covers exemptions resulting from the status of the taxpayer and exemptions based on the nature of income OA. Section 10 OB. Section 8 OC Section 1 OD. Section 11 Previous page

A major objective of MACRS is to: O A. Ensure that the amount of cost recovery for tax purposes will be the same as book depreciation. B. Reduce the amount of the cost recovery deduction on businesses tax returns. C. Help companies achieve a faster write-off of their capital assets. D. Require companies to use the actual economic lives of assets in calculating cost recovery for tax purposes.

Question 4: Taxable earnings for Social Security tax are always the same as taxable earnings for federal income tax withholding. Answer: A. O True В. O False

6. There is no taxable income until such income is recognized. Taxable income is recognized when the (BEQ) a. taxpayer fails to include the income in his income tax retum. b. income has been actually received in money or its equivalent. income has been received, either actually or constructively. d. transaction that is the source of the income is consummated. CS Scanned with CamScanner

Which of the following accurately describes when a taxpayer may report capital gain/loss transactions directly on Schedule D instead of using Form 8949?

Question 1: Which of the following appears on the W-3 Form but does not appear on the W-2 Form? Answer: A. O Federal income tax withheld В. O Kind of payer С. Social Security wages D. Dependent care benefits

Which of the following statements are NOT correct? i. A registered taxpayer can claim input tax credit for items used for its exempt activities.  ii. A registered taxpayer can claim input tax credit for items used for zero-rated  activities.   iii. The VAT rate Exempt supplies  is 0%. iv. Zero-rated goods or services are taxable for VAT at 0%. Question 6Answer a. i, ii and iv b. i, and iii c. i only d. None of the above

Question 8: Which of the following is not a mandatory deduction from gross pay? Answer: A. Federal income tax withholding В. Union dues C. Social Security tax D. Medicare tax B.

Describe the difference between the standard deduction and itemized deductions. How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

+II 01 A taxpayer can only qualify for a deduction for normal tax purposes (ignoring prohibited deductions) if the underlying expenditure or a loss: Meets any one of the requirements of the general deduction formula (!) (!) (ii) Meets more than one of the requirements of the general deduction formula Meets any one of the requirements of the general deduction formula and is also (!) specifically provided for as a deduction (iv) Meets all of the requirements of the general deduction formula (^) (v) Either meets all of the requirements of the general deduction formula or is specifically provided for as a deduction e Home Inser F7 F8 F10 F11 F12 7.