11) Spencer & Daisy are married and have a combined AGI of $55,000. They donated
ID: 341035 • Letter: 1
Question
11) Spencer & Daisy are married and have a combined AGI of $55,000. They donated a sofa, which they purchased for $1000 and is now worth $500, to a halfway house. To a charitable organization for their auction, Spencer & Daisy donated a painting which they purchased for $1000 and is now worth $10,000. They also gave a cash donation of $2500 for research to the Alzheimer’s Association. What amount of their contributions are classified as ordinary income property? A) 2500 B) 4000 C) 13,500 D) 13,000 12) Bob Barker decided to donate some Apple stock that has a current FMV of $50,000 and he purchased it for $30,000 10 years ago. What is the percentage limitation of AGI? A) 10% B) 101% C) 30% D) 50% 13) Bill takes 8 credits in the quarter system. He is 25 years old and lives with his mother. He made $3,900 from a Hearthstone video game tournament. Yes, he is that good. I. Bill’s mother can claim him as a dependent as a qualifying child. II. Bill’s mother can claim him as a dependent as a qualifying relative. A) Only I is correct B) Only II is correct C) Both are correct D) Neither is correct 14) Gwen and Blake haven’t sold records in two years. As a result, they got real jobs, got married, and had one child. Their child is two years old and goes to daycare while they work. Their qualified child care expenses for the year total $4,000 and their AGI is $35,000. What is the amount of the tax credit for dependent care they will take? A) $0 B) $600 C) $750 D) $800 E) $1,000 F) $1,050 G) $1,400 H) $3,000 15) Donald Trump has an AGI of $40,000. He made a donation to a charity for $20,000 worth of securities that he purchased for $10,000 2 years ago. How much can he deduct in the current year and carry forward? A) Current = 20,000, Carryforward = 0 B) Current = 8,000, Carryforward = 12,000 C) Current = 10,000, Carryforward = 10,000 D) Current = 12,000, Carryforward = 8,000 E) Current = 12,000, Carryforward = 0 16) Doug has the following interest expenses: 1) Interest on mortgage of business building. 2) Interest on personal credit cards. 3) Student loan interest. 17) Which interest expense(s) is/are considered deductible? A) Statements I and III B) Statements I and II C) All Statements D) None of the statements
Explanation / Answer
11)
12) 30% limitation of AGI (contribution of capital gain property)
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