Chapter 1 Test
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San Juan College *
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Course
222
Subject
Law
Date
Apr 29, 2024
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docx
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6
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Which of the following is not a goal of the tax law?
a. Raising revenue to operate the government.
b. Encouraging smaller families.
c. Encouraging certain social goals such as contributions to charity.
D. Encouraging certain economic goals such as a thriving business community.
e. None of these choices are goals of the tax law.
Which one of the following provisions was passed by Congress to meet a social goal of the tax law?
A. The moving expense deduction for adjusted gross income.
b. The charitable deduction.
c. The deduction for job hunting expenses.
d. The deduction for soil and water conservation costs available to farmers.
e. None of these choices are correct.
The US federal tax law's sole purpose is to raise revenue.
True
False
Which of the following is not a goal of the tax law?
a. Social goals such as lowering the cost of adoption.
b. Economic goals such as reduction in unemployment.
c. Raise adequate revenue to operate the government.
d. Ensuring that all persons pay the same amount of tax.
A corporation is a reporting entity but not a tax-paying entity.
True
False
Partnership capital gains and losses are allocated separately to each of the partners.
True
False
Wesley has a fairly simple tax situation with moderate wage income and a modest amount of interest income. Wesley wishes to use the easiest possible tax form. He may file:
a.
Form 1040A
b.
Form 1065
c.
Form 1040
d.
Form 1040EZ
e.
None of these choices are correct.
Which of the following forms may be filed by individual taxpayers?
a.
Form 1120
b.
Form 1041
c.
Form 1040
d.
Form 1065
e.
None of these choices are correct.
Partnerships:
a.
Are taxed in the same manner as individuals.
b.
Are not taxable entities.
c.
File tax returns on Form 1041.
d.
File tax returns on Form 1120.
Which of the following is correct?
a.
A partnership is a taxable entity and a reporting entity.
b.
A corporation is a reporting entity but not a taxable entity.
c.
An individual is a reporting entity but not a taxable entity.
d.
A partnership is a reporting entity but not a taxable entity.
Schedule 1 of Form 1040 is used to report:
a.
Salary income.
b.
Joint return status.
c.
Self-employment income.
d.
Withholding on wages.
Partnership income is reported on:
a.
Form 1120S.
b.
Form 1065.
c.
Form 1040X.
d.
Form 1040PTR.
Depending on the amounts of income and other tax information, some individuals may report their income on:
a.
Form 1040A.
b.
Form 1065.
c.
Form 1120.
d.
Form 1041.
e.
None of these choices are correct.
Which of the following is not considered one of the five basic taxable or reporting entities?
a.
Individual
b.
Portfolio
c.
Trust
d.
Partnership
e.
Corporation
Married taxpayers may double their standard deduction amount by filing separate returns.
True
False
An item is not included in gross income unless the tax law specifies that the item is subject to taxation.
True
False
For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.
True
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