DeVry Chicago ACCT 346 week 1 Homework ES Federal tax Acct

1.  (TCO 1) Which, if any, is NOT one of Adam Smith's canons of taxation? (Points : 2) 
• Economy
• Neutrality
• Equality
• Convenience
• None of the above

2.  (TCO 1) Which, if any, of the following is a typical characteristic of an ad valorem tax on personality? (Points : 2) 
• Taxpayer compliance is greater for personal use property than for business use property.
• The tax on automobiles sometimes considers the age of the vehicle.
• Most states impose a tax on intangibles.
• The tax on intangibles generates considerable revenue since it is difficult for taxpayers to avoid.
• None of the above
 
3.  (TCO 1) Federal tax legislation generally originates in what body? (Points : 2) 
• Internal Revenue Service
• Senate Finance Committee
• House Ways and Means Committee
• Senate floor
• None of the above
 
4.  (TCO 8) Allowing excess capital losses to be carried over to other years can be justified (Points : 2) 
• on political considerations.
• as mitigating the effect of the annual accounting period concept.
• by social considerations.
• as promoting administrative feasibility.
• None of the above
 
     

5.  (TCO 8) Which, if any, of the following items is a deduction for AGI? (Points : 2) 
• Moving expenses
• Union dues
• Child support payments
• Tax return preparation fee
• None of the above
 
6.  (TCO 8) In 2012, Barney had the following transactions:
 Salary: $70,000
 Capital loss from a stock investment: ($4,000)
 Moving expense to change jobs: ($10,000)
 Received repayment of an interest-free loan he made to his brother in 2003: $5,000
 Property taxes on personal residence: $2,000

 Barney's AGI is (Points : 2) 
• $55,000.
• $56,000.
• $65,000.
• $67,000.
• None of the above
 
     
7.  (TCO 8) In which, if any, of the following situations may the individual NOT be claimed as a dependent of the taxpayer? (Points : 2) 
• A former spouse who lives with the taxpayer (divorce took place two years ago)
• A stepmother who does not live with the taxpayer and is a citizen and resident of Peru
• A married daughter who lives with the taxpayer
• A half brother who does not live with the taxpayer and is a citizen and resident of Canada
• An unrelated party who lives with the taxpayer
 
8.  (TCO 9) Aidan files his tax return 65 days after the due date. Along with the return, Aidan remits a check for $6,000, which is the balance of the tax owed. Disregarding the interest element, Aidan's total failure to file and to pay penalties is (Points : 2) 
• $90.
• $810.
• $900.
• $990.
• None of the above 

9.  (TCO 11) In § 212(1), the number (1) stands for the (Points : 2) 
• section number.
• subsection number.
• paragraph designation.
• subparagraph designation.
• None of the above
 
   
10.  (TCO 12) Which of the following is characteristic of the IRS audit procedure? (Points : 2) 
• The percentage of individual income tax returns that the IRS audits has significantly increased over the years.
• An office audit takes place at the office of the taxpayer.
• One of the factors that leads to an audit is the information provided by informants.
• Only IRS special agents can conduct field audits.
• None of the above