Question 1

Amy makes the following gifts in the year 2016:
$25,000 cash gift to her husband:
a. $25,000 is taxable because you cannot gift money to your spouse
b. Only $11,000 is taxed due to the $14,000 annual gift exclusion
c. None is taxable due to $14,000 annual gift exclusion and $11,000 marital deduction
d. None is taxable as money transferred to a spouse is never subject to the gift tax

Question 2

Amy makes the following gifts in the year 2016:
Gift of a personal automobile valued at $40,000 to her adult son
a. $40,000 is taxable because you cannot gift money to your child
b. Only $26,000 is taxed due to the $14,000 annual gift exclusion
c. None is taxable due to $14,000 annual gift exclusion and $26,000 marital deduction
d. None is taxable s money transferred to a child is never taxable

Question 3

Determine Betty's adjusted gross income for the year given the following information:
Salary: $78,000
Child care credit: $1,000
Personal and Dependency Exemptions: $12,000
Investment interest: $4,000
IRA contribution: $5,500
Municipal bond interest: $500
Federal income taxes withheld: $6,000
Itemized Deductions: $15,300

a. $82,500
b. $82,000
c. $76,500
d. $77,000

Question 6

Determine Betty's taxable income for the year given the following information:
Salary: $78,000
Child care credit: $1,000
Personal and Dependency Exemptions: $12,000
Investment interest: $4,000
IRA contribution: $5,500
Municipal bond interest: $500
Federal income taxes withheld: $6,000
Itemized Deductions: $15,300

a. $55,200
b. $54,700
c. $49,700
d. $49,200