Income Tax Fundamentals 2016 34th Edition-Test Bank

1. Which of the following is not a goal of the tax law?
a.  Encouraging certain social goals such as contributions to charity.
b.  Encouraging certain economic goals such as a thriving business community.
c.  Encouraging smaller families.
d.  Raising revenue to operate the government.
e.  None of the above are goals of the tax law.
ANSWER:   c
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-01 – LO:1-01
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CC3O
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJS-GO3U-YQBW-GE3S-G3TS-GWSU-CPTS-8RSU-EAJT-GOSU-Q3MR-CESS-RA3T-GFTD-13TU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

2. Which one of the following provisions was passed by Congress to meet a social goal of the tax law?
a.  The deduction for job hunting expenses.
b.  The charitable deduction.
c.  The moving expense deduction for adjusted gross income.
d.  The deduction for soil and water conservation costs available to farmers.
e.  None of the above.
ANSWER:   b
RATIONALE:   Deductions for job hunting expenses, moving expenses, and soil and water conservation costs for farmers are economic goals.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-01 – LO:1-01
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CC3Z
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJ1-GY4U-NPT1-C31U-RQBI-GOSU-YQBZ-CRSU-YQBS-GOSU-Y3UR-GASS-KCJA-COHG-NAJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

3. List two general objectives of the tax code.
ANSWER:   The tax code promotes social goals, economic goals and raising revenue.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Subjective Short Answer
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-01 – LO:1-01
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CPTZ
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMMG-GITU-CAUN-GJTU-EQJU-8YSS-NCTU-CESU-EQBT-GOSU-G3DG-CRSU-O3BS-CC4S-EQJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

4. Mark a “Yes” to each of the following if it is an objective of the tax code. Otherwise mark with a “No.”
a. To provide a car to each American.
b. To promote giving to charities.
c. To encourage taxpayers to send their children to college.
d. To raise money to operate the government.
e. To promote the use of solar energy.
ANSWER:   a. No
b. Yes
c. Yes
d. Yes
e. Yes
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Subjective Short Answer
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-01 – LO:1-01
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CPTS
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJ1-8YHD-QQJ3-CT1U-KCMF-GYSS-KA3T-CRSU-Q3DG-GOSS-ECBA-GCSS-E3JW-GH4U-YPBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

5. The US federal tax law’s sole purpose is to raise revenue.​
a.  True
b.  False
ANSWER:   False
RATIONALE:   The tax law has many goals including raising revenue.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-01 – LO:1-01
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CPJA
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMMD-CE4U-GCUB-GITD-Q3BI-GESS-E3BS-CRSU-OP5G-GOSU-OCUD-COSU-ECTT-G7OU-O3MG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

6. Which of the following is not a goal of the tax law?
a.  ​Ensuring that all persons pay the same amount of tax.
b.  ​Economic goals such as reduction in unemployment.
c.  ​Social goals such as lowering the cost of adoption.
d.  ​Raise adequate revenue to operate the government.
ANSWER:   a
RATIONALE:   Raising revenue, social and economic goals are all purposes of the tax law.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-01 – LO:1-01
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CPKG
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMMN-CW3S-NAMG-GFUD-Y3JA-GYSU-QCB1-CESS-CP5R-GOSU-EC3S-GWSS-KCTZ-CO3D-1P3I-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

7. A corporation is a reporting entity but not a tax-paying entity.
a.  True
b.  False
ANSWER:   False
RATIONALE:   A corporation is subject to income tax and must report income annually.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CTBO
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMMB-GO3D-YCDG-GTUD-NQJU-GWSU-YA3A-CESS-ECBU-GOSU-QQJU-8YSU-YPJ3-GITU-RCBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

8. Partnership capital gains and losses are allocated separately to each of the partners.
a.  True
b.  False
ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CTBZ
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJO-GJOU-1AMG-GW4U-Y3MG-GWSS-KP31-CESU-QP3A-GOSS-RQBZ-GOSS-NQJT-GH3S-EAMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

9. Wesley owns and operates the Cheshire Chicken Ranch in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:
a.  Form 1040EZ
b.  Form 1040A
c.  Form 1040
d.  Form 1065
e.  None of the above
ANSWER:   c
RATIONALE:   Self-employed taxpayers are not permitted to file using Form 1040-EZ of Form 1040A.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CC3S
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJ1-GA3U-YAJ3-CW3U-YPJI-GRSU-YPUD-8RSU-KC33-GOSS-NC5D-CRSS-GCJW-8FOU-EAJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

10. Which of the following forms may be filed by individual taxpayers?
a.  Form 1040
b.  Form 1041
c.  Form 1065
d.  Form 1120
e.  None of the above
ANSWER:   a
RATIONALE:   Form 1041 is for trusts, Form 1065 is for partnerships, and Form 1120 is for corporations.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CC3I
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJ1-G3OS-RQBT-GO3U-KPDB-CASU-G3MD-8RSU-EPJ1-GOSS-CPTA-GHSU-CPMR-8YHU-KCBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

11. Partnerships:
a.  Are not taxable entities.
b.  Are taxed in the same manner as individuals.
c.  File tax returns on Form 1120.
d.  File tax returns on Form 1041.
ANSWER:   a
RATIONALE:   Partnerships are reporting entities but not taxable entities. The income flows through and is taxed to the partners.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CC3W
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJT-CPUD-QCTI-CPUG-NQJZ-GCSU-OCTO-8RSS-GQBA-GOSU-YCDD-GRSS-NPBU-COAU-NQJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

12. Which of the following is correct?
a.  An individual is a reporting entity but not a taxable entity.
b.  A partnership is a taxable entity and a reporting entity.
c.  A corporation is a reporting entity but not a taxable entity.
d.  A partnership is a reporting entity but not a taxable entity.
ANSWER:   d
RATIONALE:   Individuals and corporations must report and are taxed; whereas partnerships only report but are not taxed (the partners are taxed on their share of the partnership’s income, gains, deductions and losses).
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CCNN
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMMF-GPOU-GCUR-GF1D-RPDR-CWSU-KCDF-CRSU-RPUB-GOSS-CQMN-CASU-K3DF-CO4U-RPDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

13. Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:
a.  Salary income.
b.  Joint return status.
c.  Withholding on wages.
d.  Self-employment income.
ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CCNB
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJI-CFOU-CA3I-GB1G-EPB1-GESU-QPTA-CESS-CPT1-GOSS-KCDR-GOSU-KQBS-CRHD-1CBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

14. Partnership income is reported on:
a.  Form 1040PTR
b.  Form 1120S
c.  Form 1040X
d.  Form 1065
ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CCB3
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJZ-CEAD-G3TW-CP1U-QATU-GESU-N3MN-8RSS-G3BZ-GOSU-EPMF-GRSS-CCBT-CAHD-GA33-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

15. Amended individual returns are filed on:
a.  Form 1040X
b.  Form 1120S
c.  Form 1041
d.  Form 1040Amend
ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CCBA
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJW-8R3U-GCBU-GOAG-GPT3-CRSU-1AUB-8RSU-OCB3-GOSU-Y3B3-COSU-CPDB-GY3U-OCUG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

16. Depending on the amounts of income and other tax information, some individuals may report their income on:
a.  Form 1040A
b.  Form 1065
c.  Form 1120
d.  Form 1041
ANSWER:   a
RATIONALE:   Depending on circumstances, an individual may file using Forms 1040-EZ, 1040A or 1040.
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CCNG
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMMD-CC5S-K3BA-8R5D-GAT1-GYSU-QAUG-CESS-CAUD-GOSU-NA3O-COSU-YQMG-GO3S-NPJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

17. If an individual wishes to amend his individual tax return, he will make the amendment using what form?
a.  Form 1040A
b.  Form 1040X
c.  Form 1120
d.  Schedule K-1
e.  None of the above
ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CCNF
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJZ-GFUG-NPTS-CE3S-NPDN-GCSS-GCJ3-CESU-CC3A-GOSS-G3UF-CCSU-O3MN-GAHS-KAT1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

18. Mark each of the following as a taxable entity, a reporting entity, or both:
a. Individuals
b. Corporations
c. Partnerships
ANSWER:   a. Taxable and reporting entity
b. Taxable and reporting entity
c. Reporting entity
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Subjective Short Answer
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CPTI
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJS-GRHU-R3JW-GYHD-RPB1-CASS-CPJT-8RSU-GQMG-GOSS-GAJW-8YSU-OPMN-8Y4U-KA3I-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

19. List if a form is used for an individual, a corporation, or a partnership tax return.
a. Form 1065
b. Schedule A, Itemized Deductions
c. Form 1040
d. Form 1120
e. Schedule B, Interest and Dividends
ANSWER:   a. Partnership
b. Individual
c. Individual
d. Corporation
e. Individual
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Subjective Short Answer
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CPTW
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMMD-CA4D-QAMG-CWAU-YCJ3-GWSS-RP3T-8RSU-OCT1-GOSS-ECUN-GASS-CQMR-CJUD-NAUB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

20. Distinguish between reporting entities and taxable entities and give examples of each.
ANSWER:   A partnership is an example of a reporting entity. It pays no tax, but must report partnership income or loss and the allocation of income or loss to partners. Individuals, corporations, estates, and trusts are examples of taxable entities whose income is subject to federal income taxation.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   ITF.WABG.16.LO:1-02 – LO:1-02
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – AK – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   9/2/2015 1:33 PM
DATE MODIFIED:   9/2/2015 1:33 PM
QUESTION ID:   JFND-GO4G-EPNW-CPKN
QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CCAD-1QJI-GO5U-Q3J1-GO41-4A3A-GWH1-4ATT-GR4N-4QBI-8R3N-4PBT-GTUD-GCDB-C3DI-GWN8-EPRW-EMJ1-GO5G-CPT1-8YAS-ECTO-GASU-R3JT-CESS-GQBS-GOSS-NAUD-GESU-KCDR-CAHU-GAT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE