1. Jena is a full-time student at atState University and is claimed by her parents as a...
Question:
1. Jena is a full-time student at atState University and is claimed by her parents as a dependent. Her only source of income is a $6,000 scholarship($400 for books, $3,000 tuition, $200 athletic fee, and $2,400 room and board). Jena’s gross income for the year is:
a. $0.
b. $400.
c. $2,600.
d. $3,000.
e. None of the above.
2. The taxpayer is a Ph.D. student in accounting at State University. The student is paid $1,000per month for teaching two classes.
a. The $1,000 is excludable if allPh.D. students are required to teach.
b. The $1,000 is excludable because of itis a gift.
c. The $1,000 is considered a scholarship and, therefore, is excluded.
d. Only $500 is included in income.
e. None of the above.
3. Legal fees incurred in connection with a criminal defense are deductible if the crime is associated with a trade or business.
a. True
b. False
4. Jacques, who is not a U.S. citizen, makes a contribution to the campaign of a candidate for governor. A contribution by a noncitizen is illegal under state law. Cassie, a U.S. citizen, makes a contribution to the same campaign fund. The contribution by Cassie deductible, while the contribution by Jacques is not.
a. True
b. False
5. If a vacation home is primarily rental, a deduction for all of the rental expenses is allowed.
a. True
b. False
6. Goodwill must be capitalized and can not be amortized.
a. True
b. False
Accounting For Managers Interpreting Accounting Information for Decision Making
ISBN: 978-1119979678
4th edition
Authors: Paul M. Collier