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indicate the answer eiple Choice Indicate the answer chakce that best com answer

ID: 2336609 • Letter: I

Question

indicate the answer

eiple Choice Indicate the answer chakce that best com answers the question ent or 11. In 2016, Cindy had the following transactions: Salary: $90,000 Received repayment of $20,000 loan she made to her sister in 2012 (includes no .Child Support Received: $10,000 Alimony Received: $4,000 Contributions to IRA: $3,000 Interest on City of Foxboro bonds: $1,000 Cindy's AGI is: a. $114,000 b. $103,000 c. $94,000 d. $92,000 e. $91,000 A use tax is imposed by: a. The Federal government and all states. b. The Federal government and a majority of the states. c. All states and not the Federal government. d. Most of the states and not the Federal government e. None of these. 12. 13. Which, if any, of the following taxes are proportional (rather than progressive)? a. State general sales tax b. c. Federal corporate income tax Federal estate tax d. Federal gift tax e. All of these 14. Burt and Lisa are married and live in a common law state. Burt wants to make gifts to their four children in 2017. What is the maximum amount of the annual exclusion they will be allowed for these gifts? a. $14,000. b. $28,000. c. $56,000. d. $112,000 e. None of these.

Explanation / Answer

11. 94000

Wages 90000

Alimony received 4000

.Adjusted Total Income =94000

Tax Exempt Interest 1000 need not be included in the adjusted total income

12. use tax is a  tax levied in the United States by numerous state governments. most of the states but not the Fedral giverment

13.Proportional tax - rate of tax remains constant over the tax base genetally sales tax

  Progressive tax - Tax rates increase as the tax base grows larger example federal tax rates

from the above A is the sales tax which is nothing but a proportional tax

14.the annual limit for gift is 14000$ per receipient

maximun amount that can be exempted is 4*2*14000=112000(d)

there is no limit on number of person the only limit is the aount specified