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In this segment, we will review some tax rules
that affect every person who may have to file a federal income tax return. We
will cover topics such as who must file, what filing status and how
many exemptions to use. In addition, this section is about the standard
deduction and taxpayers who do not itemize their deductions.
131. "If you don't have integrity, you have
nothing. You can have all the money in the world, but if you are not a moral and
ethical person, you really have nothing." was said by
A.
Abraham Lincoln. B.
Barack Obama. C.
Henry Kravis. D.
Albert Einstein.
132. Robert J. Stevens sets the tone of ethics and values for his
entire organization by
A.
Communicating clearly his expectations and values by leading by example. B.
Emulating a standard of excellence in behavior each day. C.
Finding examples of employees across the workplace of employees who have taken
an action very much admired. D.
All of the
above.
133. According to Sandra Barbour, you need to do a test where you
ask "Would I do this if I knew that I wouldn't get caught?"
True
False
134. One action by one employee can distort the contribution of
135,000 employees so part of the communication on ethics includes
A.
The question "Do you want to be
the person who would taint the
reputation of all these colleagues whom we admire and trust?" B.
Who will be the first to taint the company? C.
Identifying potential ethics violators. D.
All of the above.
135. The CEOs in Dilbert Ethics went
golfing to discuss
A.
Taxes being too darn high. B.
Which company
should win the government bids. C.
Nurturing and diversity. D.
Networking with other executives on the golf course.
136. Dilbert's office associates were discussing
A.
Making a fortune from special interest groups. B.
Destroying the integrity of the democratic voting system. C.
Ethical consequences of manipulating the voting results for own evil purposes
without ever being detected. D.
All of the
above.
137. The lobbyist were concerned about Dilbert and their goal was
to
A.
Find a way to influence Dilbert
without money. B.
Teach Dilbert to use his creativity. C.
Give Dilbert money in return for the internet voting network system. D.
None of the above.
138. Dilbert was immune to the lobbyists'
inducements.
True
False
139.
In the "Business Ethics" video clip about hooking younger people to smoking,
they will convey their message by
A.
Advertising. B.
Lobbying to lower the smoking age. C.
Protesting to congress about changing smoking laws. D.
Becoming international.
140.
In the "Business Ethics" video clip, Mike, the accountant, is asked by the
manager to pretend the sales from the January 1st, happened December 31 to make
the company appear better to investors. This act is better described as
A.
A minor detail. B.
Unethical. C.
Illegal. D.
A smart move
141. Accounting
errors and purposely manipulating of books are misrepresentations of the
company. An investor who wants to buy stock would see a large volume of sales
and decide to buy the stock. Once someone notices something is wrong, or an
accountant "blows the whistle" on the company,
A.
The stock prices would likely plunge. B.
Any investor who owns stock with that company would lose most, if not all, of
their money. C.
Both A and B above. D.
Any investor who owns stock with that company will receive a full liquidation of
whatever is left of the company.
142. The CEO did not want the company "Monsters Inc." to die so in his effort to
save it he
A.
Made everyone in the company work overtime. B.
Started kidnapping children to extract scare energy. C.
Was faced with the challenge of getting Boo back home. D.
Kept Boo from being captured by the Child Detection Agency.
143. According to
President Barack Obama, the line between campaign contributions and a bribe was
really thin.
True
False
144. The Obama
Administration will make sure that lobbyists be more transparent by having them
meet in public.
True
False
145.
According to President Barack Obama, for the first time we've made sure that
lobbyist who bundled money have to
A.
List where they are getting the money from. B.
List what kind of endorsement they are funneling the funds to. C.
Both A and B above. D.
None of the above..
146. According to the "Business Ethics" video,
when a business acts ethically, it will
A.
Lose money but that is the price of acting ethically. B.
Perform
better. C. Be regarded by the government
for acting ethically. D.
Have tax incentives for acting ethically.
147. According the "Business Ethics" video,
Steve has a huge dilemma because
A.
He is not legally obligated to tell the customer about the possibilities
of cancer in the pill. B.
He could choose to tell the buyer that the pills have a possibility of cancer as
a moral thing to do. C. There is no right or wrong answer and his
beliefs would determine what he needs to do. D.
All of the
above.
148. According to the "Business Ethics" video,
since the pills are legally allowed to be sold, Steve does not have to say
anything and thus since something is legal it means it is moral.
True
False
149. The video clip "Business
Ethics" states that Steve should not sell the diet pills because they are
cancerous.
True
False
150. According the the
"Business Ethics" video, the company should decide not to sell cigarettes to
minors in other countries because
A.
It is illegal. B.
More people will start smoking and in turn more people could die of cancer. C.
Although it will save their jobs, doing so is morally wrong. D.
None of the
above.
151. The following statement is true regarding the head of
household filing status.
A. To qualify
for head of household filing status, you must have a qualifying person who does
not need to be related
as long as he or she meets the requirements to be either a qualifying child or qualifying
relative.
B. To qualify for
head of household filing status, you must pay more than half the cost of keeping
up your home in which you and your qualifying person lived on the last day of
the year.
C. The
Head of
Household filing status is for taxpayers who are either unmarried and not an RDP or
meet the requirements to be considered unmarried or considered not in a
registered domestic partnership and maintain a home for a relative who lived in
them for more than half the year.
D. All of the
above.
152. An eligible foster child is a child for head of household
purposes is a child
A. Placed
with you by an authorized placement
agency or by
a judgment, decree, or other order of a
court of competent jurisdiction.
B. Who
attends school during some part of each of five calendar months during the year.
C. Who's
gross income must be less than the federal exemption amount for the year in
question.
D. You
have legally adopted and after legal adoption, the child is considered your
child by blood.
153. Generally, if two or more people keep up the same home, only
one of the people could pay more than half the costs and qualify for the head of
household filing status. When two or more families occupy the same dwelling,
A. Each family
may be treated as keeping up a separate home if each family contributes to the
support of the other family.
B.
Each family
may be treated as keeping up a separate home if each family maintains separate
finances.
C. Each
family may be treated as keeping up a
separate home if each family maintains separate finances and neither family
contributes to the support of the other family.
D. Both A and B
above.
154. The taxpayer who provides more than half the cost of
maintaining a separate home is treated as keeping up that separate home. To
determine whether you paid more than half the cost of keeping up your home
include
A. Costs of
clothing and vacations.
B. Costs for
education and transportation.
C. Costs for
medical treatment and life insurance.
D. None of the above.
155. If someone lived with you for six months means that the person
lived with you more than half the year for head of household purposes.
True
False
156. If you have joint custody of your child, to qualify for head
of household filing status, you must
A. Still meet
all the requirements for the filing status.
B.
Must have a child that must have lived with you for more than half the year.
C.
Have
paid more than half the cost of keeping up your home.
D. All of the above.
157. If you were married as of the last day of the year, and you
did not live with your spouse at any time during the last six months of the
year, to determine how many days your home was your qualifying person's main
home,
A. Add together
half the number of days that you, your spouse, and your qualifying person lived
together in your home.
B. Add together
all of the days that you and your qualifying person lived together in your home
without your spouse.
C. Both A and B above.
D. None of the
above.
158. If you were married as of
the last day of the year and you lived with your spouse at any time during the
last six month of the year, you can qualify for the head of household filing
status.
True
False
159. You are considered to have chosen to treat your nonresident
alien spouse/RDP as a resident alien if
A. You and your nonresident alien spouse/RDP filed as joint return in a previous
year.
B. You chose to
treat your nonresident alien spouse/RDP as a resident so you could file the
joint return.
C. You have not
revoked the choice to treat your nonresident alien spouse as a resident by the extended due date for filing the return at issue.
D. All of the above.
160. You are not in a registered domestic partnership if
A. You have
never entered into a registered domestic partnership.
B. You filed a
Notice of Termination of Domestic Partnership with the Secretary of State and
the six-month waiting period for the notice to become final has passed.
C. Your
registered domestic partnership was annulled and you did not enter into another
registered domestic partnership after the annulment.
D. Any of the above.
161. Effective for taxable
years beginning on or after January 1, 2007, RDPs under California law must file
their California income tax returns using either the married/RDP filing jointly
or married/RDP filing separately filing status. If you are an RDP, you may
qualify to use the head of household filing status if
A. You are in the process of ending your relationship.
B. You meet the requirements to be considered not in a registered domestic
partnership.
C. Both A and B above.
D. None of the
above.
162. You were not in a registered domestic partnership if your
registered domestic partnership was legally terminated under a final decree of
dissolution. Neither a petition for termination nor an interlocutory decree of
termination is the same as a final decree. Until the final decree is issued, an RDP remains in a registered domestic partnership.
True
False
163. You must be entitled to claim a dependent exemption credit
for your parent to be head of household. That is
A. Your parent
must meet the requirements of a qualifying relative.
B. You must have
paid more than half the cost of keeping up a home that was your parent's main
home for the entire year.
C. Your parent's
main home could have been his or her own home or any other living accommodation.
D. All of the above.
164. In meeting the residency test, a temporary absence may be for
all of the following, except:
A. Due to
illness.
B. Education,
business, vacation or military service.
C. Incarceration.
D. None of the above.
165. To qualify for head of household filing status, your
qualifying relative's gross income must be less than the federal exemption
amount for the year in question.
True
False
166. If two or more taxpayers including a parent claim the same
child as a qualifying child for a particular tax year, the person shall be
treated as the qualifying child of the taxpayer who is
A. A parent of
the person.
B. If none of the
taxpayers is a parent, the taxpayer with the highest adjusted gross income for
the taxable year.
C.
Either A or B above.
D. If none of
the taxpayers is a parent, the person with whom the taxpayer resided the most.
167. For 2010, you were married or an RDP at the end of the year
if
A. You were
never married and never entered into a registered domestic partnership.
B. You received
domestic partnership, or you filed a Notice of Termination of Domestic
Partnership with the California Secretary of State and the six-month waiting
period for the notice to become final has passed.
C. Your spouse/RDP
died in 2010 and you did not remarry or enter into another registered domestic
partnership.
D. None of the above.
168. A registered domestic partner is a person who has filed a
Declaration of Domestic Partnership with the California Secretary of State.
True
False
169. To be head of household, you must provide more than half of a
person's total support during the calendar year to meet the support test. To
determine whether you have provided more than half the support,
A. Find in the table published
for income guidelines.
B. Compare the amount you
contributed for the person's
support to the entire amount of support the person received from all sources.
C. It is only
required that the person be related to you.
D. None of the
above.
170. You are considered to have chosen to treat your nonresident
alien spouse/RDP as a resident alien if
A. You and your
nonresident alien spouse/RDP filed a joint return in a previous year.
B. You chose to
treat your nonresident alien spouse/RDP as a resident so you could file the
joint return.
C. You have not
revoked that choice by the extended due date for filing the return at issue.
D. All of the above.
171.
I was married at the end of the year. Can someone other than my child qualify me
for the Head of Household filing status?
A. No.
Because you were married.
B. Yes. As long
as that person is not older than you.
C. Yes. Your
spouse can qualify you for the Head of Household filing status.
D. None of the
above.
172. Can I qualify for the Head of Household filing status if the
person that qualifies me did not live with me during the year?
A. Yes. Because
your child does not need to live with you to qualify you.
B. Yes,
if the person is your parent, he or she does not have to live with you to
qualify you.
C. No. Everyone
has to live in your household in order for you to qualify for the head of
household filing status and there are no exceptions.
D. None of the
above.
173. I was married at the end of the year. Can I qualify for the
Head of Household filing status if I lived with my wife during part of the last
six months of the year?
A. Yes, as long
as you did not live together on the last day of the year.
B. Yes, as long
as you did not live together for more than six months of the year.
C. No.
Because you were married and therefore you do not meet certain
requirements to be considered unmarried.
D. None of the
above.
174. Can I qualify for the Head of Household filing status even
though the qualifying person is not my relative?
A. No. Only
certain relatives can qualify you for
the Head of Household filing status.
B. Yes, as long
as this person lived in your home for the entire year.
C. Yes, because
the person does not have to be your relative as long as you paid for their total
support.
D. Being related
has nothing to do with the Head of Household filing status.
175. The Head of Household (HOH) filing status gives you the
benefit of
A. A lower tax.
B. A higher
standard deduction that the that of Single or Married Filing Separately filing
status.
C. A higher tax
rate and a lower standard deduction.
D.
Both A and B
above.
176. You paid $5,100 in child care, you are single and earned $28,000 for the
entire year, and you have one qualifying child. What is your child and dependent
care expenses credit for tax year 2010?
A.
$840. B.
$420. C.
$1,428. D.
$714.
177. I
want to file my return and have no tax liability. If I claim the child and
dependent care expenses credit, would I still get a refund for California based
on my Child and dependent Care expenses credit?
A.
Yes, tax
liability can be zero, and you can still qualify because for
California credit is refundable. B.
No, the amount of credit is limited to the amount of tax liability and is
non-refundable. C.
No, even if you have tax, the child and dependent care credit would not cancel
it and thus there is no reason to claim it. D.
No, California does not have a Child and Dependent Care Expenses Credit.
178. Juan
and Maria Escobedo are married and keep up a home for their two pre-school
children. In tax year 2010, they claimed their children as dependents. Juan
earned $25,200 and Maria earned $8,200. They paid $5,900 in work related child
care expenses. What is their credit?
A.
$1,475. B.
$737.50
C.
$1,711 D.
$738
179. To claim the Child and
Dependent Care Expenses Credit for California, you must complete and attach to
your California tax return the following:
A.
Federal Form 2441 or Schedule 2. B.
FTB Form 3506. C.
Federal Form 3102 or Schedule 3. D.
Federal Form 2106 or Schedule C.
180. In tax year 2010, if your
gross income is $45,000 and your federal child and dependent care expenses
credit amount was $480, then your California Credit is
A.
$206 B.
$0 C.
$240 D.
$206.40
181. For Federal the child and
dependent care expenses credit is a non-refundable credit and for California the
credit is
A.
Not allowed. B.
Amount of credit if is always greater than Federal credit. C.
The same as federal. D.
A refundable credit.
182. What is the percentage of the
federal Child and Dependent Expenses Care credit that is allowed for California
for taxpayers who earned more than $100,000 in 2010?
A.
42% B.
50% C.
63% D.
0%
183. In tax
year 2010, to qualify for the California child and dependent care expenses
credit, your federal adjusted gross income must be less than
A.
$40,000 B.
$70,000 C. $100,000 D.
$15,000
184. In tax year 2010, if you are
head of household and you would like to qualify for renter's credit, you would
not qualify if your income is over what amount?
A.
$34,936 B.
$68,824 C.
$66,544 D.
$69,444
185. If for more than half of the
year, you lived in the home of a parent, foster parent, or legal guardian in
2010 who can claim you as a dependent, then
A.
You do not qualify for the renter's
credit.
B.
You prepare a renter's qualification record and divide the credit accordingly. C.
You qualify to claim the credit because everyone in the household qualifies as
long as you pay at least $1.00 of rent. D.
Since you are a dependent, you still qualify for $30 of renter's credit.
186. The non-refundable renter's
credit qualification record must be kept with your records; therefore, you
should not mail it.
True
False
187. To qualify for Renter's
credit, you must have paid rent for at least 6 months of the tax year and your
principal residence must have been in California.
True
False
188. If
your filing status was married filing separate, you cannot claim the California
renter's credit.
True
False
189. If a
single employer withheld California State Disability Insurance (SDI) from your
wages at more than 1.1% of your gross wages,
A.
Contact the
employer for
refund. B.
Claim excess SDI on your Form 540/540A. C.
Contact the state of California for a refund. D.
You cannot get a refund because once W2 is filed it is too late.
190. You may be entitled to claim
a credit for excess SDI on Form 540/540A if
A.
You had two or more employers during 2010. B.
You received more than $93,316 in wages. C.
The amounts of SDI withheld appear on your forms W2. D.
All of the above
191. I you discover that you made an error on your California
income tax return after you filed it, use Form 540X to correct your return.
True
False
192. For purposes of claiming the
California Child and Dependent Care Expenses Credit, if your child turns age 13
during the year
A.
The child is not a qualifying person because he has to have been under age 13 at
the end of the year. B.
The child's age does not matter as long as he is your dependent. C.
The child is
a qualifying person only for the
part of the year he or she was 12 years old. D.
The child is not a qualifying child because the child has to be in pre-school.
193. In tax year 2010, my wife did
not work all year because she was not able to care for herself for the entire
year. I worked and earned $21,050. We have one qualifying child for the Child
and Dependent care credit. We paid $2,000 for child care. How much credit can we
qualify for?
A.
$620 B. $310 C.
$1,000 D.
$744
194. You are single and only paid
rent for one month in 2010. You qualify to claim the renter's credit.
True
False
195. If you
do not e-file your tax return, you will receive your refund check just as fast
because almost everyone is e-filing and there are less paper returns to be
processed.
True
False
196. If
there is no difference between your federal and California income or deductions,
do not file a Schedule CA (540).
True
False
197. Who
is a qualifying individual for the Child and Dependent Care Credit?
A.
A dependent of the taxpayer under 13 years of age. B.
A dependent of the taxpayer who is physically or mentally unable to care for him
or herself. C.
Spouse of the taxpayer who is physically or mentally unable to care for him or
herself. D.
Any of the above
198. One of the requirements to
qualify to claim the Child and Dependent Care Credit for California is that
A.
You
paid for care so you (and your spouse/RDP) could work or look for work. B.
Your qualifying child is over 13 years of age just as long as he or she is not
over 19. C.
Your adjusted gross income must be more than $100,000 for 2010. D.
You have no earned income for 2010.
199. Your
must pay at least 50% of the amount owed by April 15, 2011 to avoid interest and
penalty charges.
True
False
200. You qualify for the
Nonrefundable Renter's Credit if you rented a property for more than half the
year that was exempt from California property tax in 2010.
