tax-chapter i4 试题.doc

Prentice Halls Federal Taxation 2016: Ind., 29e (Pope) Chapter I4: Gross Income: Exclusions LO1: Items That Are Not Income 1) Loan proceeds are taxable in the year received in cash. Answer: FALSE Explanation: There is a binding obligation to repay a loan. No income is realized. Page Ref.: I:4-2 Objective: 1 2) Each year a taxpayer must include in gross income the rental value of his or her personal residence. Answer: FALSE Explanation: No income is realized under income tax concepts of income until the home is sold. Page Ref.: I:4-3 Objective: 1 3) Upon the sale of property, a portion of the selling price equal to the basis in the property is considered a return of capital to the seller and is therefore not taxable. Answer: TRUE Explanation: Only net gains or losses on property transactions are taken in account, not gross proceeds. Page Ref.: I:4-3 Objective: 1 4) Which of the following items will result in an inclusion in gross income? A) Receipt of a $10,000 check from the bank. The check is for a student loan. B) Receiving a $10,000 award from a university for high grades and high SAT scores. The award is used to pay tuition. C) Preparing a mechanics tax return in exchange for the mechanic replacing the muffler on your car. D) None of the above will be included in gross income. Answer: C Explanation: This is a taxable exchange of services, and both parties will realize income equal to the value of services received. Page Ref.: I:4-2 and I:4-3 Objective: 1 LO2: Major Statutory Exclusions 1) Many exclusions exist due to the benevolence of Congress or as a result of the governments attempts to encourage particular social behavior. Answer: TRUE Explanation: Most exclusions have been enacted for reasons of social policy or reasons of incentive. Page Ref.: I:4-4 Objective: 2 2) A taxpayer may avoid tax on income by having the payment made to another taxpayer. Answer: FALSE Explanation: The assignment of income doctrine prevents shifting of