· Question 1
2 out of 2 points
Which of the following statements is true regarding the education tax credits?
· Question 2
2 out of 2 points
During 2013, Eleanor earns $120,000 in wages as an employee of an accounting firm. She also earns $13,000 in gross income from an outside consulting service she operates. Deductible expenses paid in connection with the consulting service amount to $3,000. Eleanor also has a recognized long-term capital gain of $1,000 from the sale of a stock investment. She must pay a self-employment tax on:
· Question 3
2 out of 2 points
During the year, Purple Corporation (a U.S. Corporation) has U.S.-source income of $1,800,000 and foreign income of $600,000. The foreign-source income generates foreign income taxes of $150,000. The U.S. income tax before the foreign tax credit is $816,000. Purple Corporations foreign tax credit is:
· Question 4
2 out of 2 points
Pat generated self-employment income in 2013 of $76,000. The self-employment tax is:
· Question 5
2 out of 2 points
Unless a taxpayer is disabled, the tax credit for the elderly or disabled is available only if the taxpayer is at least 59 1/2 years old.
· Question 6
2 out of 2 points
If a taxpayer is required to recapture any tax credit for rehabilitation expenditures, the recapture amount need not be added to the adjusted basis of the rehabilitation expenditures.
· Question 7
2 out of 2 points
Which of the following issues does not need resolution in an employers effort to comply with employment tax payment requirements?
· Question 8
2 out of 2 points
Molly has generated general business credits over the years that have not been utilized. The amounts generated and not utilized follow:
2009
$2,500
2010
7,500
2011
5,000
2012
4,000
In the current year, 2013, her business generates an additional $15,000 general business credit. In 2013, based on her tax liability before credits, she can utilize a general business credit of up to $20,000. After utilizing the carryforwards and the current year credits, how much of the general business credit generated in 2013 is available for future years?
· Question 9
2 out of 2 points
All taxpayers are eligible to take the basic research credit.
· Question 10
2 out of 2 points
For purposes of computing the credit for child and dependent care expenses, the qualifying employment-related expenses are limited to an individuals actual or deemed earned income.