Final Exam > Results Page
final exam score:
95%
Question 1
Correct
What is the top tax rate applicable to gain on qualified small business stock acquired in 2011 and held for more than five years?
Zero
15%
25%
(You Answered) (Correct Answer) 28%
Question 2
Correct
The tax tables may be used to figure tax on taxable income only up to _____.
$50,000
(You Answered) (Correct Answer) $100,000
$150,000
$500,000
Question 3
Correct
The Tax Computation Worksheet is used if:
The taxpayer used the tax computation worksheet in the prior year
The taxpayer has any capital gains
(You Answered) (Correct Answer) Taxable income is $100,000 or more
The taxpayer opts to use it
Question 4
Correct
Which of the following rates is not a rate applicable to a long-term capital gain?
0%
15%
(You Answered) (Correct Answer) 35%
28%
Question 5
Incorrect
Max Healy has taxable income of $65,000 that includes a long-term capital gain from a collectible of $20,000. What forms or schedules are required to figure the tax?
The Qualified Dividends and Capital Gain Tax Worksheet
(Correct Answer) Both the Schedule D Tax Worksheet and the Tax Tables
(You Answered) Both the Qualified Dividends and Capital Gain Tax Worksheet and the Tax Table
The Tax Tables
Question 6
Correct
A commercial fisherman who qualifies to use income averaging can average his income from fishing activities over how many years?
(You Answered) (Correct Answer) 3
4
5
10
Question 7
Correct
Which of the following is not true regarding income averaging for farmers and fishermen?
It applies only to farm or fishing income.
(You Answered) (Correct Answer) It applies to both farm/fishing and nonfarm/nonfishing income.
It is figured on Schedule J.
It cannot be used by anyone who is not a farmer or fisherman.
Question 8
Correct
In 2012, a husband and wife have one child, age 2. What is the maximum deduction they can claim for exemptions on a joint return?
$2,000
$3,800
$7,600
(You Answered) (Correct Answer) $11,400
Question 9
Correct
If a taxpayer opts to round off all amounts appearing on the tax return, which of the following amounts is reported as $21 on the return?
(You Answered) (Correct Answer) $21.49
$21.50
$21.51
$21.99
Question 10
Correct
Jerry and Ann Jones are married and keep up a home for their two preschool children, ages 2 and 4. They claim their children as dependents and file a joint return. Their adjusted gross income (AGI) is $42,000. Jerry earned $25,000, and Ann earned $30,000. During the year, they pay work-related expenses of $4,000 for child care for their son, Daniel, at a neighbor’s home and $3,200 for child care for their daughter, Amy, at Pine Street Nursery School. How much of their child care payments is eligible for the child and dependent care credit on their return?
$0
$4,800
(You Answered) (Correct Answer) $6,000
$7,200
Question 11
Correct
All of the following expenses qualify for the child and dependent care credit except:
Day camp
Nursery school
(You Answered) (Correct Answer) Sleepaway camp
Day care facility
Question 12
Correct
During 2012, Ed Hilton installed solar panels on his principal residence at a cost of $12,000. The maximum residential energy credit he can claim is:
$500
$2,000
(You Answered) (Correct Answer) $3,600
$12,000
Question 13
Correct
Which of the following statements about the child tax credit is not correct:
The credit can be claimed in addition to the earned income credit
(You Answered) (Correct Answer) The credit can be claimed for no more than 3 qualifying children
The credit may be refundable
The credit is subject to income limitations
Question 14
Correct
In 2012, the maximum amount of American opportunity credit available to parents with two children in their first four years of college is:
$1,000
$1,800
$2,500
(You Answered) (Correct Answer) $5,000
Question 15
Correct
Which of the following expenses are not eligible for the adoption credit?
(You Answered) (Correct Answer) Surrogate parenting arrangement costs
Court costs
Attorney’s fees
Adoption agency fees
Question 16
Correct
Liz Shepard incurred qualified adoption expenses of $15,000 in 2012 for an adoption that became permanent in 2012. Liz’s AGI for 2012 was $100,000. What is the amount of the credit Liz can take in 2012 for the adoption expenses she incurred? (Assume that Liz did not receive any employer-paid adoption assistance.)
$0
$7,500
(You Answered) (Correct Answer) $12,650
$13,360
Question 17
Correct
With regard to the credit for retirement savings contribution in 2012, which of the following statements is not correct?
The maximum credit is 50% of contributions on elective deferrals up to $2,000.
Married couples filing joint returns cannot claim the credit if AGI exceeds $57,500.
(You Answered) (Correct Answer) The credit may not be claimed with respect to any amounts upon which contributions or deferrals are based.
The credit is claimed on Form 8880.
Question 18
Correct
The earned income credit is available to:
Persons with one qualifying child
Persons with two or more qualifying children
Persons without a qualifying child
(You Answered) (Correct Answer) All of the above
Question 19
Correct
Which statement about the earned income credit in 2012 is not correct?
A higher credit applies for three or more qualifying children.
The excessive income amount is higher than it was in 2011.
(You Answered) (Correct Answer) The credit can be received on an advanced basis.
The credit is fully refundable.
Question 20
Correct
Which statement about the foreign tax credit is not correct?
An itemized deduction can be claimed in lieu of the credit.
There is a minimum holding period for taxes on dividends.
(You Answered) (Correct Answer) The foreign tax credit cannot offset the alternative minimum tax.
There is a simplified foreign tax credit.