ACC 497 Final Exam - Assignment

eceivable for services performed in December, which he deposited in an
operating account on January 2 of next year. What is the amount Alex must
include in his income for December?
A. $7,000
B. $12,000
C. $14,000
D. $21,000
67. Bianca is beneficiary of an $80,000 insurance policy on her father's life. Upon his
death, she may elect to receive the proceeds in 5 yearly installments of $17,500 or
may take the $80,000 lump sum. She elects to take the lump sum payment. What
are the tax consequences in year one?
A. All $17,500 each year is taxable.
B. $7,500 interest is taxable in the first year.
C. There is no taxable income.
D. $1,500 of the $17,500 payment is taxable each year.
68. Nonrefundable tax credits
A. only offset a taxpayer's tax liability.
B. may only be used if the taxpayer is receiving a refund.
C. have expired but may be reinstated with new tax legislation.
D. allow the excess over the taxpayer's tax liability to be paid to the taxpayer.
69. Paul makes the following property transfers in the current year: $22,000 cash to
his wife, $34,000 cash to a qualified charity, $120,000 house to his son, and $3,000
computer to an unrelated friend. The total of Paul's taxable gifts, assuming he
does not elect gift splitting with his spouse, subject to the unified transfer tax, is
A. $107,000.
B. $123,000.
C. $145,000.
D. $179,000.
REGULATION
Section 6: Federal Taxation-Entities