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which if any of the following taxes are proportional rather than progressive removed 3622736

Which, if any, of the following taxes are 
proportional (rather than 
progressive)?[removed]a.State general sales tax[removed]b.Federal estate tax[removed]c.Federal gift tax[removed]d.Federal corporate income tax[removed]e.All of these choices are correct.  Which of the following sources has the 
highest tax validity?[removed]a.
Internal Revenue Code section[removed]b.Regulations[removed]c.Revenue Procedure[removed]d.Revenue Ruling[removed]e.None of these choices are correct.  During 2016, Esther had the following transactions:

Salary $70,000
Interest income on Xerox bonds 2,000
Inheritance from uncle 40,000
Contribution to traditional IRA 5,500
Capital losses 2,500

Esther's AGI is:[removed]a.$64,000[removed]b.$67,000[removed]c.$102,000[removed]d.$62,000[removed]e.$104,000  Evan and Eileen Carter are husband and wife and file a joint return for 2016. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 25), who is a full-time medical student. Pamela receives a $5,000 scholarship covering her tuition at college. They furnish all of the support of Belinda (Evan's grandmother), who is age 80 and lives in a nursing home. They also support Peggy (age 66), who is a friend of the family and lives with them. How many dependency exemptions may the Carters claim?[removed]a.Three[removed]b.Four[removed]c.Five[removed]d.Two[removed]e.None of these choices are correct.  Kirby is in the 15% tax bracket and had the following capital asset transactions during 2016:

Long-term gain from the sale of a coin collection $11,000
Long-term gain from the sale of a land investment 10,000
Short-term gain from the sale of a stock investment 2,000

Kirby's tax consequences from these gains are as follows:[removed]a.(5% × $10,000) + (15% × $13,000)[removed]b.(15% × $13,000) + (28% × $11,000)[removed]c.(15% × $23,000)[removed]d.(0% × $10,000) + (15% × $13,000)[removed]e.None of these choices are correct.The Green Company, an accrual basis taxpayer, provides business-consulting services. Clients generally pay a retainer at the beginning of a 12-month period. This entitles the client to no more than 40 hours of services. Once the client has received 40 hours of services, Green charges $500 per hour. Green Company allocates the retainer to income based on the number of hours worked on the contract. At the end of the tax year, the company had $50,000 of unearned revenues from these contracts. The company also had $10,000 in unearned rent income received from excess office space leased to other companies. Based on the above, Green must include in gross income for the current year:[removed]a.$10,000[removed]b.$0[removed]c.$50,000[removed]d.$60,000[removed]e.None of these choices are correct.      Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2016. Copper Company is a publicly held company that has declared a $2.00 per share dividend on September 30th every year for the last 20 years. Just as Darryl had expected, Copper Company declared a $2.00 per share dividend on September 30th, payable on October 15th, to stockholders of record as of October 10th. The daughter received the $2,000 dividend on October 18, 2016.[removed]a.Darryl must recognize the $2,000 dividend as his income because he constructively received the dividend.[removed]b.Darryl must recognize $1,500 of the dividend because he owned the stock for three-fourths of the year.[removed]c.Darryl must recognize the income of $2,000 because the purpose of the gift was to avoid taxes.[removed]d.The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $2,000.[removed]e.None of these choices are correct.   Under the terms of a divorce agreement, Kim was to pay her husband Tom $7,000 per month in alimony. Kim's payments will be reduced to $3,000 per month when their 9 year-old son becomes 21. The husband has custody of their son. For a twelve-month period, Kim can deduct from gross income (and Tom must include in gross income):[removed]a.$60,000[removed]b.$36,000[removed]c.$0[removed]d.$48,000[removed]e.None of these choices are correct.  Albert had a terminal illness which required almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of $100,000. Albert had paid $25,000 of premiums on the policy. The insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000. Albert accepted the $80,000. Albert used $15,000 to pay his medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy:[removed]a.Albert must recognize $65,000 ($80,000 – $15,000) of gross income.[removed]b.Albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses.[removed]c.Albert is 
not required to recognize any gross income because of his terminal illness.[removed]d.Albert must recognize $40,000 ($80,000 – $25,000 – $15,000) of gross income.[removed]e.None of these choices are correct.   Tonya is a cash basis taxpayer. In 2016, she paid state income taxes of $8,000. In early 2017, she filed her 2016 state income tax return and received a $900 refund.[removed]a.If Tonya itemized her deductions in 2016 on her Federal income tax return, she must amend her 2016 Federal income tax return and use the standard deduction.[removed]b.If Tonya itemized her deductions in 2016 on her Federal income tax return and her itemized deductions exceeded the standard deduction by at least $900, the refund will not affect her 2017 tax return.[removed]c.If Tonya itemized her deductions in 2016 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than $900, she must recognize $900 income in 2017 under the tax benefit rule.[removed]d.If Tonya itemized her deductions in 2016 on her Federal income tax return, she should amend her 2016 return and reduce her itemized deductions by $900.[removed]e.None of these choices are correct.   Marsha is single, had gross income of $50,000, and incurred the following expenses:

Charitable contribution $2,000
Taxes and interest on home 7,000
Legal fees incurred in a tax dispute 1,000
Medical expenses 3,000
Penalty on early withdrawal of savings 250

Her AGI is:[removed]a.$49,750[removed]b.$39,700[removed]c.$39,750[removed]d.$40,000[removed]e.None of these choices are correct.      During 2015, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end of the year, employees have earned salaries of $20,000, which are not paid by Silver until early in 2016. What is the amount of the deduction for salary expense?[removed]a.If Silver uses the cash method, $0 in 2015 and $195,000 in 2016.[removed]b.If Silver uses the accrual method, $175,000 in 2015 and $20,000 in 2016.[removed]c.If Silver uses the accrual method, $195,000 in 2015 and $0 in 2016.[removed]d.If Silver uses the cash method, $175,000 in 2015 and $0 in 2016.[removed]e.None of these choices are correct. 

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