1 year ago


earned investment

earned investment capital gain excluded Question 5. Question : (TCO 2) George Washburn had earnings from his salary of $44,000, interest on savings of $800, a contribution to a traditional individual retirement account of $2,000, and dividends from mutual funds of $600. George’s adjusted income (AGI) would be $43,400. $44,000. $45,400. $42,000. $42,800. Question 6. Question : (TCO 2) _____ can be calculated as a result of various items being subtracted from gross income, such as individual retirement account contributions and alimony payments. Adjusted gross income Taxable income Earned income Passive income Total exclusions Question 7. Question : (TCO 2) Expenses that a taxpayer is allowed to deduct from adjusted gross income are called _____. exemptions exclusions itemized deductions tax credits passive income Question 8. Question : (TCO 2) Taxes owed can be reduced through _____. the standard deduction a tax credit an itemized deduction an exclusion an exemption Question 9. Question : (TCO 2) In order for a dependent to qualify as an exemption, he or she must be married. receive more than one half of his or her support from the taxpayer. be under age 16.

e registered in school. be a relative. Question 10. Question : (TCO 2) People who _____ must make estimated quarterly tax payments. are employed in a foreign country. receive dividends. work for the government. do not have adequate amounts withheld from income. Question 11. Question : (TCO 2) A(n) _____ is an all-purpose account that provides several services. NOW account asset management account EFT account mutual fund money market account Question 12. Question : (TCO 2) An example of a _____ deposit is a checking account. common time current loan demand Question 13. Question : (TCO 2) An example of a place where one will encounter high fees for loans when borrowing money is a _____. credit union savings and loan association pawnshop commercial bank mutual savings bank Question 14. Question : (TCO 2) _____ are the major products offered by investment companies. Interest-bearing checking accounts Variable-rate loans Credit card accounts Savings bonds Mutual funds Question 15. Question : (TCO 2) One of the characteristics of a certificate of deposit is that it can have high interest-rate risk. low safety for savers.