[Link] payment ( s ) is ( are ) included in a at a bank .
Upon John's death , Emma received life
recipient's gross income ? insurance proceeds of $ 60.000 under a group
1. Payment to a graduate assistant for a part-time policy paid for by John's employer . In addition an
teaching assignment at a university . Teaching is employee death benefit of $ 7.500 was paid to
not a requirement toward obtaining the degree . Emma by John's employer .
2. A grant to a PhD . candidate for his participation
in a university-sponsored research project for the 36. With regard to John's and Emma's filing status
benefit of the university . for 1999 , Emma should file
a. As a single individual , and a separate return
a. 1 only should be filed for John unmarried head of
b. 11 only household .
c. both 1 and 11 b. As a qualifying widow , and a separate return
d. Neither 1 nor 11 should be filed for John as married head of
household .
34. Arthur Mends , age 19 , is a full-time student c. As a qualifying widow , and a separate return
at Gordon College and a candidate for the should be filed for John as a single deceased
bachelor's degree . During the year he received the individual .
following payments : d. A joint return including John , as married
taxpayers .
State scholarship for
tuition for ten months $ 4.200 37. How much taxable interest was received by
Loan from college financial John and Emma ?
aid office $ 1.000 a. $ 0
Cash support from parents $2.000 b. $ 300
Cash dividends on qualified c. $ 1.000
Investments $ 500 d. $ 1.300
Cash prize awarded in contest $ 300
$ 8.000 38. How much for group life insurance proceeds
should be excluded from taxable income ?
What is his adjusted gross income ? a. $ 0
a. $ 700. b. $ 5.000
b. $ 800. c. $ 50.000
c. $ 5.000. d. $ 60.000
d. $ 8.000.
39. How much of the employee death benefit
should be excluded from taxable income ?
35. Clark field from 1040 EZ for the 1998 taxable a. $ 0
year . In July 1999 Clark received a state income b. $ 4.500
tax refund of $ 900 , plus interest of $ 10. for c. $ 5.000
overpayment of 1998 state income tax . What d. $ 7500
amount of the state tax refund and interest is
taxable in Clark's 1999 federal income tax 40. Paul is a graduate of State University in
return ? Texas . To pay his tuition , Paul borrowed
a. $ 0 $ 20.000 in local government loans . As an
b. $ 10 inducement to practice his profession in Texas , the
c. $ 900 local government forgives 25% of his loan each
d. $ 910 year he practices in the state . Assuming that Paul
Review Questions practices in Texas for the year , he must
recognize how much gross income ?
Items 36 through 39 are based on the following a. $ 0
data : John Budd , who was 58 at the date of his b. $ 5.000
death on May 1. 1999 , received $ 1.000 interest in c. $ 10.000
1999 on municipal bonds . John's wife , Emma , d. $ 20.000
age 57 , received a $ 300 television set in 1999
as a gift for opening a long-term savings account
42
Items 41 through 44 are based on the following 44. How much should Amy include in taxable "
data : Amy Finch had the following cash receipts other income " for her 1999 state lottery
during 1999 : winnings ?
a. $ 2.400
Interest on Veterans Administration b. $ 1.700
insurance dividends left on deposit c. $ 1.500
with the V.A. $ 10 d. $ 800
Interest on state income tax refund $ 18 Released and Authority Constructed
Questions
Net rent on vacant lot used by a car
dealer ( lessee pays all taxes , insurance
45. Klein , a master's degree candidate at Briar
and other expenses on the lot $ 6.000
University , was awarded a $ 12.000 scholarship
from Briar in 1996 . The scholarship was used to
Advanced rent from lessee of above
pay Klein's 1996 university tuition and fees . Also
vacant lot , such advance to be applied
in 1996 Klein received $ 5.000 for teaching two
against rent for the last two months of
courses at a nearby college . What amount is
the 5-year lease in 2003 $ 1.000
includible in Klein's 1996 gross income ?
a. $ 0
Dividend from mutual insurance
b. $ 5.000
company on a life insurance policy $ 500
c. $ 12.000
d. $ 17.000
Dividend on listed corporation stock;
payment date by corporation was
46. Ace Corporation provides free parking at the
12/30/98 , but Amy received the
company garage to its employees as a part of fringe
dividend in the mail on 1/2/99 $ 875
benefits package . The fair value of the parking is
$200 per month . Because not all of the employees
Gross amount of state lottery winnings
take advantage of the free parking , the company
( Amy spent $ 900 on state lottery
offers them a cash equivalent of $200 per month .
tickets and $ 700 on pari-mutual bets
Assuming that an employee takes advantage of the
during the year at the state off-track
cash option for the entire , how much will he
betting parlor , for which she has full
recognize in gross income for 1999 ?
documentation ) $ 2.400
a. $ 0
b. $ 360
41. How much should Amy include in her 1999
c. $ 1.200
taxable income for interest ?
d. $ 2.400
a. $ 0
b. $ 10
47. Pierre , a United States citizen , was a
c. $ 18
resident of France for all of 1999 .
d. $ 28
During the year he received a total of $ 80.000 , in
foreign earned income and housing allowances .
42. How much should Amy include in her 1999
For 1999 , how much income may Pierre exclude
taxable income for rent ?
from gross income ?
a. $ 7.000
a. $ 70.000
b. $ 8.000
b. $ 72.000
c. $ 6.200
c. $ 74.000
d. $ 6.000
d. $ 80.000
43. How much should Amy report for dividend
income for 1999 ?
a. $ 1.375
b. $ 875
c. $ 500
d. $ 0
43
