Test Bank SWFT Comprehensive COMPUTING THE TAＸ.docVIP

CHAPTER 3 COMPUTING THE TAX Instructor: The test items in both the print Test Bank and ExamView test-creation software are numbered by question type within each chapter. Thus, users of ExamView can more easily preview their selections using the printed Test Bank in the same numbering system. Learning Objective, Level of Difficulty, Estimated Time to Completion, and the AACSB’s and AICPA’s Core Competencies for each test item are located within the item itself. Status: Q/P Question/ Present in Prior Problem Topic Edition Edition TRUE OR FALSE 1 Level of current income tax rates Unchanged 1 2 Definition of “gross income” Unchanged 2 3 Income tax formula: distinction between deductions New for and from AGI 4 Above the line deductions: meaning of New 5 Page 1 deductions: meaning of New 6 Exclusions: Form 1040 treatment New 7 Income tax formula: placement of taxable income New 8 Income tax formula: relevance of filing status New 9 Income taxation and example of global approach Unchanged 3 10 Effect of AGI on the medical deduction Unchanged 4 11 Filing status: surviving spouse versus married filing Unchanged 5 separate 12 Additional standard deductions: single and married Unchanged 6 amounts 13 Standard deduction and adjustment for inflation Unchanged 7 14 Standard deduction: property taxes New 15 Standard deduction: different types New 16 Additional standard deduction of a dependent Unchanged 8 17 Itemized deductions versus standard deduction New 18 Basic and additional standard deductions New 19 Itemized deductions or standard deduction Unchanged 11 20 Itemized deductions or standard deduction New 21 Itemized deductions or standard deduction New 22 Standard deduction requirements when married Unchanged 15 persons file separately 23 Standard deduction: year of death Unchanged 16 24 Dependent’s standard deduction Unchanged 17 Status: Q/P Question/