Test Bank For Income Tax Fundamentals 2017 35th Edition by Gerald E. Whittenburg

Test Bank For Income Tax Fundamentals 2017 35th Edition by Gerald E. Whittenburg

Chapter 2 Gross Income and Exclusions

1. Noncash items received as income must be included in income at their fair market value.

a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ITF.WABG.15.LO:2-01 – LO:2-01

NATIONAL STANDARDS: United States – BUSPROG: Analytic

STATE STANDARDS: United States – AK – AICPA: FN-Reporting

KEYWORDS: Bloom’s: Knowledge

2. Awards, bonuses, and gifts are all included in gross income.

a. True

b. False

ANSWER: False

RATIONALE: Gifts are excluded from gross income.

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ITF.WABG.15.LO:2-01 – LO:2-01

NATIONAL STANDARDS: United States – BUSPROG: Analytic

STATE STANDARDS: United States – AK – AICPA: FN-Reporting

KEYWORDS: Bloom’s: Knowledge

3. Disability benefits are generally taxable to the individual receiving the amounts.

a. True

b. False

ANSWER: False

RATIONALE: Disability benefits are generally excluded from gross income.

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ITF.WABG.15.LO:2-01 – LO:2-01

NATIONAL STANDARDS: United States – BUSPROG: Analytic

STATE STANDARDS: United States – AK – AICPA: FN-Reporting

KEYWORDS: Bloom’s: Knowledge

4. Which of the following amounts must be included in the gross income of the recipient?

a. Child support payments

b. Welfare payments

c. Gifts

d. Royalties

e. All of the above are included in gross income

ANSWER: d

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

LEARNING OBJECTIVES: ITF.WABG.15.LO:2-01 – LO:2-01

NATIONAL STANDARDS: United States – BUSPROG: Analytic

STATE STANDARDS: United States – AK – AICPA: FN-Reporting

KEYWORDS: Bloom’s: Comprehension

5. All of the following amounts must be included in gross income, except:

a. Gambling winnings

b. Partnership income

c. Accident insurance proceeds

d. Dividends

e. Jury duty fees

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

LEARNING OBJECTIVES: ITF.WABG.15.LO:2-01 – LO:2-01

NATIONAL STANDARDS: United States – BUSPROG: Analytic

STATE STANDARDS: United States – AK – AICPA: FN-Reporting

KEYWORDS: Bloom’s: Comprehension