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51. Mrs. Raines died on June 2, 2010. Mr. Raines has not remarried and has no children or other dependents.

What is his filing status for 2010 and 2011?

A. Surviving spouse for 2010 and 2011.

B. Surviving spouse for 2010; single for 2011.

C. Married filing jointly for 2010; surviving spouse for 2011.

D. Married filing jointly for 2010; single for 2011.

52. Which of the following taxpayers can't use the tax rates for married filing jointly in 2011?

A. Mr. Lane died on August 10, 2011. Mrs. Lane has not remarried and has no dependent children.

B.

Mrs. Holden died on January 15, 2010. Mr. Holden has not remarried and maintains a home for two

dependent children.

C.

Mr. and Mrs. West were legally divorced on December 21, 2011. Mrs. West has not remarried and

maintains a home for three dependent children.

D. All of the above taxpayers qualify for married filing jointly filing status.

53. Marie, an unmarried taxpayer, is 26 years old. This year, Marie earned $50,000 gross income. Her

itemized deductions totaled $5,100. Marie maintained a home for her 12-year-old sister who qualifies as

Marie's dependent. Compute Marie's taxable income.

A. $41,200

B. $34,100

C. $36,800

D. None of the above

54. Mr. and Mrs. Liddy, ages 39 and 41, file a joint return and have no dependents for the year. Here is their

relevant information.

Compute their adjusted gross income (AGI) and taxable income.

A. AGI $50,200; taxable income $31,200

B. AGI $47,000; taxable income $31,200

C. AGI $47,000; taxable income $39,600

D. AGI $50,200; taxable income $39,600

55. Mr. and Mrs. Dell, ages 29 and 26, file a joint return and have no dependents for the year. Here is their

relevant information.

Compute their adjusted gross income (AGI) and taxable income.

A. AGI $44,700; taxable income $37,300

B. AGI $58,700; taxable income $37,300

C. AGI $58,700; taxable income $39,700

D. AGI $58,700; taxable income $44,700

56. Which of the following statements regarding the calculation of taxable income is false?

A. The first step in the calculation of taxable income is determining the taxpayer's total income.

B. Adjusted gross income is equal to total income less above-the-line deductions.

C. Adjusted gross income can be reduced by the greater of the standard deduction or itemized deductions.

D.

Taxpayers are allowed to deduct the greater of itemized deductions or above-the-line deductions in

calculating taxable income.

57. Julie, an unmarried individual, lives in a home with her 13-year-old dependent son, Oscar. This year,

Julie had the following tax information.

Compute Julie's adjusted gross income (AGI) and taxable income.

A. AGI $118,000; taxable income $105,800

B. AGI $118,000; taxable income $95,200

C. AGI $118,000; taxable income $102,100

D. AGI $111,100; taxable income $97,900

58. Julie, an unmarried individual, lives in a home with her 13-year-old dependent son, Oscar. This year,

Julie had the following tax information.

Compute Julie's adjusted gross income (AGI) and taxable income.

A. AGI $97,800; taxable income $70,300

B. AGI $97,800; taxable income $76,800

C. AGI $91,300; taxable income $77,700

D. AGI $91,300; taxable income $70,300

59. Tamara and Todd Goble, ages 72 and 58, file a joint return. Todd is legally blind. Compute their standard

deduction.

A. $10,000

B. $11,600

C. $12,750

D. $13,900

60. In determining the standard deduction, which of the following statements is true?

A. The standard deduction is a function of filing status.

B.

An individual who is both blind and age 65 by the last day of the taxable year is entitled to one

additional standard deduction amount.

C.

An individual who is claimed as a dependent on another person's tax return is not allowed a standard

deduction.

D. All of the above statements are true.

61. Mr. and Mrs. Kay, ages 68 and 66, file a joint return. Mrs. Kay is legally blind. Compute their standard

deduction.

A. $11,600

B. $15,050

C. $13,900

D. $12,750

62. Melissa, age 16, is claimed as a dependent on her parents' tax return. This year, Melissa earned $2,000

from babysitting and $1,280 interest income from a savings account. Compute Melissa's standard

deduction.

A. $5,800

B. $2,300

C. $2,000

D. $950

63. Melissa, age 16, is claimed as a dependent on her parents' tax return. This year, Melissa earned $510 from

babysitting and $220 interest income from a savings account. Compute Melissa's standard deduction.

A. $730

B. $810

C. $520

D. $950

64. Hunter, age 17, is claimed as a dependent on his parents' tax return. This year, Hunter earned $8,500 for

appearing in a television commercial. Compute Hunter's standard deduction.

A. $950

B. $8,800

C. $5,800

D. $0

65. Mr. and Mrs. Upton's marginal tax rate on their joint return is 33%. This year, their itemized deductions

totaled $13,100, and their standard deduction (MFJ) was $11,600. Compute their incremental tax savings

from their itemized deductions.

A. 0

B. $495

C. $3,762

D. $4,257

66. Which of the following statements describing individual tax deductions is false?

A. Individuals can take both above-the-line and the standard deduction in the same year.

B.

Individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the

standard deduction.

C.

In a year in which an individual takes the standard deduction, any itemized deductions yield no tax

benefit.

D. Individuals who pay self-employment tax can deduct the tax as an itemized deduction.

67. Which of the following statements describing individual tax deductions is false?

A.

In a year in which an individual takes the standard deduction, any itemized deductions yield no tax

benefit.

B. The majority of individual taxpayers itemize rather than taking the standard deduction.

C.

Individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the

standard deduction.

D.

Individuals who pay self-employment tax can deduct a portion of the tax as an above-the-line

deduction.

68. Kent, an unmarried individual, invited his elderly, widowed father, Martin, to move into his home in

January of this year. Martin's only income item was a $14,000 taxable pension from his former employer.

Kent provides about 75% of his father's financial support. What is Kent's filing status and number of

exemptions for the year?

A. Single and one exemption

B. Single and two exemptions

C. Head of household and one exemption

D. Head of household and two exemptions

69. Ms. Dolan, an unmarried individual, invited her elderly, widowed uncle, Martin, to move into her home

in January of this year. Martin's only income item was $2,390 of taxable interest on a savings account.

Ms. Dolan provides over 90% of her uncle's financial support. What is Ms. Dolan's filing status and

number of exemptions for the year?

A. Single and one exemption

B. Single and two exemptions

C. Head of household and one exemption

D. Head of household and two exemptions

70. Mr. and Mrs. Anderson file a joint return. They provide more than 50% of the financial support of their

two children, Dana, age 26, and John, age 17. Both children live in the Andersons' home. Dana earned

$7,100 from a part-time job, while John earned no income this year. Which of the following statements is

true?

A. Both Dana and John are qualifying children of the Andersons.

B. Dana is a qualifying relative and John is a qualifying child of the Andersons.

C. John is a qualifying child of the Andersons.

D. Neither Dana nor John is a qualifying child of the Andersons.

71. Ms. Lewis' maintains a household which is the principal place of residence for Kathy. Ms. Lewis'

provides more than 50% of Kathy's financial support. In which of the following cases can Ms. Lewis'

claim Kathy as a qualifying child?

A. Kathy is age 8 and the child of Ms. Lewis' best friend, who died three years ago.

B. Kathy is Ms. Lewis' 15 year old niece.

C. Kathy is Ms. Lewis' 30 year old unmarried sister.

D. Both b. and c.

72. Mr. and Mrs. Jelk file a joint return. They provide 65% of the financial support for David, the 14-year old

son of a friend who died three years ago. David lives in the home of his aunt Sarah, who provides 35% of

his financial support. Which of the following statements is true?

A. David is a qualifying child of the Jelks.

B. If David earns less than $3,700 gross income this year, he is a qualifying child of the Jelks.

C. If David earns less than $3,700 gross income this year, he is a qualifying relative of the Jelks.

D. David is neither a qualifying child nor a qualifying relative of the Jelks.

73. Which of the following statements regarding exemptions is false?

A. Taxpayers can claim a dependency exemption for a qualifying child or a qualifying relative.

B. A qualifying child must be the natural child, the adopted child, or the stepchild of the taxpayer.

C.

A qualifying relative includes an unrelated individual who is a member of the taxpayer's household for

the year.

D. There is no limit on the amount of gross income that a qualifying child may earn in a year.

74. Which of the following statements regarding a qualifying child is false?

A. The child must have been alive at least 180 days during the tax year.

B. The child must be a U.S. citizen or resident of the United States, Canada, or Mexico.

C. The child must not have provided more than 50% of his or her own financial support during the year.

D.

The child must not have filed a joint return with a spouse unless the return was filed only as a refund

claim.

75. Mr. and Mrs. Steel, who file a joint return, have $513,200 taxable income in 2011. Compute their regular

tax liability.

A. $101,086

B. $149,492

C. $179,620

D. None of the above