Question

13. Yasmine and her spouse Carlos, who file married filing jointly, provide all the support for their 17-year-old son Miguel Miguel qualities as a qualifying child under the The Individual lecame lox Return Chepter LO 1.6 dependent rules Yamine and Carlos will be able to claim (b) $500 E $1,000 d. $2.000 e. $2.500 LO 1 74. Robin and Howie file married filing jointly and have a 13-year-old daughter. They also peovide all the support for Howie's 82-vear-old mother, who lives in a nursing home nearby. The amount of the combined child tax credit and other dependent credit for Robin and Howie is a. S0 b. $1,000 C. SL.S00 LO 1.6 15. Arthur is 65 years old and single. He supports his father, who is 90 years old, blind and has no income. What is Arthur's standard deduction? A $12.200 $13850 C $15.500 d. $18,350 e. $20,000 e. $2.500 LO 1.7 LO 16. Tapayers who are 65 or older get the benefit of a An additional exemption (bAn additional amount added to their standard deduction c An additional amount added to their itemized deductions d. None of the above LO 1.7 17. Taxpayers who are blind get the benefit of a. An additional exemption O An additional amount added to their standard deduction C. An additional amount added to their itemized deductions d. None of the above LO 1.7 LC 18. Which of the following is not a capital asset to an individual taxpayer? a. Stocks b. A 48-foot sailboat c Raw land held as an investment d. Inventory in the taxpayer's business e. All of the above are capital assets 19. Jayne purchased General Motors stock 6 years ago for $20,000. In the current year, she sells the stock for $35,000. What is Jayne's gain or loss? a $15,000 long-term gain b. $15,000 short-term gain c $15,000 ordinary loss d. $15,000 extraordinary gain e. No gain or loss is recognized on this transaction 20. Alexis purchased a rental house 3 years ago for $290.000, Her depreciation to date is $35,000. Due to a decrease in real estate prices, she sells the house for only $280,000 in 2019. What is her gain or loss for tax purposes? LO 1.8 LO 1.8 LO 1.8 a. S0 b. $10,000 loss c. $10,000 gain

Answer 1

Comect anses is (d) $2000. As for cheld – $2000 for other dependants $500 Age limit of credit is typ on the same explanahon. Correct Answer (6) $2500 - Child tax credit t o thee dependant credit - $20007 Iro it is For head of household $18350 (For 2019) (16) Correct answer is (B) Correct answer is (B) Capital asset excludes inventory Correct answce is (0) Corret ansule is A $15000 long tem gain (35000 - $2000) Caring valuez $890000 - $35000 2 $255000 Hence gain of $25000

(12) To daim as dependent child, it I needs to meet the condehon of qualifying child. Foi qualifying child there is a age limit of 1 Gyps As their daughter is 23 ups old which is more than 19y28 Hende coprett Maltesis FA) But for full time student age limit s gyups Hence she is a qualifying child