Chapter 4 MC

Question 1

Which of the following statements concerning elements of personal income taxation is correct?

Answer 1

The range of taxable income over which specific tax brackets will be applied depends on the filing status of the particular taxpayer(s).

Question 2

In order to be treated as a “qualifying child” of the taxpayer for dependency exemption purposes, an individual must generally meet which of the following tests?

Answer 2

The individual must have the same principal place of abode as the taxpayer for more than half of the taxable year.

Question 3

How many personal exemptions is a blind, unmarried taxpayer, aged 65 or older, who is not subject to the exemption phaseout rules, entitled to?

Answer 3

The taxpayer is entitled to one personal exemption.

Question 4

All the following statements concerning personal and dependency exemptions are correct EXCEPT

Answer 4

Personal and dependency exemptions are subject to a phaseout for all taxpayers for the 2011 and 2012 tax years.

Question 5

All the following statements concerning the time for filing tax returns are correct EXCEPT

Answer 5

A corporation’s tax return is generally due on the fifteenth day of the fourth month following the close of the tax year.