ACCT 553 help A Guide to career/Snaptutorial ACCT 553 help A Guide to career/Snaptutorial | Page 18

1. (TCO E) For federal tax purposes, royalty income not derived in
the ordinary course of a business is classified as:
2. (TCO F) When comparing corporate and individual taxation, the
following statements are true, except:
3. (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
4. (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:
5. (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
6. (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:
7. (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?
8. (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?
9. (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?