2017 – INCOME TAX FUNDAMENTALS CHAPTER 1 - QUIZ QUESTION 1 1. Clay purchased Elm Corporation stock 20 years ago for $10,000. In 2015, he sells the stock for $29,000. What is Clay's gain or loss? a. $19,000 long-term b. $3,000, with the excess carried forward c. $19,000 short-term d. $19,000 ordinary e. No gain or loss is recognized on this transaction
QUESTION 2 1. Taxpayers who are blind get the benefit of: a. An extra exemption. b. An additional amount added to their standard deduction. c. Two standard deductions. d. None of the above.
QUESTION 3 1. An item is not included in gross income unless the tax law specifies that the item is subject to taxation. True False
QUESTION 4 1. A corporation is a reporting entity but not a tax-paying entity. True False
QUESTION 5 1. Which one of the following provisions was passed by Congress to meet a social goal of the tax law? a. The deduction for job hunting expenses. b. The charitable deduction. c. The moving expense deduction for adjusted gross income. d. The deduction for soil and water conservation costs available to farmers. e. None of the above.