ACCT-104- CHAPTER 1-HOMEWORK- QUIZ - EXTRA CREDIT

Which of the following are permitted filing statuses for taxpayers filing a Form 1040?

Married filing jointly. Single. Head of household. All of the above are permitted.

Alice is an employee of Valley Company. Alice properly completed her Form 1040 tax return and received a refund from the IRS of $1,244. Alice had income tax withholdings during the year of $4,782. Alice's tax liability for the year was:

$3,538.

The tax liability for a married couple with taxable income of $73,209 is

$8,399.

Tameka has taxable income of $97,075 that is taxed as follows: $9,700 × 10% =$970.00 ($39,475 − $9,700) × 12% = 3,573.00 ($84,200 − $39,475) × 22% = 9,839.50 ($97,075 − $84,200) × 24% = 3,090.00 Total tax liability$17,472.50 Her average tax rate is:

18%.

Xavier is single and has taxable income of $47,375. His marginal tax rate is

22%.

Tameka has taxable income of $97,075 that is taxed as follows: $9,700 × 10% =$970.00 ($39,475 − $9,700) × 12% = 3,573.00 ($84,200 − $39,475) × 22% = 9,839.50 ($97,075 − $84,200) × 24% = 3,090.00 Total tax liability$17,472.50 Her marginal tax rate is:

24%.

Which of the following statements is true?

Compensation for services includes bonuses and severance pay.

Under the provisions of Circular 230, paid tax preparers must

Inform the client if the client has made an error in a document submitted to the IRS.

Which of the following is a statutory source of tax authority?

Internal Revenue Code.

Which of the following types of Regulations is the strongest tax authority?

Legislative.

Which of the following statements is correct?

Paid preparers must inform the client if the client has made an error in a document submitted to the IRS.

Jake earned $15,000 and paid $1,500 of income tax, while Jill earned $40,000 and paid $6,000 of income tax. The tax rate structure they are subject to is:

Progressive.

Sallie earned $85,000 and paid $5,950 of income tax; Theodore earned $33,000 and paid $2,310 of income tax. The tax rate structure they are subject to is:

Proportional.

Yvonne earned $75,000 and paid $4,500 of income tax; Jasmine earned $43,000 and paid $3,000 of income tax. The tax rate structure they are subject to is:

Regressive.

Which of the following is an example of a regressive tax?

Social security tax.

Victoria determined her tax liability was $6,451. Her employer withheld $6,145 from her paychecks during the year. Victoria's tax return would show

Tax due of $306.

With respect to the income tax formula, which of the following statements is incorrect?

The simplified income tax formula is only applicable to taxpayers with taxable income less than $100,000.

For equivalent amounts of taxable income, the total tax liability of a single individual:

Will be more than married filing jointly.