ACC3090-Amy makes the following gifts in the year 2016

Subject: Business    / Accounting
Question
Question 2

Amy makes the following gifts in the year 2016:

$25,000 cash gift to her husband:

a.

$25,000 is taxable because you cannot gift money to your spouse

b.

Only $11,000 is taxed due to the $14,000 annual gift exclusion

c.

None is taxable due to $14,000 annual gift exclusion and $11,000 marital deduction

d.

None is taxable as money transferred to a spouse is never subject to the gift tax

Question 4

Amy makes the following gifts in the year 2016:

Gift of a personal automobile valued at $40,000 to her adult son

a.

$40,000 is taxable because you cannot gift money to your child

b.

Only $26,000 is taxed due to the $14,000 annual gift exclusion

c.

None is taxable due to $14,000 annual gift exclusion and $26,000 marital deduction

d.

None is taxable s money transferred to a child is never taxable

Question 5

Determine Betty’s adjusted gross income for the year given the following information:

Salary: $78,000

Child care credit: $1,000

Personal and Dependency Exemptions: $12,000

Investment interest: $4,000

IRA contribution: $5,500

Municipal bond interest: $500

Federal income taxes withheld: $6,000

Itemized Deductions: $15,300

a.

$82,500

b.

$82,000

c.

$76,500

d.

$77,000

Question 6

Determine Betty’s taxable income for the year given the following information:

Salary: $78,000

Child care credit: $1,000

Personal and Dependency Exemptions: $12,000

Investment interest: $4,000

IRA contribution: $5,500

Municipal bond interest: $500

Federal income taxes withheld: $6,000

Itemized Deductions: $15,300

a.

$55,200

b.

$54,700

c.

$49,700

d.

$49,200