DeVry Chicago ACCT 346 week 1 Homework – ES Federal tax

1.
(TCO 1) Which, if any, is NOT one of Adam Smith’s canons of taxation?
(Points : 2)
·
Economy
·
Neutrality
·
Equality
·
Convenience
·
None
of the above

2.
(TCO 1) Which, if any, of the following is a typical characteristic of
an ad valorem tax on personality? (Points : 2)

·
Taxpayer
compliance is greater for personal use property than for business use property.
·
The
tax on automobiles sometimes considers the age of the vehicle.
·
Most
states impose a tax on intangibles.
·
The
tax on intangibles generates considerable revenue since it is difficult for
taxpayers to avoid.
·
None
of the above

3.
(TCO 1) Federal tax legislation generally originates in what body?
(Points : 2)
·
Internal
Revenue Service
·
Senate
Finance Committee
·
House
Ways and Means Committee
·
Senate
floor
·
None
of the above

4.
(TCO 8) Allowing excess capital losses to be carried over to other years
can be justified (Points : 2)
·
on
political considerations.
·
as
mitigating the effect of the annual accounting period concept.
·
by
social considerations.
·
as
promoting administrative feasibility.
·
None
of the above

5.
(TCO 8) Which, if any, of the following items is a deduction for AGI?
(Points : 2)
·
Moving
expenses
·
Union
dues
·
Child
support payments
·
Tax
return preparation fee
·
None
of the above

6.
(TCO 8) In 2012, Barney had the following transactions:
Salary: $70,000
Capital loss from a stock investment: ($4,000)
Moving expense to change jobs: ($10,000)
Received repayment of an interest-free loan he
made to his brother in 2003: $5,000
Property taxes on personal residence: $2,000

Barney’s AGI is (Points : 2)
·
$55,000.
·
$56,000.
·
$65,000.
·
$67,000.
·
None
of the above

7.
(TCO 8) In which, if any, of the following situations may the individual
NOT be claimed as a dependent of the taxpayer? (Points : 2)
·
A
former spouse who lives with the taxpayer (divorce took place two years ago)
·
A
stepmother who does not live with the taxpayer and is a citizen and resident of
Peru
·
A
married daughter who lives with the taxpayer
·
A
half brother who does not live with the taxpayer and is a citizen and resident
of Canada
·
An
unrelated party who lives with the taxpayer

8.
(TCO 9) Aidan files his tax return 65 days after the due date. Along
with the return, Aidan remits a check for $6,000, which is the balance of the
tax owed. Disregarding the interest element, Aidan’s total failure to file and
to pay penalties is (Points : 2)
·
$90.
·
$810.
·
$900.
·
$990.
·
None
of the above

9.
(TCO 11) In § 212(1), the number (1) stands for the (Points : 2)
·
section
number.
·
subsection
number.
·
paragraph
designation.
·
subparagraph
designation.
·
None
of the above

10. (TCO 12) Which of the following is
characteristic of the IRS audit procedure? (Points : 2)
·
The
percentage of individual income tax returns that the IRS audits has
significantly increased over the years.
·
An
office audit takes place at the office of the taxpayer.
·
One of the factors that leads to an audit is the information
provided by informants.
·
Only
IRS special agents can conduct field audits.
·
None
of the above