61) In December of this year, Jake and Stockard, a married couple, redeemed qualified Series EE U.S. Savings Bonds which they had purchased in January 2003. The proceeds were used to help pay for their daughter's college tuition. Jake and Stockard received proceeds of $8,000 representing principal of $5,000 and interest of $3,000. The qualified higher educational expenses they paid this year totaled $6,000. Their AGI is below the threshold for phase-out of the exclusion. What is the amount of interest income Jake and Stockard can exclude from their income this year?
62) Jacob, who is single, paid educational expenses of $16,000 in the current year. He redeemed Series EE bonds and received principal of $8,000 and interest of $3,000. Jacob has other adjusted gross income of $78,700. The $3,000 exclusion must be reduced by
63) In December 2013, Max, a cash basis taxpayer, rents an apartment to Kadeem. Max receives both the first and last months' rent totaling $1,800 plus a security deposit of $400. The amount of income reported as taxable in 2013 is
64) Hoyt rented office space two years ago to Harris, receiving the first and last months' rent plus a security deposit of $1,000. In early January of this year, Harris moves and Hoyt refunds $250 of the deposit and keeps the remainder to cover $500 which is spent for repairs to the office space and one week of unpaid rent that amounts to $250. How would this information be reflected on Hoyt's tax return this year?
A) $750 income and $500 deduction
B) $750 income and no deduction
C) $250 income and $500 deduction
D) No income is recognized, but a $250 deduction is allowed.
65) Which of the following is not included in gross income when received?
A) interest received on bank accounts
B) royalties paid to an author
C) amounts received to cancel or modify a lease
D) refundable security deposit
66) Ricky has rented a house from Sarah since last year. The rent is usually $900 per month, but Sarah reduced the monthly rent down to $800 for all twelve months this year in exchange for Ricky constructing an addition to the house. The addition has a fair market value of $33,000. How much total rental income must Sarah report this year?
67) Distributions from corporations to the shareholders in a nonliquidating distribution will usually be classified as a dividend up to the amount of the corporation's
A) earnings and profits.
B) retained earnings.
C) taxable income for the year.
D) stock basis.
68) Natasha is a single taxpayer with a 28% marginal tax rate. She received dividends this year as follows:
CE Corp., a C corporation
SE Corp., an S corporation
Paris Corp., a foreign corporation
How much of the $6,000 dividend income will be taxed at the 15% tax rate?
69) In 2013, Richard, a single taxpayer, has adjusted gross income of $40,000. His AGI includes $4,000 of qualified dividends. Richard has no dependents and does not itemize deductions. What is his 2013 federal income tax?
70) Edward, a single taxpayer, has AGI of $50,000 which includes $1,000 of qualified dividends. Edward has $7,000 of itemized deductions. What is his 2013 federal income tax?