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Types of Taxable Income Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What is the formula to calculate the first type of residual income?

Question 2 2. How is residual income related to wealth creation?

Question 3 3. What is the difference between gross income and net income?

Question 4 4. What is the correct term for all money collected on the sale of goods or services?

Question 5 5. Which of the following scenarios would result in the largest federal tax bill?

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Question 6 6. What is the tax bill for an individual who receives a $1,000 muni bond interest payment? The investor lives in the same state that issued the bond, has owned the bond for three years, and is in the 35% tax bracket.

Question 7 7. Which of the following ways will keep your loan from becoming taxable income?

Question 8 8. When a loan becomes taxable income, what is it referred to as?

Question 9 9. Julia works as a contractor for Yummi Company. They provide all of their employees and contractors with free lunch on days that they work in the office. Is Julia receiving a fringe benefit?

Question 10 10. Rupa is a contractor for XYZ Corporation. Luis is an employee for the same company. They both receive an extra $5,000 per year in taxable fringe benefits. XYZ Corporation should report Rupa's benefits on form _____ and Luis' benefits on form _____.

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Question 11 11. Under what circumstances would an injured party owe any tax on a settlement for a physical injury?

Question 12 12. Which of the following types of settlements would NOT be taxable?

Question 13 13. Which of the followings is included in imputed income?

Question 14 14. Which of the followings is true in the context of taxation of imputed income?

Question 15 15. Long-term capital gains taxes apply if a personal residence is sold between _____ and two years of ownership.

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Question 16 16. Which law allows for an exemption from the taxation of profits on the sale of a principal residence?

Question 17 17. Based on the Haig-Simons definition of income, which of these people has the highest income?

Question 18 18. At its most basic level, what is income?

Question 19 19. What could happen if you don't declare income from illegal activities?

Question 20 20. Which of the following could be an illegal deduction, and cannot be claimed on taxes?

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Question 21 21. Which of the following is NOT a common individual deduction?

Question 22 22. Which of the following is NOT an allowable adjustment to gross income?

Question 23 23. What is an estate tax?

Question 24 24. What is the lifetime exemption amount?

Question 25 25. What are capital gains?

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Question 26 26. Emma holds stock in the company where she works. She does not file income taxes on the dividends, reasoning that the company already paid taxes once so she would not pay again. Why is she wrong?

Question 27 27. What is one way musicians earn residual income?

Question 28 28. If Barb's Gas Station had $2,000,000 in revenue from the sales of gas and Barb spent an average of $150,000 per month paying for the gas she sells, what is Barb's gross income?

Question 29 29. Which of the following is TRUE of qualified dividends?

Question 30 30. When do loans become taxable income?

Types of Taxable Income Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 307: Federal Income Taxes  /  Business Courses
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