Answer the following statements true (T) or false (F)
1. The portion of a taxpayer's wages that are garnished by court order and forwarded to pay a delinquent bank loan are not taxable income to the taxpayer.
2. A taxpayer may not avoid responsibility for payment of income taxes by assigning the income to a third party.
3. For federal income tax purposes, income is allocated between a husband and wife depending on the state of residence.
4. In community property states, income from separate property owned before marriage is always considered separate income after marriage.
5. In common law states, all income is split evenly between the two spouses.
1. FALSE
The income is constructively received by the taxpayer.
2. TRUE
The assignment of income doctrine requires that income earned on property be recognized by the owner of the property.
3. TRUE
Most states follow a common law property system, but a few follow a community property system.
4. FALSE
In Idaho, Louisiana, Texas, and Wisconsin, such income is community income.
5. FALSE
In common law states, income is generally taxed to the spouse who earned it.
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Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true?
a. Floyd's heirs must sell the car to Tim. b. Floyd's heirs must continue to negotiate the offer and sell the car, if a reasonable price can be determined. c. The offer terminates automatically upon Floyd's death. d. There is a contract if Tim accepts before learning of Floyd's death.
The objective of the first phase of network design is to
A) maximize total profits, taking into account the expected margin and demand in each market. B) select a set of desirable sites within each region where facilities are to be located. C) identify regions where facilities will be located, their potential roles, and their approximate capacity. D) specify what capabilities the supply chain network must have to support a firm's competitive strategy.
______________________________ is the process of comparing actual information about input costs and usage to standards. ?
Fill in the blank(s) with the appropriate word(s).
Your new firm is operating in an all-cash environment without taxes. You sold $1,000 of inventory for three times the amount you paid for it
If this was the only transaction, which of the following would most closely match the entries on your income statement? A) Revenues = $1,000, expenses = $1,000, profit = $0 B) Cash increases by $3,000, inventory decreases by $1,000, and retained earnings increases by $2,000. C) Revenues = $3,000, expenses = $0, profit = $3,000 D) Revenues = $3,000, expenses = $1,000, profit = $2,000