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Question 4. Question : (TCO 2) You have invested in the stock market and receive dividends. The<br />
dividend income must be reported as _____ income.<br />
<br />
<br />
<br />
<br />
<br />
passive<br />
earned<br />
investment<br />
capital gain<br />
excluded<br />
Question 5. Question : (TCO 2) George Washburn had earnings from his salary of $44,000, interest on<br />
savings of $800, a contribution to a traditional individual retirement account of $2,000, and dividends from<br />
mutual funds of $600. George’s adjusted income (AGI) would be<br />
$43,400.<br />
$44,000.<br />
$45,400.<br />
$42,000.<br />
$42,800.<br />
Question 6. Question : (TCO 2) _____ can be calculated as a result of various items being subtracted<br />
from gross income, such as individual retirement account contributions and alimony payments.<br />
<br />
<br />
<br />
<br />
<br />
Adjusted gross income<br />
Taxable income<br />
Earned income<br />
Passive income<br />
Total exclusions<br />
Question 7. Question : (TCO 2) Expenses that a taxpayer is allowed to deduct from adjusted gross<br />
income are called _____.<br />
<br />
<br />
<br />
<br />
<br />
exemptions<br />
exclusions<br />
itemized deductions<br />
tax credits<br />
passive income<br />
Question 8. Question : (TCO 2) Taxes owed can be reduced through _____.<br />
<br />
<br />
<br />
<br />
<br />
the standard deduction<br />
a tax credit<br />
an itemized deduction<br />
an exclusion<br />
an exemption
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