CHAPTER 3–TAX FORMULA AND TAX

| February 14, 2018

23.
For the year a spouse dies, the surviving spouse
is considered married for the entire year for income tax purposes.

True False

24.
In determining whether the support test is met for
dependency exemption purposes, only the taxable portion of a scholarship is
considered.

True False

25.
Albert buys his mother a used car. For purposes of
meeting the support test, Albert cannot count the cost of the used car.

True False

26.
Even if the individual does not spend funds that
have been received from another source (e.g., interest on municipal bonds), the
unexpended amounts are considered for purposes of the support test.

True False

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35.
Using borrowed funds from a mortgage on her home,
Leah provides 52% of her own support, while her sons furnished the rest. Leah
can be claimed as a dependent under a multiple support agreement.

True False

36.
Roy and Linda were divorced in 2009. The divorce
decree awards custody of their children to Linda but is silent as to who is
entitled to claim them as dependents. If Roy furnished more than half of their
support, he can claim them as dependents in 2010.

True False

37.
In 2010, Hal furnishes more than half of the
support of his ex-wife and her father, neither of whom lives with him. The
divorce occurred in 2009. Hal may claim the father-in-law but not the ex-wife
as dependents.

True False

38.
After her divorce, Hope continues to support her
ex-husband’s sister, Cindy, who does not live with her. Hope cannot
claim Cindy as a dependent.

True False

39.
Darren, age 20 and not disabled, earns $4,500
during 2010. Darren’s parents cannot claim him as a dependent unless he
is a full-time student.

True False

40.
Keith, age 17 and single, earns $4,000 during
2010. Keith’s parents can claim him as a dependent even if he does not live
with them.

True False

41.
Sarah furnishes more than 50% of the support of
her son and daughter-in-law who live with her. If the son and daughter-in-law
file a joint return, Sarah cannot claim them as dependents.

True False

42.
Kim, a resident of Oregon, supports his parents
who are residents of Canada but citizens of Korea. Kim cannot claim his parents
as dependents.

True False

43.
Carolyn lives in New York and supports her niece
who is a Canadian citizen that resides in Quebec, Canada. Carolyn may
claim her niece as a dependent.

True False

44.
Stealth taxes are directed at higher income
taxpayers. True False

45.
The IRS facilitates the filing of income tax
returns by persons in the U.S. illegally through the issuance of ITINs.

True False

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