364 jeopardy exam 2 review
TRANSCRIPT
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Choose a category. You will be given the answer.
You must give the correct question. Click to begin.
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Click here for Final Jeopardy
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Compensation Investments Personal Activities
10 Point
20 Points
30 Points
40 Points
50 Points
10 Point 10 Point 10 Point 10 Point
20 Points 20 Points 20 Points 20 Points
30 Points
40 Points
50 Points
30 Points 30 Points 30 Points
40 Points 40 Points 40 Points
50 Points 50 Points 50 Points
Retirement Planning
Individual TaxFormula
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The filing status and number of personal and dependent exemptions claimed by Sally.
Sally is divorced and provides a home for her 2-year old daughter, Emma, and her 26-year old sister, Janet.
Emma’s Dad pays child support of approximately 30% of Emma’s support. Janet works full time as a teacher,
earning $35,000 and is not married.
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What is HOH and 2 exemptions
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Three individual tax deductions that are
Above-The-Line-Deductions
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Moving Expenses
½ of Self-Employment income
Self-employed health insurance deductions
Alimony paid
IRA Deduction
Student loan interest
Educator Expenses
Domestic Production Activities Deduction
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AGI of a single individual with no dependents and:
Salary $50,000
Interest income $1,000
Charitable contributions $2,000
Mortgage interest expense $3,000
Moving expense $5,000
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What is $46,000
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Taxable Income of a married couple, filing joint, with 2 dependent children and:
Wages $200,000
Dividend income $2,200
Short-term capital gain $3,000
Long-term capital loss ($8,000)
Mortgage interest expense $15,000
Medical expenses $2,000
Real estate taxes $3,200
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What is $165,400
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The tax due or (refund) for a single individual, no dependents, with:
Salary $100,000
Charitable contributions $5,000
Investment expenses $3,000
Tax withheld $20,000
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What is a refund of $1,506.75
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Amount of deductible compensation paid to CEO of XYZ public company if CEO receives:
$900,000 cash compensation
50% bonus (or $450,000) if profit targets met
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What is $1,350,000
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One reason why a worker would want to be an employee, versus an independent contractor.
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What is:
Health insurance paid by employer
Participate in retirement plan
Only pay ½ Social Security and Medicare
Business expenses reimbursed
More security of regular income
Unemployment benefits if terminated
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Taxable wages in 2013 of Jim, who receives:
Cash compensation $70,000
NQ stock options for 1,000 shares stock, strike $3, when stock selling at $10. Granted 12/15/13
Health insurance premiums paid $16,000
Participates in 401K, employee deferral $10,000
Reimbursed for employee travel $4,000
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What is $60,000
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Bob is 100% owner and CEO of his private C Corporation. The corporation has $5 million net income, before payments to
Bob. Bob pays himself a salary of $4,900,000.
The IRS may re-characterize some of Bob’s salary as _____________.
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What is Dividend?
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John’s deductible miscellaneous itemized deductions in 2013 if he:
Spends $750 in job hunting expenses to find a new job
Drives 5,000 miles for employee business, with no reimbursement
Pays $500 for professional dues related to his job
Buys employee supplies of $400, reimbursed for all
Has AGI of $60,000.
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What is $2,875?
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A type of qualified defined-contribution plan where employee elects to contribute some of his salary, and the employer may “match” all or a
portion of that contribution.
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What is a 401K Plan?
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Jill’s maximum contribution to her self-employed Keogh Plan if her net income from Schedule C is $220,000 and
Interest income is $20,000.
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What is $44,000?
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Taxable amount of Regular IRA distribution if received $12,000 during the year, age 63, and all contributions in the
past have been tax-deductible.
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What is $12,000?
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The taxable income recognized by John, who exercises 200 Non-Qualified stock options, with a
strike price of $10, when the stock is trading at $22.
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What is $2,400?
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The capital gain recognized by Emily when she sells 400 shares of employer stock at $40
per share, that she received when she exercised 400 NQ stock options, with a strike
of $20, when the stock was trading at $35.
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What is $2,000?
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John’s federal taxable investment income if he receives:
Interest from municipal bond $900
Interest from money-market $500
Interest from US Treasury bond $4,000
Interest from GE corporate bond $6,000
ATT dividends(qualified) $3,000
Hoya Foreign dividends(nonqualified) $3,500
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What is $17,000?
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Ed’s total stock basis in GM stock if he:
Purchased for $30,000
Received cash dividends of $1,000
Reinvested stock dividends of $2,500
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What is $32,500?
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The amount and character of Sue’s gain or loss in 2013 if she:
Bought 2,000 shares of NeverFail Inc. in 2000 at $50 per share
NeverFail is delisted from stock exchange in 2012
NeverFail files bankruptcy in 2013
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What is $100,000 long-term capital loss?
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Tax consequence to Ray if he:
Is 100% owner and founder of a start-up corporation called App-Me, Inc., in which he invested $1,000,000 of his own
money in the stock.
Three years later, sells his company and receives:
20,000 shares of Google, Inc., worth $12 million
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What is $11 million realized gain,
but zero gain for tax purposes?
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Roy’s AGI if he has the following income and losses:
Wages $100,000
Interest income $10,000
Long-term capital loss ($8,000)
Net income from rental house $2,000
Net loss from restaurant that he spends no time in ($12,000)
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What is $107,000?
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Gregg’s 2013 taxable gifts (before lifetime exemption) if he:
Gave $20,000 to his alma mater University
Transferred $50,000 cash to his ex-wife in divorce settlement
Gave $10,000 to Wendy Davis campaign
Paid his niece’s UT tuition, of $30,000 directly to UT
Gave his mother a new car valued at $63,000
Gave his brother, Sam, $10,000 when he lost his job
Gave his brother, Sam, his fishing boat, valued at $5,000
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What is $50,000?
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Mrs. Wynn’s taxable estate if she died in 2013, with total assets of $25 million (had never given lifetime
gifts) and:
Left $5,000,000 in a trust for her nephew
Left $2,000,000 to her favorite charity
Left a house, valued at $10,000,000 to her sister
And left the remaining assets to her husband
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What is $9,750,000?
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Your advice to Alice (in 25% tax bracket) is to collect from her ex-husband:
$1,500 alimony per month for 5 years
$1,200 child support per month for 5 years
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What is the child support of $1,200 per month?
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The taxes from below that will be deducted on Schedule A as an itemized deduction:
Real estate taxes on rental house $3,000
Sales taxes paid $1,200
½ self-employment taxes $17,000
State income taxes paid $4,500
Real estate taxes paid on primary residence $6,000
Personal property taxes on personal use boat $1,000
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What is $11,500?
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Tax loss for Janet (whose AGI is $200,000) when:
Jewelry originally purchased and valued at $50,000 was stolen
Insurance paid her $20,000
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What is $9,900?
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Make your wager
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Jeff (single) has $246,000 AGI, comprised of
Salary $180,000
Interest income $12,000
Capital gains $30,000
Net income from Passive Activity $24,000
Jeff’s Net Investment Income Tax (healthcare tax on unearned income) is __________________
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What is $1,748?