Multiple choice

1. Lawrence and Ligia, ages 29 and 28, are married and file a joint return.  In addition to having TWO dependent children (Lindsey and Leonard), Lawrence and Ligia have adjusted gross income (“AGI”) of $100,000 and itemized deductions of $20,000.  What is their taxable income for 2012?

A. $100,000

B. $80,000

C. $72,400

D. $64,800

2. In 2012, Donald, age 16, has $200 of interest from a certificate of deposit and $2,700 from performing landscaping services.  Assume Donald is claimed by his parents as a dependent.  What is Donald’s standard deduction for 2012?

A. $950

B. $2,700

C. $3,000

D. $5,950

3. What is Caroline’s taxable income for 2012? Assume she is single and claimed TWO dependent children, Heidi and Nhi.  Assume further that Caroline’s AGI is $60,000 and that her itemized deductions are $15,000.

A. $60,000

B. $45,000

C. $37,400

D. $33,600

 4. What is Tara’s Taxable Income for 2012? Assume she is single and has no dependents.  Assume further that Tara’s AGI is $125,000 and that her itemized deductions are $3,000.

A. $115,250

B. $118,200

C. $120,00

D. $125,000