid premiums on up to $50,000 group term life insurance policy are excluded from employees' incom

Federal Tax Exam 2 UPDATED ACTUAL Exam Questions and CORRECT Answers What business deduction is below the line - CORRECT ANSWER - QBI deductions What is the limit on social security taxes - CORRECT ANSWER - 168,600 What is the income minimum for the additional medicare taxes - CORRECT ANSWER - 200,000

Federal Income Tax Exam 1 ACTUAL Exam Questions and CORRECT Answers the true ancestor of modern double entry accounting is the method of __, thanks to Luca Pacioli's publicity of its details - CORRECT ANSWER - Venice publicizing double-entry accounting - CORRECT ANSWER - Franciscan friar Luca Pacioli is acknowledged for

Federal Income Tax. Exam 1 (chapters 1-4) UPDATED ACTUAL Exam Questions and CORRECT Answers under a ___ tax rate structure, the tax rate increases as the taxpayer's income increases - CORRECT ANSWER - progressive Under a ___ tax rate structure, the same tax rate applies to all taxpayers - CORRECT ANSWER - proportional

Federal Tax Accounting (Exam 1) UPDATED Exam Questions and CORRECT Answers The Business Purpose Concept means I. that the economic purpose of the transaction must exceed the tax avoidance motive. II. that the taxpayer's dominant motive for an expenditure is to reduce taxation.. a. Only statement I is correct. b. Only statement II is correct. c. Both statements are correct. d. Neither statement is correct. - CORRECT ANSWER - a. Only statement I is correct

Federal Taxation - Final Exam Review UPDATED Exam Questions and CORRECT Answers FICA/self employment tax - CORRECT ANSWER - 6.2% tax rate matched by employer for total of 12.4% to government; salary greater tha $118,500 does not apply where do tax bills begin? - CORRECT ANSWER - the House of Representatives--the House Ways and Means Committee

Federal Tax Exam 3 UPDATED ACTUAL Exam Questions and CORRECT Answers Section 162 - CORRECT ANSWER - - all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business ex: what is paid by check, cash, or credit card Ordinary - CORRECT ANSWER - normal, usual, and customary for the business - doesn't have to be frequent/often but it makes sense to incur the expens

Federal Taxation II Exam 1 UPDATED ACTUAL Exam Questions and CORRECT Answers The Federal tax law is the vehicle for accomplishing many objectives of the nation such as: - CORRECT ANSWER - -Raising revenue: the major objective of the tax system but not the sole objective -Economic Considerations -Social Considerations -Equity (Fairness) Considerations