Answer all questions and problems appearing on this examination under rules governing federal income taxation. Unless instructed otherwise, assume the relevant year to be2023.

Allfinal answershavebeen rounded to the nearest$10.

. A taxpayer using the standard mileage method for trade or business use of an automobile is permitted to increase the computed amount by which of the listed actual expenditure amounts? A State and local property tax B Gasoline C Insurance on the vehicle D All of the listed costs may be deducted in addition to the computed amount E None of the listed costs may be deducted in addition to the computed amount 35. Which of the listed individuals will qualify as a dependent of Taxpayer? A A twenty-six year old son who earned $5, 100 between January 1 and March 17, but was unemployed for the remainder of the year B A seven year old niece supported by Taxpayer, but who lived with Taxpayer's parents all year C The five year old son of Taxpayer's best friend who lived with Taxpayer all year while the child's parents were in prison D A twenty-one year old married daughter who was supported by Taxpayer, but who filed a joint return with her husband. Assume that the daughter earned $14,000 of income and the joint return reported a $400 income tax liability. E None of the above 36. Which of the listed items would normally be included in gross income 1 . A radio quiz show vacation prize (value $1,500) 2 . A $100 cash payment received as an employee safety award 3. A new watch (value $100) received by an employee upon attainment of ten years with his/her new employer A. Item 1 only B. Item 2 only C. Item 3 only D. Item 1, Item 2, and Item 3 all would be included in gross income E. None of the above answers are correct 37. Anne Able, age 86, spends considerable time each year pursuing her hobby of baseball card collecting, occasionally attending card collector shows, where she buys and sells cards. During 2020, Anne records gross sales of $3,100 at seven shows and incurs and pays ordinary and necessary expenses of $5,200. On Anne's 2020 Form 104, she must report ... A Gross revenue of $3 100 but can deduct $3, 100 "for AGI." B Gross revenue of $3 100 but can deduct $5,200 "for AGI." C Gross revenue of $3, 100, but can deduct $5,200 "from AGI." D Gross revenue of $3,100, but can deduct $3, 100 "from AGI." E None of the above38. 39. 40. Corp. A purchases and pays 100% of the premium cost for group term life insurance on all of its employees. Employee Anne Able, age 56, has a policy providing $89,500 of cove rage. Assume that Corp. A pays $240 actual premium cost for Anne's policy for the year. Based on the above data, Corp. A will include what amount of additional taxable income on Anne's W-2 for the year? A $460 B 240 C 210 D 260 E None of the above On June 23, 2017, taxpayer Christopher Jones, age 72, purchased an annuity for $52.000. The annuity terms provide for payment of $280.00 per month, beginning on July 1, 2017. Payments are to be made to_Christopher for his life and then to his wife, Maggie, for her life in the event that Christopher dies first. Assume that Maggie age 69 on the date of the annuity purchase. Both Christopher and Maggie remain alive as of December 31, 2020. What income amount will Christopher and Maggie report on their joint 2020 Form 10407 (remember - - round nothing until you arrive at the final answer and then round it to the nearest $10.) A 3 3360 B 800 C 0 D 2,560 E None of the above All of the listed items would be excluded from gross income as a qualified scholarship by an individual who is a candidate for a degree at a qualified educational institution _ except ... Tuition Required student fees Required text baoks All of the above would be excluded None of the above would be excluded mo o @ =