epdf.pub_cbest-cliffs-test-prep13a9b242c7cb4125e6cca92d00a73d5a41681

Part V: Practice-Review-Analyze-Practice
4. All taxpayers who itemize deductions
are ineligible for the $1,000 exemption
awarded to all taxpayers who do not
itemize deductions.
16. According to the guidelines, a selfemployed
taxpayer with health insurance
costs of $4,000 and medical, dental, and
pharmaceutical bills of $500 each would
have the largest deduction if he or she
A. did not itemize deductions.
B. itemized only deductions for
medical and dental purposes.
C. itemized only deductions for
pharmaceuticals.
D. did not itemize health insurance
costs.
E. itemized deductions for health
insurance, medical, dental, and
pharmaceutical expenses.
17. A taxpayer who earned her living as a
substitute high school teacher and as a
part-time consultant for publishers of
high school textbooks would probably
want clarification of which of the
following terms in the guidelines?
A. self-employed
B. taxpayer
C. deduction
D. pharmaceuticals
E. exemption
18. According to the guidelines, a taxpayer
who is not self-employed would be
certain to save money by itemizing
deductions if his or her
A. income was more than $50,000.
B. health insurance costs were more
than $3,000.
C. health insurance costs were more
than $1,400.
D. dental costs were more than $500.
E. doctors’ costs were more than $800.
Read the passage below and answer the
question that follows.
A television spot depicts a group of executives
sitting at a conference table in a smokefilled
office. “We’re not in this business for
our health,” says one of the group.
19. This spot is probably a commercial for
which of the following?
A. cigarettes
B. an antismoking campaign
C. a room freshener
D. a business school
E. a political campaign
Read the passage below and answer the
questions that follow.
[1]The new Florida Gulf Coast University is
offering its students a wide choice of new
kinds of classes. [2]Some are given on weekends,
some in off-campus locations, some on
videotape, and some over the Internet.
[3]Almost 10 percent of this term’s courses
will be conducted electronically, and many
students will never see the campus. [4]The
school has elected to eliminate many things
that people expect to find in a university.
[5]There are no dorms, no football stadium,
no intercollegiate athletics. [6]The average
freshman is not an 18-year-old just out of
high school but a 33-year-old with 15 years
of work experience. [7]The president of the
student body is a grandmother.
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