Final Exam > Results Page
final exam score:
90%
Question 1
Incorrect
The Act made all of the following changes to tax rates for individuals except:
(Correct Answer) The top tax rate of 35% has been made permanent.
The 10% bracket has been made permanent.
(You Answered) Marriage penalty relief in the 10% and 15% tax brackets has been made permanent.
High-income taxpayers have a new top tax rate starting in 2013.
Question 2
Correct
Assume a taxpayer is in the 33% tax bracket. The maximum capital gains rate for this taxpayer on Code Sec. 1202 gains is:
Zero
15%
20%
(You Answered) (Correct Answer) 28%
Question 3
Correct
The AMT exemption amount in 2013 for married couples filing jointly is:
$40,375
$51,900
$78,750
(You Answered) (Correct Answer) $80,800
Question 4
Correct
Which change made by the Act applies only through 2013?
(You Answered) (Correct Answer) Parity in transportation fringe benefits
The overall limitation on itemized deductions
The overall limitation on personal exemptions
The exclusion for employer-provided education assistance
Question 5
Correct
Which statement regarding state and local sales taxes is correct?
They can be deducted in addition to state and local income taxes.
(You Answered) (Correct Answer) The deduction opportunity applies only for 2012 and 2013.
The deduction cannot be claimed by anyone in a state with state income taxes.
The deduction is taken above-the-line from gross income.
Question 6
Correct
Which statement about the research credit is not correct?
It has been extended for 2012 and 2013.
It has been expanded to allow for certain pre-acquisition costs.
The credit is 20% of increased research expenditures.
(You Answered) (Correct Answer) The credit has been made permanent.
Question 7
Correct
Under the Act, the limit for the refundable child tax credit is:
Eliminated
Retained temporarily at the 2012 level for 2013
(You Answered) (Correct Answer) Retained permanently
Increased
Question 8
Correct
The Act extends 50% bonus depreciation:
Through December 31, 2012
(You Answered) (Correct Answer) Through December 31, 2013
Through December 31, 2017
Permanently
Question 9
Correct
Two tax credits (the Code Sec. 25C and Code Sec. 25D credits) encourage homeowners to make energy-efficient improvements to their homes. The Act extended:
Both the Code Sec. 25C and Code Sec. 25D credits
(You Answered) (Correct Answer) Only the Code Sec. 25C credit
Only the Code Sec. 25D credit
Neither credit (both expired at the end of 2011)
Question 10
Correct
Contributing to a Coverdell ESA provides all of the following except:
(You Answered) (Correct Answer) A deduction for contributions
Tax-free withdrawals for primary, secondary, or higher education
A deferral of tax on account earnings
An opportunity to have a business contribute on behalf of employees
Question 11
Correct
Which statement applies to the deduction for tuition and fees in 2012 and 2013?
The AGI limit is adjusted for inflation.
(You Answered) (Correct Answer) The deduction limit is $2,000 or $4,000, depending on AGI.
The deduction and an education credit can be claimed with respect to the same higher education costs.
The taxpayer must itemize to take this deduction.
Question 12
Correct
Which statement about the American opportunity tax credit is correct?
It is nonrefundable.
The maximum credit is $1,000.
(You Answered) (Correct Answer) It applies for expenses in the first four years of higher education.
It has been made permanent.
Question 13
Correct
In which way is the lifetime learning credit better than the American opportunity tax credit?
(You Answered) (Correct Answer) It can be claimed for any higher education.
The lifetime learning credit has higher MAGI limits than those for the American opportunity tax credit.
The lifetime learning credit amount is higher than the amount of the American opportunity tax credit.
It is fully refundable, whereas the American opportunity tax credit is only partially refundable.
Question 14
Correct
What is the deadline for employers to implement new withholding tables for 2013?
January 1, 2013
(You Answered) (Correct Answer) February 15, 2013
March 31, 2013
April 15, 2013
Question 15
Correct
The exclusion for qualified small business stock is limited to ____ times the taxpayer’s basis in the stock or $____ million.
(You Answered) (Correct Answer) 10; 10
20; 20
Zero; 10
10; 50
Question 16
Correct
Starting in 2014, the dollar limit for expensing is set to revert to $_______ with the phaseout starting at $________.
10,000; 50,000
15,000; 75,000
(You Answered) (Correct Answer) 25,000; 200,000
$125,000; 500,000
Question 17
Correct
Which business-related incentive has not been extended through 2013?
50% bonus depreciation
Work opportunity tax credit
New markets credit
(You Answered) (Correct Answer) Expensing of environmental remediation costs in “brownfields”
Question 18
Correct
The federal estate tax rate in 2013 is:
35%
(You Answered) (Correct Answer) 40%
45%
55%
Question 19
Correct
Which statement concerning the federal estate tax exclusion amount is correct?
(You Answered) (Correct Answer) It will be indexed for inflation.
It is fixed at $3.5 million.
It is fixed at $1 million.
It is not portable.
Question 20
Incorrect
The lifetime gift tax exclusion amount in 2013 is:
$13,000
(You Answered) $14,000
$1 million
(Correct Answer) $5 million