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DEVRY ACCT 553 Week 5 Quiz
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ACCT 553 Week 5 Quiz
(TCO E) For federal tax purposes, royalty income not derived in the ordinary course
of a business is classified as:
(TCO F) When comparing corporate and individual taxation, the following
statements are true, except:
(TCO H) Al and Amy file a joint return for the 2012 tax year. Their adjusted gross
income is $80,000. They had a net investment income of $8,000. In 2012, they had
the following interest expenses:
Personal credit card interest: $4,000
Home mortgage interest: $8,000
Investment interest (on loans used to buy stocks): $10,000
(TCO B) Charitable contribution deductions for capital gains property made by
individuals without a reduction for long-term capital gains to public charities are
limited to:
(TCO A) The following taxes were paid by Tim:
Real estate taxes on his home: $2,000
State income taxes: $900
State gasoline tax (personal use of automobile): $150
(TCO F) Hoover, Inc. had gross receipts from operations of $230,000, operating and
other expenses of $310,000, and dividends received from a 45 percent-owned
domestic corporation of $120,000. Hoover’s tax position for the year is:
(TCO G) All of the outstanding stock of a closely held C corporation is owned equally
by David Smith and Steve Bufusno. In 2012, the corporation generates taxable
income of $30,000 from its active business activities. In addition, it earns $20,000 of
interest from investments and incurs a $40,000 loss from a passive activity. How
much income does the C corporation report for 2012?
(TCO G) Mike, who is single, has $100,000 of salary, $15,000 of income from a limited
partnership, and a $30,000 passive loss from a real estate rental activity in which he
actively participates. His modified adjusted gross income is $100,000. Of the $30,000
loss, how much is deductible?
(TCO F) Pam owns a sole proprietorship, and Kevin is the sole shareholder of a C
(regular) corporation. Each business sustained a $16,000 operating loss and a
$2,500 capital loss for the year. Evaluate how these losses will affect the taxable
income of the two owners?
(TCO G) Briefly (1) define and (2) discuss the purpose and impact of each of the
following:
net operating loss
b. at-risk rules
tax shelter

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Devry acct 553 week 5 quiz

  • 1. DEVRY ACCT 553 Week 5 Quiz Check this A+ tutorial guideline at http://www.assignmentcloud.com/acct- 553/acct-553-week-5-quiz For more classes visit http://www.assignmentcloud.com ACCT 553 Week 5 Quiz (TCO E) For federal tax purposes, royalty income not derived in the ordinary course of a business is classified as: (TCO F) When comparing corporate and individual taxation, the following statements are true, except: (TCO H) Al and Amy file a joint return for the 2012 tax year. Their adjusted gross income is $80,000. They had a net investment income of $8,000. In 2012, they had the following interest expenses: Personal credit card interest: $4,000 Home mortgage interest: $8,000 Investment interest (on loans used to buy stocks): $10,000
  • 2. (TCO B) Charitable contribution deductions for capital gains property made by individuals without a reduction for long-term capital gains to public charities are limited to: (TCO A) The following taxes were paid by Tim: Real estate taxes on his home: $2,000 State income taxes: $900 State gasoline tax (personal use of automobile): $150 (TCO F) Hoover, Inc. had gross receipts from operations of $230,000, operating and other expenses of $310,000, and dividends received from a 45 percent-owned domestic corporation of $120,000. Hoover’s tax position for the year is: (TCO G) All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2012, the corporation generates taxable income of $30,000 from its active business activities. In addition, it earns $20,000 of interest from investments and incurs a $40,000 loss from a passive activity. How much income does the C corporation report for 2012? (TCO G) Mike, who is single, has $100,000 of salary, $15,000 of income from a limited partnership, and a $30,000 passive loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $100,000. Of the $30,000 loss, how much is deductible? (TCO F) Pam owns a sole proprietorship, and Kevin is the sole shareholder of a C (regular) corporation. Each business sustained a $16,000 operating loss and a $2,500 capital loss for the year. Evaluate how these losses will affect the taxable income of the two owners? (TCO G) Briefly (1) define and (2) discuss the purpose and impact of each of the following: net operating loss b. at-risk rules tax shelter