Tax Accounting

3 CHAPTER TAX DETERMINATION; PERSONAL AND DEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Instructor: The test items in both the print Test Bank and ExamView test-creation software are numbered by question type within each chapter. Thus, users of ExamView can more easily preview their selections using the printed Test Bank in the same numbering system.Status: Present Topic TRUE OR FALSE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Level of current income tax rates Definition of gross income Income taxation and example of global approach Effect of AGI on the medical deduction Filing status: surviving spouse versus married filing separate Additional standard deductions: single and married amounts Standard deduction and adjustment for inflation Additional standard deduction of a dependent Itemized deductions versus standard deduction Basic and additional standard deductions Itemized deductions or standard deduction Itemized deductions or stan dard deduction Itemized deductions or standard deduction Standard deduction for resident alien Standard deduction requirements when married persons file separately Standard deduction: year of death Dependents standard deduction Dependents standard deduction Dependents standard deduction Dependents personal exemption not allowed Claiming a spouse on a separate return Determination of marital status Determination of marital status Gross income test and scholarships Support test and capital expenditures Support test and unexpended funds of dependent Multiple support agreement: amount of support rendered by dependent Divorce decree silent: custodial parent wins Relationship test for former in-laws and ex-wife 3-1 Unchanged Unchanged Unchanged Modified Unchanged New Unchanged Unchanged New Unchanged Unchanged Unchanged New Unchanged Unchanged Unchanged New New Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged New New Unchanged 7 8 10 11 12 14 15 16 19 20 21 22 23 24 25 26 1 2 3 4 5 Edition Q/P in Prior Edition Question/ Problem 29 3-2 30 Question/ Problem 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 2009 Annual Edition/Test Bank Relationship test: ex-sister-in-law Unchanged Status: Present Edition Unchanged New Unchanged Unchanged Unchanged Unchanged Unchanged New New Unchanged Unchanged Unchanged New Modified Unchanged Unchanged Unchanged Modified Modified Unchanged Modified Unchanged Unchanged Unchanged 30 Q/P in Prior Edition 31 33 34 35 36 37 Topic Qualifying child: age test and full-time tudent status Qualifying child: abode test Married child and joint return test Citizenship/residency test for dependents Citizenship/residency test for dependents Stealth taxes: nature of Tax Relief Reconciliation Act of 2001 and elimination of the phaseout of exemptions Kiddie tax: earned income and support exception Kiddie tax: when not applicable Kiddie tax: how applied Kiddie tax: when parental election available; ch ild may be required to file Kiddie tax: unearned income requirement Kiddie tax: married filing jointly exception Requirements for fiscal year, timely filed return Surviving spouse status Surviving spouse status: year of death Marriage penalty: married persons filing separate returns Head of household status Head of household status Abandoned spouse status: contrast married filing separate Personal use losses versus personal use gains Long-term capital gain: lowest rate applicable Taxation of gain on collectibles Offsetting different-term capital losses to different term capital gains MULTIPLE CHOICE 40 41 42 44 45 46 47 48 49 50 51 52 53 54 1 2 3 4 5 6 7 8 9 10 11 12 13 Itemized deductions Deductions for AGI AGI determination AGI determination AGI determination AGI determination Taxable income of a dependent Taxable income of a dependent Taxable income of a dependent Taxable income of a dependent Determination of exemptions Determination of exemptions Determination of exemptions Unc hanged Unchanged Unchanged New Unchanged New Unchanged New Modified New Modified New Modified 1 2 3 5 7 9 11 13 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 14 15 Question/ Problem 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Topic Qualifying child: eligible parties Multiple support agreement Determination of exemptions Definition of a qualifying relative Exceptions to the kiddie tax Filing status for years after spouses death Widows filing status Filing status in selected situations Abandoned spouse filing status Filing status of nonqualifying abandoned spouse Loss on business and personal assets Taxation of different classes of capital gains Taxation of different classes of capital gains Capital loss limitation Netting of different-term losses and differentterm gains MATCHING 1-12 13-24 25-36 Characteristics of tax determination: personal and dependency exemptions, tax rates, filing status Characteristics of tax determination: personal and dependency exemptions, tax rates, filing status Dependency exemption categories: qualifying child and qualifying relative PROBLEMS 1 2 4 5 6 7 8 9 10 11 12 13 14 Determining AGI Determining AGI Determining AGI Taxable income of a dependent Taxable income of a dependent Taxable income of a dependent Determination of exemptions Determination of taxable income Determination of taxable income and filing status Determination of taxable income and filing status Computation of capital gains and losses Taxation of capital gains and losses Taxation of capital gains and losses Taxation of capital gains and losses: treatment of net losses and carryover possibility Unchanged Unchanged New New Modified New Unchanged Modified New Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Determination of exemptions Definition of qualifying child Unchanged Unchanged Status: Present Edition Unchanged Unchanged New New New Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged N ew New New 3-3 14 15 Q/P in Prior Edition 16 17 21 22 23 24 25 26 27 1-12 Unchanged 13-24 Unchanged 25-36 1 2 5 7 8 10 11 12 13 14 3-4 2009 Annual Edition/Test Bank Question/ Problem Topic ESSAY 1 2 3 4 5 6 7 8 10 11 12 13 14 Territorial versus global systems of income taxation Compared Treatment of scholarships for dependency exemption purposes Exceptions to the support test for dependency exemption purposes Effect of community property law on application of the gross income test to married dependents Exceptions to the gross income test for qualifying child purposes Qualifying child and tie-breaker rules Stealth tax: definition of Kiddie tax: exceptions to its application Filing status: comparison of the tax results of different types Filing status: situations which qualify and do not qualify for head of household Filing status: surviving spouse transition status Ramifications of the election to file a joint Federal income tax return with a nonresident alien Concentrating deduction s from AGI and claiming the standard deduction in alternate years Correlation between multiple support agreement and deduction for medical expenses Status: Present Edition Q/P in Prior Edition Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged New Unchanged Unchanged Unchanged Unchanged New Unchanged 1 2 3 4 5 6 7 8 9 10 11 12 9 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions TRUE/FALSE 1. Currently, the top Federal income tax rate in effect is the highest it has ever been. ANS: F The income tax rate in effect in 1944-1945 ranged from 23% to 94%. PTS: 1 REF: p. 3-3 3-5 2.As used in the income tax formula, gross income would not include the receipt of a loan the taxpayer obtained from a bank. ANS: T Borrowing money does not result in gross income. PTS: 1 REF: Example 1 3. Kim, a resident of Korea, is a citizen of the U. S. Any income Kim receives from land he owns in Korea is not subject to the U. S. income tax. ANS: F Und er the global system of taxation followed by the U. S. , foreign-sourced income is subject to tax. Although Kim is not a resident, he is a citizen of the U. S. PTS: 1 REF: Global Tax Issues on p. 3-5. 4. An decrease in the amount of a taxpayers AGI can increase the amount of medical expenses allowed as a deduction.ANS: T More medical expenses can be deducted since the 7. 5% of AGI floor will be smaller. PTS: 1 REF: Example 4 5. Because only one taxpayer is involved in both cases, the standard deduction for a surviving spouse is the same amount as that for a married person filing a separate return. ANS: F The amount of the standard deduction for a surviving spouse is the same as for married persons filing jointlyor twice that of a married person filing separately. PTS: 1 REF: Table 3-1 6. The additional standard deduction for age and blindness is the same amount for single as for married taxpayers. ANS: F For 2008, compare $1,350 (single) with $1,050 (married).PTS: 1 REF: Table 3-2 3 -6 2009 Annual Edition/Test Bank 7. The basic and additional standard deductions are subject to an annual adjustment for inflation. ANS: T The inflation adjustment is made annually to both the basic standard deduction and the additional standard deduction. PTS: 1 REF: p. 3-8 8. Tad claims his 70-year-old mother as a dependent. The mother may not claim an additional standard deduction for her age. ANS: F The mother can claim the additional standard deduction for her age. PTS: 1 REF: Example 9 9. In 2008, Sally is 72 and single. If she has itemized deductions of $6,000, she should claim the standard deduction alternative.ANS: T The standard deduction yields $6,800 ($5,450 + $1,350). PTS: 1 REF: Example 6 10. Leslie and Morgan are married and file a joint return. Both are over 65 years of age and Leslie is blind. Their standard deduction for 2008 is $13,000 ($10,900 + $1,050 + $1,050). ANS: F Their standard deduction is $14,050 ($10,900 + $1,050 + $1,050 + $1,050). PTS: 1 REF: Table 3- 1 | Table 3-2 11. Derek is a surviving spouse. If he has itemized deductions of $11,500 for 2008, Derek should not claim the standard deduction. ANS: T The standard deduction would only provide $10,900. PTS: 1 REF: p. 3-8 | Table 3-1 12. Cameron and Carley are ages 70 and 69 and file a joint return. If they have itemized deductions of 13,300 for 2008, they should not claim the standard deduction. ANS: T The standard deduction provides only $13,000 ($10,900 + $1,050 + $1,050). PTS: 1 REF: p. 3-8 | Table 3-1 | Table 3-2 13. Claire, age 66, claims head of household filing status. If she has itemized deductions of $8,500 for 2008, she should not claim the standard deduction. ANS: F The standard deduction yields $9,350 ($8,000 + $1,350). PTS: 1 REF: p. 3-8 | Table 3-1 | Table 3-2 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 14. Enrique is a citizen of Honduras and a resident of the U. S. If he files a U. S. income tax return, Enrique cannot c laim the standard deduction. ANS: F Either U. S. itizenship or residency will suffice in order to claim the standard deduction. PTS: 1 REF: p. 3-9 3-7 15. Dan and Donna are husband and wife and file separate returns for the year. If Dan itemizes his deductions from AGI, Donna cannot claim the standard deduction. ANS: T If Dan itemizes, Donna must itemize. PTS: 1 REF: p. 3-9 16. Logan, an 80-year-old widower, dies on January 2, 2008. Even though he lived for only two days, on his final income tax return for 2008, the full basic and additional standard deductions can be claimed. ANS: T No proration of the standard deduction is necessary in this case. PTS: 1 REF: p. 3-9 17. Benjamin, age 16, is claimed as a dependent by his parents.During 2008, he earned $700 at a car wash. Benjamins standard deduction is $1,200 ($900 + $300). ANS: F His standard deduction is the greater of $900 or $1,000 ($700 + $300). PTS: 1 REF: Example 10 18. Debby, age 18, is claimed as a dependent by her mother. During 2008, she earned $1,100 in interest income on a savings account. Debbys standard deduction is $1,400 ($1,000 + $300). ANS: F Debbys standard deduction is the minimum allowed of $900. PTS: 1 REF: Example 8 19. Katrina, age 16, is claimed as a dependent by her parents. During 2008, she earned $5,200 as a checker at a grocery store. Her standard deduction is $5,500 ($5,200 earned income + $300).ANS: F Her standard deduction cannot exceed the regular standard deduction available to single persons (or $5,450 for 2008). PTS: 1 REF: Example 11 3-8 20. 2009 Annual Edition/Test Bank A dependent cannot claim a personal exemption on his or her own return. ANS: T PTS: 1 REF: Example 12 21. When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption. ANS: F An exemption is allowed if the spouse has no gross income and is not claimed as a dependent by another. PTS: 1 REF: p. 3-11 22. Butch and Minerva are divorced in December of 2008. Since they were not married at the end of the year, they are considered not married for 2008.ANS: T They must be married at the end of the year (unless one spouse dies) in order to be considered married. PTS: 1 REF: Table 3-3 23. For the year a spouse dies, the surviving spouse is considered married for the entire year for income tax purposes. ANS: T PTS: 1 REF: Table 3-3 24. In determining whether the support test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered. ANS: F In applying the support test, all of the scholarship is disregarded. Scholarships are treated differently for purposes of the gross income test. PTS: 1 REF: Example 23 25. Scott buys his mother a sewing machine. For purposes of meeting the support test, Scott can count the cost of the sewing machine.ANS: T Capital expenditures can be considered in determining support. It is assumed that the sewing machine is largely for the mothers use. PTS: 1 REF: Example 26 2 6. If the individual does not spend funds that have been received from another source (e. g. , Social Security benefits), the unexpended amounts are not considered for purposes of the support test. ANS: T The funds are counted only if used for support purposes. PTS: 1 REF: Example 24 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 3-9 27. Using borrowed funds from a mortgage on her home, Lisa provides 55% of her support, while her daughters furnished the rest.Lisa cannot be claimed as a dependent under a multiple support agreement. ANS: T The daughters do not provide more than half of their mothers support. In this situation, the mother is self-supporting. PTS: 1 REF: Example 25 28. Roy and Linda were divorced in 2007. The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents. If Roy furnished more than half of their support, he can claim them as dependents. ANS: F Not unles s Linda consents. PTS: 1 REF: p. 3-17 29. In 2008, Hal furnishes more than half of the support of his ex-wife and her father, neither of whom lives with him. The divorce occurred in 2007.Hal may claim the father-in-law but not the ex-wife as dependents. ANS: T The father-in-law meets the relationship test, but the ex-wife does not. However, except in the year of divorce, an ex-wife can be a dependent under the member of the household test. PTS: 1 REF: p. 3-14 30. After her divorce, Hope continues to support her ex-husbands sister, Cindy, who does not live with her. Hope cannot claim Cindy as a dependent. ANS: F For purposes of the relationship test, divorce does not change in-law status. PTS: 1 REF: p. 3-14 31. Darren, age 20 and not disabled, earns $4,500 during 2008. Darrens parents cannot claim him as a dependent unless he is a full-time student.ANS: T Being age 20, Darren cannot be a qualifying child unless he is a full-time student. As a qualifying child, he is exempt from the gross income test. PTS: 1 REF: p. 3-12 32. Keith, age 17 and single, earns $3,800 during 2008. Keiths parents can claim him as a dependent even if he does not live with them. ANS: F Keith does not meet the definition of a qualifying child; so the gross income test does apply. PTS: 1 REF: p. 3-12 | p. 3-14 3-10 2009 Annual Edition/Test Bank 33. Sarah furnishes more than 50% of the support of her son and daughter-in-law who live with her. If the son and daughter-in-law file a joint return, Sarah cannot claim them as dependents. ANS: F If certain conditions are satisfied (e. g. they did not have to file but did so to obtain a refund), the son and daughter-in-law can qualify as Sarahs dependents. PTS: 1 REF: Example 28 34. Hernando, a resident of California, supports his parents who are residents of Mexico but citizens of El Salvador. Hernando can claim his parents as dependents. ANS: T The parents are residents of Mexico. PTS: 1 REF: p. 3-17 35. Carol lives in Michigan and supports her nephew who is a Canadian citizen that resides in Ontario, Canada. Carol may not claim her nephew as a dependent. ANS: F As a resident of Canada, Carols nephew meets the citizenship or residence test. PTS: 1 REF: p. 3-17 36. Stealth taxes are directed at higher income taxpayers.ANS: T Such stealth taxes as the phaseout of exemptions do not begin until taxpayers reach significant income levels. PTS: 1 REF: Tax in the News on p. 3-20 37. The phaseout of the benefits of personal and dependency exemptions for certain taxpayers is scheduled to be eliminated. ANS: T But the rescission is not completed until 2010. PTS: 1 REF: p. 3-18 38. The kiddie tax does not apply as to a child whose earned income is more than one-half of his or her support. ANS: T PTS: 1 REF: p. 3-23 39. Once a child reaches age 19, the kiddie tax no longer applies. ANS: F The kiddie tax does apply if the child is a full-time student under age 24. PTS: 1 REF: p. -23 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 3-11 40. When the kiddie tax applies and the parents file separate returns, the applicable parent (for determining the parental tax) is the one with the greater taxable income. ANS: T PTS: 1 REF: p. 3-25 41. When the kiddie tax applies, the child need not file an income tax return as the childs income will be reported on the parents return. ANS: F The child need not file only if the parental election (if available) picks up all of the childs income. PTS: 1 REF: p. 3-24 42. A child who has unearned income of $1,800 or less cannot be subject to the kiddie tax. ANS: T PTS: 1 REF: p. 3-23 43. A child who is married cannot be subject to the kiddie tax.ANS: F Only if he or she files a joint return is such child exempt from the kiddie tax. PTS: 1 REF: p. 3-23 44. An individual taxpayer uses a fiscal year February 1-January 31. The due date of this taxpayers Federal income tax return is June 15 of each tax year. ANS: F The tax return is due on or before the fifteenth day of the fourth month following the end of the fiscal year. Here, the due date is May 15. PTS: 1 REF: p. 3-27 45. Surviving spouse filing status begins in the year in which the deceased spouse died. ANS: F Surviving spouse filing status begins in the year following the year of death. PTS: 1 REF: Example 38 46. In January 2008, Jakes wife dies and he does not remarry.For tax year 2008, Jake may not be able to use the filing status available to married persons filing joint returns. ANS: T If the executor of his wifes estate does not agree to filing a joint return, Jakes only option is to file using married, filing separate status. PTS: 1 REF: p. 3-30 3-12 2009 Annual Edition/Test Bank 47. For tax purposes, married persons filing separate returns are treated the same as single taxpayers. ANS: F Single taxpayers can enjoy many tax benefits that are unavailable to married persons filing separatelye. g. , earned income credit, credit for child and dependent care expenses, deduction for interest paid on student loans. PTS: 1 REF: p. 3-29 | p. 3-30 48.Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live. Crissa, age 22, earns $11,000 during 2008 as a model. Katelyn qualifies for head of household filing status. ANS: F Crissa is not Katelyns dependent. She fails the age test for qualifying child purposes and the gross income test for the qualifying relative category. PTS: 1 REF: Example 41 49. Mike is divorced and maintains a home in which he and his dependent niece live. Mike qualifies for head of household filing status. ANS: T To be head of household, the dependent involved must meet the relationship test. Such is the case with a niece. PTS: 1 REF: Example 39 50.In terms of income tax consequences, abandoned spouses are treated the same way as married persons filing separate returns. ANS: F An abandoned spouse is treated as a single taxpayer. Consequently, an abandoned spouse qualifies for head of household filin g status. PTS: 1 REF: p. 3-31 51. In 2008, Gordon sold his personal use automobile for a loss of $6,000. He also sold a personal stamp collection for a gain of $7,000. As a result of these sales, $7,000 is subject to income tax. ANS: T Gordon must recognize a capital gain of $7,000. The $6,000 loss on the sale of the personal use automobile is nondeductible. PTS: 1 REF: Example 43 52. In some cases, the tax on long-term capital gains can be as low as 0%.ANS: T If the taxpayers tax bracket is 15% (or less), the 0% rate applies. PTS: 1 REF: Example 46 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 3-13 53. Gain on the sale of collectibles held for more than 12 months is subject to tax at a rate no higher than 28%. ANS: T PTS: 1 REF: p. 3-33 54. For 2008, Stuart has a short-term capital loss, a collectible long-term capital gain, and a longterm capital gain from land held as investment. The short-term loss is first applied to the collectible capital gain. ANS: T PTS: 1 REF: Example 48 MULTIPLE CHOICE 1. Which, if any, of the following is a deduction from AGI? a. Alimony payments. b. Child support payments. c.Unreimbursed employee expenses. d. Loss on the sale of a personal automobile. e. None of the above. ANS: C Alimony payments (choice a. ) are deductions for AGI. Child support payments (choice b. ) and personal capital losses (choice d. ) are nondeductible items. PTS: 1 REF: Example 2 | Example 43 | Exhibit 3-3 2. Which, if any, of the following is a deduction for AGI? a. Alimony payments. b. Interest on home mortgage. c. Unreimbursed employee expenses. d. Charitable contributions. e. None of the above. ANS: A Except for alimony (choice a. ), all other items (choices b. , c. , and d. ) are deductions from AGI. PTS: 1 REF: p. 3-6 | Exhibit 3-3 3.During 2008, Marie had the following transactions: Salary Bank loan (proceeds used to buy personal auto) Alimony received Child support received Inheritance from deceased aunt $40,000 10,000 6,000 12,000 50,000 3-14 Maries AGI is: a. $40,000. b. $46,000. c. $52,000. d. $96,000. e. None of the above. 2009 Annual Edition/Test Bank ANS: B $40,000 (salary) + $6,000 (alimony) = $46,000. The inheritance and child support are exclusions. Amounts borrowed are not income. PTS: 1 REF: Example 1 | Exhibit 3-1 4. During 2008, Sam had the following transactions: Salary Interest income on General Electric Corporation bonds Gift from parents Contribution to traditional IRA Lottery winnings Sams AGI is: a. $59,000. b. $61,000. c. $65,000. d. $85,000. e. None of the above.ANS: E $60,000 (salary) + $2,000 (interest on GE bonds) $5,000 (IRA contribution) + $3,000 (lottery winnings) = $60,000. The gift from his parents is a nontaxable exclusion. PTS: 1 REF: p. 3-5 | Exhibit 3-1 | Exhibit 3-2 $60,000 2,000 24,000 5,000 3,000 5. During 2008, Colin had the following transactions: Salary Interest income on City of Denver bonds Damages for personal injury (car accident) Punitive damages (same car accident) Cash dividends from General Motors Corporation stock Colins AGI is: a. $74,000. b. $120,500. c. $124,000. d. $124,500. e. $224,000. ANS: C $70,000 (salary) + $50,000 (punitive damages) + $4,000 (cash dividends) = $124,000. The damages from personal injury and the municipal bond interest are nontaxable exclusions.PTS: 1 REF: Example 2 | Exhibit 3-1 | Exhibit 3-2 $ 70,000 500 100,000 50,000 4,000 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 6. In 2008, Walter had the following transactions: Salary Capital loss from a stock investment Moving expense to change jobs Received repayment of $10,000 loan he made to his brother in 2004 (includes interest of $1,000) Property taxes on personal residence Walters AGI is: a. $67,000. b. $68,000. c. $69,000. d. $78,000. e. None of the above. $80,000 (4,000) (10,000) 11,000 2,000 3-15 ANS: B $80,000 (salary) $3,000 (allowable loss on stock investment) $10,000 (moving expenses ) + $1,000 (interest on loan) = $68,000.The unused loss of $1,000 from the stock investment sale can be carried over to 2009. The loan repayment of $10,000 is a return of capital and has no effect on gross income. Property taxes paid on a personal residence is a deduction from AGI and has no impact on the determination of AGI. PTS: 1 REF: p. 3-5 | p. 3-34 | Exhibit 3-3 7. Monica, age 18, is claimed by her parents as a dependent. During 2008, she had interest income from a bank savings account of $1,000 and income from a part-time job of $4,500. Monicas taxable income is: a. $4,500 $4,800 = $0. b. $5,500 $5,350 = $150. c. $5,500 $4,800 = $700. d. $5,500 $900 $3,400 = $1,200. e. None of the above.ANS: C Monicas standard deduction is $4,500 (earned income) + $300 = $4,800. Thus, her taxable income is $700 ($5,500 $4,800). She is not eligible for a personal exemption. PTS: 1 REF: Example 10 8. Tony, age 15, is claimed as a dependent by his grandmother. During 2008, Tony had interest inc ome from General Motors Corporation bonds of $1,000 and earnings from a part-time job of $700. Tonys taxable income is: a. $0. b. $1,700 $700 $900 = $100. c. $1,700 $1,000 = $700. d. $1,700 $900 = $800. e. None of the above. ANS: C Tonys standard deduction of $1,000 ($700 + $300) partially offsets his gross income of $1,700, resulting in taxable income of $700. PTS: 1 REF: Example 10 3-16 2009 Annual Edition/Test Bank 9.Anna is a widow, age 74 and blind, who is claimed as a dependent by her son. During 2008, she received $4,800 in Social Security benefits, $1,200 in bank interest, and $1,800 in cash dividends from stocks. Annas taxable income for 2008 is: a. $3,000 $900 $2,700 = $0. b. $3,000 $2,600 = $400. c. $3,000 $900 $1,350 = $750. d. $7,800 $900 $2,700 = $4,200. e. None of the above. ANS: A Although Anna has no earned income, she is entitled to a minimum regular standard deduction of $900. She also is allowed additional standard deductions for age and blindness of $2,700 ($1,3 50 + $1,350). At this level of income, the Social Security benefits are a nontaxable exclusion.PTS: 1 REF: Example 9 | Exhibit 3-1 | Table 3-2 10. Grace, age 67 and single, is claimed as a dependent on her sons tax return. During 2008, she had interest income of $2,400 and $700 of earned income from baby sitting. Graces taxable income is: a. $150. b. $750. c. $850. d. $2,100. e. None of the above. ANS: B $3,100 gross income greater of $900 or ($700 earned income + $300) $1,350 (additional standard deduction for age 65 and older) = $750. She is not eligible for a personal exemption. PTS: 1 REF: Example 9 11. Troy and Edie are married and under 65 years of age. During 2008, they furnish more than half of the support of their 18-year old daughter, Jobeth, who lives with them.Jobeth earns $15,000 from a part-time job, most of which she sets aside for future college expenses. Troy and Edie also provide more than half of the support of Troys cousin who does not live with them. Edies fathe r, who died on January 3, 2008, at age 80, has for many years qualified as their dependent. How many personal and dependency exemptions should Troy and Edie claim? a. Two. b. Three. c. Four. d. Five. e. None of the above. ANS: C Four (Troy, Edie, Jobeth, and the father). Jobeth can be claimed because as a qualifying child she is not subject to the gross income test. Troys cousin does not meet the relationship test and is not a member of their household.It is assumed that Edies father, as was true in the past, qualified as a dependent up to the point of death. PTS: 1 REF: p. 3-11 | p. 3-12 | p. 3-14 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 3-17 12. Evan and Eileen Carter are husband and wife and file a joint return for 2008. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 25), who is a full-time medical student. Pamela receives a $3,400 scholarship covering her room and board a t college. They furnish all of the support of Belinda (Evans grandmother), who is age 70 and lives in a nursing home.They also support Peggy (age 66), who is a friend of the family and lives with them. How many personal and dependency exemptions may the Carters claim? a. Two. b. Three. c. Four. d. Five. e. None of the above. ANS: D Five (Evan, Eileen, Pamela, Belinda, and Peggy). Personal exemptions for the Carters and dependency exemptions for the rest. Pamela is not a qualifying childalthough a full-time student, she is not under age 24. Pamela does meet the qualifying relative category even though the type of scholarship aid she receives is taxable (the gross income test is satisfied). Belinda is not a member of the household but satisfies the relationship test.Peggy does not satisfy the relationship test but is a member of the household. PTS: 1 REF: p. 3-11 | p. 3-12 | p. 3-14 13. In which, if any, of the following situations may the individual not be claimed as a dependent of t he taxpayer? a. A former spouse who lives with the taxpayer (divorce took place this year). b. A stepmother who does not live with the taxpayer. c. A married daughter who lives with the taxpayer. d. A half brother who does not live with the taxpayer and is a citizen and resident of Canada. e. A cousin who lives with the taxpayer. ANS: A In the year of divorce, a former spouse cannot qualify under the member of the household test (choice a. ). The stepmother meets the relationship test (choice b. ).A married daughter can be claimed as long as she does not violate the joint return test (choice c. ). In the case of the half brother, Canada or Mexico can satisfy the residency test (choice d. ). A cousin does not satisfy the relationship test so must be a member of the household (choice e. ). PTS: 1 REF: p. 3-14 | p. 3-17 3-18 2009 Annual Edition/Test Bank 14. During 2008, Jen (age 66) furnished more than 50% of the support of the following persons: Jens current husband who has no income and is not claimed by someone else as a dependent. Jens stepson (age 18) who lives with her and earns $6,000 as a dance instructor. He dropped out of school a year ago.Jens ex-husband who does not live with her. The divorce occurred two years ago. Jens former brother-in-law who does not live with her. Presuming all other dependency tests are met, on a separate return how many personal and dependency exemptions may Jen claim? a. Two. b. Three. c. Four. d. Five. e. None of the above. ANS: C All of the persons listed except the ex-husband meet either the relationship or member of the household tests. The current husband qualifies as he has no income and is not claimed as a dependent by someone else. The stepson avoids the gross income limitation since he is a qualifying child under 19 years of age. PTS: 1 REF: p. 3-11 | p. 3-12 | p. 3-14 15.A qualifying child cannot include: a. A nonresident alien. b. A married son who files a joint return. c. An uncle. d. A daughter who is away at co llege. e. A brother who is 28 years of age and disabled. ANS: C A qualifying child can be a nonresident alien under the adopted child exception (choice a. ). The filing of a joint return is not fatal if filing is not required and its purpose is to obtain a tax refund (choice b. ). An uncle does not meet the relationship test (choice c. ). A temporary absence is permissible under the domicile test (choice d. ). A brother meets the relationship test, and disability waives the age test (choice e. ). PTS: 1 REF: p. 3-12 | p. 3-17 16.Ellen, age 12, lives in the same household with her father, grandfather, and uncle. The cost of maintaining the household is provided by her grandfather (40%) and her uncle (60%). Disregarding tie-breaker rules, Ellen is a qualifying child as to: a. All parties involved (i. e. , father, grandfather, and uncle). b. Only her grandfather and uncle. c. Only her uncle. d. Only her father. e. None of the above. ANS: A Under the abode and relationship tests, Ellen is a qualifying child as to all parties. The amount of support provided by each person is not relevant. PTS: 1 REF: p. 3-12 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 17.Millie, age 80, is supported during the current year as follows: Weston (a son) Faith (a daughter) Jake (a cousin) Brayden (unrelated close family friend) Percent of Support 10% 35% 35% 20% 3-19 During the year, Millie lives with Brayden. Under a multiple support agreement, indicate which parties can qualify to claim Millie as a dependent. a. Weston, Faith, Jake, and Brayden. b. Faith and Brayden. c. Weston and Faith. d. Faith, Jake, and Brayden. e. None of the above. ANS: B Weston does not qualify because he does not contribute more than 10% of the support. (This eliminates choices a. and c. ) Jake does not qualify because he satisfies neither the relationship nor member of the household tests. (This eliminates choices a. and d. Brayden does not meet the relationship test, but he does satisfy the member of the household test. PTS: 1 REF: Example 27 18. The Hutters filed a joint return for 2008. They provide more than 50% of the support of Carla, Melvin, and Aaron. Carla (age 18) is a cousin and earns $4,000 from a part-time job. Melvin (age 25) is their son and is a full-time law student. He received from the university a $3,800 scholarship for tuition. Aaron is a brother who is a citizen of Israel but resides in Mexico. Carla and Melvin live with the Hutters. How many personal and dependency exemptions can the Hutters claim on their Federal income tax return? a. Two. b. Three. c.Four. d. Five. e. None of the above. ANS: C The Hutters can claim two personal exemptions and two dependency exemptions. Carla is not a qualifying child and is subject to the gross income test. Melvin is not a qualifying child due to age (not under 24) but is a qualifying relative. meets Melvin the gross income test since this type of scholarship is nontaxable. Aaron me ets the residency requirement. PTS: 1 REF: p. 3-11 | p. 3-12 | p. 3-17 | Example 19 | Example 21 3-20 2009 Annual Edition/Test Bank 19. For the qualifying relative rule (for dependency exemption purposes): a. The dependent must be under age 19 or a full-time student under age 24. b.The dependent must reside with the taxpayer claiming the exemption. c. The dependent need not be related to the taxpayer claiming the exemption. d. The dependent must be a citizen or resident of the U. S. e. None of the above. ANS: C Choices a. and b. relate to the qualifying child rules. An unrelated person can qualify if a member of taxpayers household (choice c. ). A dependent can be a citizen or resident of Canada or Mexico (choice d. ). PTS: 1 REF: Concept Summary 3-1 20. For tax year 2008, an exception to the kiddie tax rules includes: a. A child who is a full-time student. b. A child who is married and files a joint return. c. A child who is 18 years old. d.A child whose unearned income is more tha n half of his or her support. e. None of the above. ANS: B Student status (choice a. ) is relevant only to include, in the application of the tax, those at least 19 but under age 24. Choice c. relates to pre-2008 rules. Choice d. would be an exception if the reference was to earned income (not unearned income). PTS: 1 REF: p. 3-23 21. Kyle, whose wife died in December 2005, filed a joint tax return for 2005. He did not remarry, but has continued to maintain his home in which his two dependent children live. What is Kyles filing status as to 2008? a. Head of household. b. Surviving spouse. c. Single. d. Married filing separately. e.None of the above. ANS: A Kyle, who filed a joint return in 2005, was entitled to file as a surviving spouse in 2006 and 2007. In 2008, he will be entitled to file as a head of household. PTS: 1 REF: Example 38 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 3-21 22. Emily, whose husband died in December 2008, mai ntains a household in which her dependent daughter lives. Which (if any) of the following is her filing status for the tax year 2008? (Note: Emily is the executor of her husbands estate. ) a. Single. b. Married, filing separately. c. Surviving spouse. d. Head of household. e. Married, filing jointly.ANS: E As the executor, it is unlikely that she would refuse to consent to a joint return. Since she is deemed married in the year of her husbands death, she cannot file as single (choice a. ) or head of household (choice d. ). She does not qualify for surviving spouse status until the next year (i. e. , 2009). PTS: 1 REF: p. 3-30 23. Which of the following taxpayers may file as a head of household in 2008? Ron provides all the support for his mother, Betty, who lives by herself in an apartment in Fort Lauderdale. Ron pays the rent and other expenses for the apartment and properly claims his mother as a dependent. Tammy provides over one-half the support for her 18-year old brother, Dan. Dan earned $4,200 in 2008 working at a fast food restaurant and is saving his money to attend college in 2009. Dan lives in Tammys home. Joes wife left him late in December of 2007. No legal action was taken and Joe has not heard from her in 2008. Joe supported his 6-year-old son, who lived with him throughout 2008. a. Ron only. b. Tammy only. c. Joe only. d. Ron and Joe only. e. Ron, Tammy, and Joe. ANS: E Ron may file as a head of household. His mother is not required to live in his household in order for him to qualify as a head of household. Tammy can claim Dan as a dependent because Dan is a qualifying child and is not subject to the gross income requirement.Joe can file as a head of household under the abandoned spouse rules. PTS: 1 REF: p. 3-30 | p. 3-31 3-22 2009 Annual Edition/Test Bank 24. Wilma is married to Herb, who abandoned her in 2006. She has not seen or communicated with him since June of that year. She maintains a household in which she and her two dependent child ren live. Which of the following statements about Wilmas filing status in 2008 is correct? a. Wilma can use the rates for single taxpayers. b. Wilma can file a joint return with Herb. c. Wilma can file as a surviving spouse. d. Wilma can file as a head of household. e. None of the above statements is appropriate. ANS: D Wilma meets the abandoned spouse rules.Therefore, she can file as a head of household. Otherwise, her filing status would be married, filing separately. PTS: 1 REF: p. 3-31 25. Arnold is married to Sybil, who abandoned him in 2006. He has not seen or communicated with her since April of that year. He maintains a household in which their son, Evans, lives. Evans is age 25 and earns over $20,000 each year. For tax year 2008, Arnolds filing status is: a. Married, filing jointly. b. Married, filing separately. c. Head of household. d. Surviving spouse. e. Single. ANS: B Arnold cannot file jointly without Sybils consent (choice a. ). He is not an abandoned spouse since Ev ans is not a dependent child.Evans cannot be claimed as a qualifying child (age test) and is not a qualifying relative (gross income test). Because Arnold is still treated as being married, his only option is married, filing separately (choice b. ). PTS: 1 REF: p. 3-29 to 3-32 26. During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss. Presuming adequate income, how much of these losses may Kim claim? a. $0. b. $1,000. c. $2,000. d. $3,000. e. None of the above. ANS: C The loss on the business auto of $1,000 is an ordinary loss, while the loss on the stock investment of $1,000 is a capital loss. The loss on the yacht of $1,000 is personal and, therefore, cannot be deducted.PTS: 1 REF: p. 3-33 | Example 43 | Example 44 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 27. Perry is in the 33% tax bracket. During 2008, he had the following capital asset transactions: Gain from the sale of a stamp collection (held for 10 years) Gain from the sale of an investment in land (held for 4 years) Gain from the sale of stock investment (held for 8 months) Perrys tax consequences from these gains are as follows: a. (15% $10,000) + (28% $30,000) + (33% $4,000). b. (15% $30,000) + (33% $4,000). c. (5% $10,000) + (28% $30,000) + (33% $4,000). d. (15% $40,000) + (33% $4,000). e. None of the above. 30,000 10,000 4,000 3-23 ANS: A Collectibles are taxed at a maximum of 28%, while long-term capital gains are subject to a top rate of 15%. Short-term capital gains are treated the same as ordinary income. PTS: 1 REF: p. 3-33 28. Kirby is in the 15% tax bracket and had the following capital asset transactions during 2008: Long-term gain from the sale of a coin collection Long-term gain from the sale of a land investment Short-term gain from the sale of a stock investment Kirbys tax consequences from these gains are as follows: a. (5% $10,000) + ( 15% $13,000). b. (0% $10,000) + (15% $13,000). c. (15% $13,000) + (28% $11,000). d. (15% $23,000). . None of the above. ANS: B Collectibles and short-term capital gains are taxed at Joans regular 15% tax bracket, while longterm capital gains are subject to a rate of 0% (5% prior to 2008). PTS: 1 REF: p. 3-33 $11,000 10,000 2,000 29. For the current year, David has salary income of $80,000 and the following property transactions: Stock investment sales Long-term capital gain Short-term capital loss Loss on sale of camper (purchased 4 years ago and used for family vacations) $ 9,000 (11,000) (2,000) 3-24 2009 Annual Edition/Test Bank What is Davids AGI for the current year? a. $76,000. b. $77,000. c. $78,000. d. $89,000. e. None of the above.ANS: C The loss from the sale of the camper is personal and, therefore, is not deductible. Netting the short-term capital loss of $11,000 against the long-term capital gain of $9,000 produces a net short-term capital loss of $2,000. Offsetting the capital loss against ordinary income yields AGI of $78,000 ($80,000 $2,000). PTS: 1 REF: Example 43 | Example 49 30. During 2008, Trevor has the following capital transactions: LTCG Long-term collectible gain STCG STCL $ 6,000 2,000 4,000 10,000 After the netting process, the following results: a. Long-term collectible gain of $2,000. b. LTCG of $6,000, Long-term collectible gain of $2,000, and a STCL of $6,000. c.LTCG of $6,000, Long-term collectible gain of $2,000, and a STCL carryover to 2009 of $3,000. d. LTCG of $2,000. e. None of the above. ANS: D First, the STCG and STCL are combined, resulting in a STCL of $6,000. Of this STCL, $2,000 is applied against the collectible gain of $2,000, and the $4,000 balance is applied against the LTCG of $6,000. The result is a LTCG of $2,000. PTS: 1 MATCHING Match the statements that relate to each other. Note: Choice L may be used more than once. a. Not available to 65-year old taxpayer who itemizes b. Exception for U. S. citizenship or r esidency test (for dependency exemption purposes) c. Largest basic standard deduction available to a dependent who has no earned income d.Not considered for dependency exemption purposes e. Qualifies for head of household filing status f. A child (age 15) who is a dependent and has only earned income. g. Not considered in applying support test (for dependency exemption purposes) h. Phaseout of personal and dependency exemptions i. Unmarried taxpayer who can use the same tax rates as married persons filing jointly j. Exception to the support test (for dependency exemption purposes) k. A child (age 16) who is a dependent and has net unearned income l. No correct match provided REF: Example 48 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.Abandoned spouse Stealth tax Additional standard deduction Scholarship funds Surviving spouse Marriage penalty Canada and Mexico Age of a qualifying relative $900 Kiddi e tax applies Kiddie tax does not apply Multiple support agreement 3-25 1. ANS: E PTS: 1 REF: p. 3-31 NOT: An abandoned spouse qualifies for head of household filing status. 2. ANS: H PTS: 1 REF: p. 3-20 NOT: An example of a stealth tax is the phaseout of exemptions. Tax in the News on p. 3-20 3. ANS: A PTS: 1 REF: p. 3-8 NOT: A taxpayer who itemizes (claims deductions from AGI) is not eligible for either the basic or additional standard deductions. 4. ANS: G PTS: 1 REF: p. 3-14 | p. -15 NOT: Scholarship funds are not considered when applying the support test. The taxable portion of scholarships are taken into account in applying the gross income test. 5. ANS: I PTS: 1 REF: p. 3-30 6. ANS: L PTS: 1 REF: p. 3-29 NOT: The traditional marriage penalty applied in some cases where married persons filed a joint return. 7. ANS: B PTS: 1 REF: p. 3-17 NOT: Citizenship or residency in these countries will suffice. 8. ANS: D PTS: 1 REF: p. 3-19 9. ANS: C PTS: 1 REF: p. 3-10 NOT: This amount co uld be greater if earned income exists. 10. ANS: K PTS: 1 REF: p. 3-25 11. ANS: F PTS: 1 REF: p. 3-23 NOT: The kiddie tax is inapplicable in situations where the child has no unearned income. 12. ANS: J PTS: 1 REF: p. -15 Match the statements that relate to each other. Note: Choice L may be used more than once. a. Available to a 70-year-old father claimed as a dependent by his son b. The highest income tax rate applicable to a taxpayer c. Equal to tax liability divided by taxable income d. Not eligible for the standard deduction e. No one qualified taxpayer meets the support test f. Taxpayers cousin does not qualify g. A dependent child (age 17) who has only unearned income h. Highest applicable rate is 35% i. Applicable rate could be as low as 0% j. Maximum rate is 28% k. Income from foreign sources not subject to tax l. No correct match provided 3-26 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 009 Annual Edition/Test Bank Multiple support agreement Kiddie tax not imposed Nonre sident alien Tax Rate Schedule Gain on collectibles (held more than one year) Marginal income tax rate Average income tax rate Additional standard deduction Relationship test (for dependency exemption purposes) Long-term capital gains Global system of taxation Territorial system of taxation 13. ANS: E PTS: 1 REF: p. 3-15 NOT: A qualified taxpayer is one who satisfies the more-than-10% contribution test and meets all of the other requirements for claiming a dependency exemption. 14. ANS: L PTS: 1 REF: p. 3-23 NOT: The kiddie tax can apply when the child has unearned income. 15. ANS: D PTS: 1 REF: p. 3-9 16. ANS: H PTS: 1 REF: p. 3-21 17. ANS: J PTS: 1 REF: p. 3-33 18. ANS: B PTS: 1 REF: p. 3-21 19. ANS: C PTS: 1 REF: p. 3-21 20.ANS: A PTS: 1 REF: Example 9 21. ANS: F PTS: 1 REF: p. 3-14 NOT: A cousin can qualify as a dependent under the member of the household test but not under the relationship test. 22. ANS: I PTS: 1 REF: Example 46 23. ANS: L PTS: 1 REF: p. 3-5 NOT: Global Tax Iss ues on p. 3-5 24. ANS: K PTS: 1 REF: p. 3-5 NOT: Global Tax Issues on p. 3-5 Regarding dependency exemptions, classify each statement in one of the four categories: a. Could be a qualifying child. b. Could be a qualifying relative. c. Could be either a qualifying child or a qualifying relative. d. Could be neither a qualifying child nor a qualifying relative. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36.A son lives with taxpayer and is self-supporting A daughter who does not live with taxpayer A granddaughter, who lives with taxpayer, is 24 years old, and a full-time student An uncle who lives with taxpayer A nephew who lives with taxpayer A niece who does not live with taxpayer A half brother who lives with taxpayer A cousin who does not live with taxpayer A step daughter who lives with taxpayer A daughter-in-law who does not live with taxpayer A family friend who is supported by and lives with taxpayer An ex-husband (divorce occurred two years ago) who lives with taxpayer Tax De termination; Personal and Dependency Exemptions An Overivew of Property Transactions 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: D B B B C B C D C B B B PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: 1 1 1 1 1 1 1 1 1 1 1 1 REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 p. 3-11 to 3-15 3-27 PROBLEM 1.Eva had the following transactions during 2008: Salary Interest income on bonds Issued by City of Baltimore Issued by Dell Corporation Alimony received Child support received City and state income taxes paid Bank loan obtained to pay credit card debt What is Evas AGI for 2008? ANS: $86,000. $80,000 (salary) + $3,000 (interest on Dell Corporation bonds) + $3,000 (alimony received). Interest on the City of Baltimore bonds and t he child support payments are exclusions from gross income. The bank loan has no tax effect, as Eva is obligated to repay the amount borrowed. City and state income taxes are deductions from AGI. PTS: 1 REF: Example 1 | Example 2 | Exhibit 3-1 to 3-3 $80,000 $2,000 3,000 5,000 3,000 9,000 4,000 10,000 3-28 2009 Annual Edition/Test Bank 2.Scott had the following transactions for 2008: Salary Alimony paid Recovery from car accident Personal injury damages Punitive damages Gift from parents Property sales Loss on sale of sailboat (used for pleasure and owned 4 years) Gain on sale of GMC stock (held for 8 months as an investment) What is Scotts AGI for 2008? ANS: $164,000. $90,000 (salary) $6,000 (alimony paid) + $75,000 (punitive damage award) + $5,000 (short-term capital gain on the sale of stock investment). The personal injury recovery and the gift from Scotts parents are exclusions from gross income. The loss from the sale of the sailboat is personal and, therefore, nondeductible. The short-term capital gain on the sale of the GMC stock is taxed in full as ordinary income. PTS: 1 REF: p. 3-6 | p. 3-33 | Exhibit 3-1 | Exhibit 3-2 | Example 43 $ 90,000 6,000 $50,000 75,000 125,000 24,000 ($ 3,000) 5,000 2,000 3.Kristen had the following transactions for 2008: Salary Moving expenses incurred to change jobs Inheritance received from deceased uncle Life insurance proceeds from policy on uncles life (Kristen was named the beneficiary) Cash prize from church raffle Payment of state income tax What is Kristens AGI for 2008? ANS: $76,000. $80,000 (salary) + $5,000 (raffle prize) $9,000 (moving expenses). The inheritance and life insurance proceeds are exclusions from gross income. The payment by Kristen of her state income tax is a deduction from AGI. Thus, it does not enter into the determination of AGI. PTS: 1 REF: p. 3-5 | Exhibits 3-1 to 3-3 $ 80,000 9,000 400,000 100,000 5,000 4,000 4. Warren, age 17, is claimed as a dependent by his father. In 2008, Warren has d ividend income of $1,500 and earns $400 from a part-time job. . b. What is Warrens taxable income for 2008? Suppose Warren earned $1,200 (not $400) from the part-time job. What is Warrens taxable income for 2008? Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 3-29 ANS: a. $1,000. Warrens standard deduction is the greater of $400 (earned income) + $300 or $900. Thus, $1,500 + $400 $900 = $1,000 taxable income. b. $1,200. Warrens standard deduction now becomes $1,500 ($1,200 + $300). Thus, $1,500 + $1,200 $1,500 = $1,200 taxable income. REF: Example 8 | Example 10 PTS: 1 5. Allison, age 22, is a full-time law student and is claimed by her parents as a dependent.During 2008, she received $1,300 interest income from a bank savings account and $5,300 from a parttime job. What is Allisons taxable income for 2008? ANS: $1,150. Allisons standard deduction is the greater of $5,300 (earned income) + $300 or $900. But the $5,600 is limited to $5,450 (the standard deduction allowed a single person). Thus, $1,300 + $5,300 $5,450 = $1,150 taxable income. PTS: 1 REF: Example 11 6. Heloise, age 74 and a widow, is claimed as a dependent by her daughter. For 2008, she had income as follows: $2,500 interest on municipal bonds; $3,200 Social Security benefits; $3,000 income from a part-time job; and $2,800 dividends on stock investments.What is Heloises taxable income for 2008? ANS: $1,150. $3,000 (income from job) + $2,800 (dividends) $3,300 (basic standard deduction is $3,000 + $300) $1,350 (additional standard deduction for age) = $1,150. The Social Security benefits of $3,200 and the interest on municipal bonds of $2,500 are not taxable. PTS: 1 REF: Table 3-1 | Example 9 7. Pablo is married to Elena, who lives with him. Both are U. S. citizens and residents of Kansas. Pablo furnishes all of the support of his parents, who are citizens of Nicaragua and residents of Mexico. He also furnishes all of the support of Elenas parents, who a re citizens and residents of Nicaragua. Elena has no gross income for the year.If Pablo files as a married person filing separately, how many personal and dependency exemptions can he claim on his return? ANS: Four. A personal exemption for Pablo and Elena and dependency exemptions for Pablos parents. Elena can be claimed because she has no income. Presumably she is not being claimed as a dependent by another. Although Pablos parents are neither U. S. citizens nor residents, they are residents of Mexico. Elenas parents meet neither the citizenship nor residency tests. PTS: 1 REF: p. 3-10 | p. 3-17 3-30 2009 Annual Edition/Test Bank 8. Homer (age 68) and his wife Jean (age 70) file a joint return. They furnish all of the support of Luther (Homers 90-year old father), who lives with them.For 2008, they received $6,000 of interest income on city of Chicago bonds and interest income on corporate bonds of $48,000. Compute Homer and Jeans taxable income for 2008. ANS: $24,500. Their gross income is $48,000 since the $6,000 interest on municipal bonds is an exclusion. They are entitled to a basic standard deduction of $10,900 and additional standard deductions of $1,050 each for being age 65 or older. They can claim a dependency exemption of $3,500 for Luther and two personal exemptions for themselves. Thus, $48,000 $10,900 $2,100 (2 $1,050) $10,500 (3 $3,500) = $24,500. PTS: 1 REF: p. 3-10 | p. 3-13 | Exhibit 3-1 | Table 3-1 | Table 3-2 9.Ellen, age 39 and single, furnishes more than 50% of the support of her parents, who do not live with her. Ellen practices as a self-employed interior decorator and has gross income in 2008 of $120,000. Her deductions are as follows: $30,000 business and $7,900 itemized. a. b. What is Ellens taxable income for 2008? Can Ellen qualify for head of household filing status? Explain. ANS: a. $71,500. $120,000 (gross income) – $30,000 (business deductions for AGI) = $90,000 (AGI) $8,000 (standard deduction) $3,500 (personal exempt ion) $7,000 (dependency exemptions for parents) = $71,500 taxable income. The answer presumes that the parents meet the other dependency exemption tests (e. g. , gross income) besides support. b.Ellen can qualify for head of household filing status if she furnishes more than half of the cost of maintaining her parents household. Also, at least one of Ellens parents must qualify as her dependent (see part a. above). REF: p. 3-5 | p. 3-10 | p. 3-13 | Table 3-1 | Example 42 PTS: 1 10. Ashley earns a salary of $35,000, has capital gains of $4,000, and interest income of $3,000 in 2008. Her husband died in 2007. Ashley has a dependent son, Tyrone, who is age 8. Her itemized deductions are $8,000. a. b. Calculate Ashleys taxable income for 2008. What is her filing status? $35,000 4,000 3,000 $42,000 (10,900) (7,000) $24,100 ANS: a. Salary Capital gains Interest AGI Less: Standard deduction Less: Personal exemption and dependency deduction ($3,500 2) Taxable income b.Ashley satisfies the r equirements for a surviving spouse. PTS: 1 REF: p. 3-10 | p. 3-30 | Table 3-1 | Figure 3-1 11. During the year, Keith has the following transactions: Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions Loss from the sale of a business computer Loss from the sale of a personal use auto Long-term loss from the sale of land held for investment Short-term gain from the sale of a stock investment How are these transactions handled for income tax purposes? 3-31 $3,500 1,500 5,000 1,000 ANS: $3,500 ordinary loss and $3,000 capital loss deduction. The $1,000 unused capital loss can be carried over to the next year.The $1,500 loss from the sale of a personal use auto is not allowed. PTS: 1 REF: Example 44 | Example 49 12. During 2008, Dena has the following gains and losses: LTCG LTCL STCG STCL a. b. How much is Denas tax liability if she is in the 15% tax bracket? If her tax bracket is 33% (not 15%)? $4,000 1,000 500 3,000 ANS: a. $0. After the initial netting process, there is a LTCG of $3,000, and a STCL of $2,500. The $2,500 of STCL is applied to the LTCG of $3,000. The final result is a net LTCG of $500 taxed at 0% for a tax liability of $0. b. $75. See part a. for the netting process. Now the $500 is taxed at 15% for a tax liability of $75. REF: Example 46 | Example 47 PTS: 1 13.During 2008, Marlo had the following capital gains and losses: Gain from the sale of coin collection (held three years) Gain from the sale of land held as an investment for six years Gain from the sale of stock held as an investment (held for 10 months) a. b. How much is Marlos tax liability if he is in the 15% tax bracket? If his tax bracket is 33% (not 15%)? $5,000 4,000 1,000 ANS: a. $1,100. Gain of $5,000 on the sale of the coin collection is taxed at 15% (lesser of 28% or 15%). The same is true for the short-term gain of $1,000. The gain of $4,000 on the sale of the land is taxed at 0%. Thus, (15% $6,000) + (0% $4,000) = $900. b. $2,330. (33% $1 ,000) + (28% $5,000) + (15% $4,000) = $2,330. PTS: 1 REF: p. 3-33 | Example 46 | Example 47 14.During 2008, Blaine has salary income of $100,000 and the following capital transactions: 3-32 2009 Annual Edition/Test Bank LTCG LTCL STCL $10,000 (14,000) (3,000) How are these transactions handled for income tax purposes in 2008 and, if applicable, in future years? ANS: First, netting the long-term transactions yields a net long-term capital loss of $4,000 [$10,000 (gain) $14,000 (loss)]. Second, apply the $3,000 short-term capital loss against ordinary income. Third, carry the unused $4,000 net long-term capital loss over to 2009. PTS: 1 ESSAY 1. Mr. Lee is a citizen and resident of Hong Kong, while Mr. Anderson is a citizen and resident of the U. S. In the taxation of income, Hong Kong uses a territorial approach, while the U. S. follows the global system. In terms of effect, explain what this means to Mr. Lee and Mr. Anderson. ANS: Mr.Lee is taxed only on the income he receives from Hong Kong, while Mr. Anderson is taxed on his global income. Under the U. S. approach, a citizen or resident is taxed on a worldwide basis. Since the U. S. system could lead to the same income being taxed twice, various relief provisions are necessitated (e. g. , foreign tax credit). PTS: 1 REF: Global Tax Issues on p. 3-5 REF: Example 49 2. In satisfying the support test and the gross income test for claiming a dependency exemption, a scholarship received by the person being claimed is handled the same way for each test. Do you agree or disagree with this statement? Why? ANS: Disagree. For purposes of the support test, all of the scholarship is disregarded.For purposes of the gross income test, only the taxable part is considered (i. e. , the nontaxable part is disregarded). PTS: 1 REF: p. 3-12 | p. 3-14 Tax Determination; Personal and Dependency Exemptions An Overivew of Property Transactions 3-33 3. In order to claim a dependency exemption for other than a qualifying child, a tax payer must meet the support test. Generally, this is done by furnishing more than 50% of a dependents support. What exceptions exist, if any, where the support furnished need not be more than 50%? ANS: One exception involves the multiple support agreement. Here, family members collectively furnish more than 50% of the support, but no one person does so.For those qualified individuals who contribute more than 10%, the group can designate which person may claim the dependency exemption. The second exception involves the divorced parents of children. The custodial parent is entitled to the dependency exemptions for the children. If this parent agrees not to claim the exemption(s), then the noncustodial parent may do so. PTS: 1 REF: p. 3-15 | p. 3-16 4. In applying the gross income test in the case of dependents that are married, could the application of community property laws have any effect? Explain. ANS: Most often, the application of community property laws will impact on the depen dency status of the spouse of a qualifying child.Suppose, for example, Roger maintains a household that includes his 18-year-old daughter, Alice, and her husband, Craig. Assume further that Alice earns $8,000 from a part-time job while Craig has no income. In a common law state, Craig meets the gross income test (i. e. , $0) while Alices gross income, as a qualifying child, is immaterial. In a community property state, however, Craig now violates the gross income test with $4,000 (50% $8,000) of income, while Alice remains immune. PTS: 1 REF: p. 3-36 5. In meeting the criteria of a qualifying child for dependency exemption purposes, when if ever, might the childs income become relevant? ANS: The amount of income earned by the qualifying child normally is of no consequence.If, however, such income is used to make the child self-supporting, then he or she can no longer be a qualifying child. Such child also would not be a qualifying relative due to the gross income and support tests. PTS: 1 REF: p. 3-12 3-34 2009 Annual

Commentary on Three Lunulae, Truro Museum

Three Lunulae, Truro Museum is a poem written by Penelope Shuttle and it is written with the perspective of a person who visits a museum and views the Lunulae. The visitor, upon first seeing the Lunulae begins to imagine their history. The gender of the viewer is unknown but it seems to be a woman, given the gentle and delicate way of writing, shown through the first stanza â€Å"gold so thin, only an old woman would notice its weight†. The poem consists of 14 stanzas but varies in length probably contributing to a shift in mood and tone of the poem.The poem begins with the description of the Lunulae as soon as the visitor walks in where they comment on the gold on the Lunulae and that it was so thin only an old woman would notice it, creating imagery in our mind about how fine and delicate the Lunulae is and therefore, adding to the speakers intrigue towards the object. This description continues in the second stanza where she compares the gold to crescent moons that came out of the â€Å"sunken district of the dark†. This comparison probably tells us how the Lunulae were found after the â€Å"archaeologists† dug it out of the ground.This gets the poet to start describing the ornaments and how the women of the Bronze Age â€Å"threw no barbaric shadows† which seems like a connection with the Bronze age and how it may have been a time of violence. The reference to â€Å"freeze† in stanza five and â€Å"winter† links to a seasonal recurrence where spring probably represents the young people and that winter symbolizes doom, old age and eventually: death. Contrasting to this description, the poet uses a lot of delicate and gentle sounds such as moon, women and mood to probably ease out the process, almost as if it was a cyclic movement.When the speaker describes these ornaments, it’s as though time stands still while she is entranced by the ornaments but the mention of the â€Å"slight quick tap of a clock† ( stanza 6), the reader is reminded that time still exists and that it waits for no one. This idea is supported by the previous mentions of the moon and the women of the Bronze Age where the speaker describes the event almost as if she were back in time with them and that it stood still when she spoke about it.In stanza 5, the reference to insects’ legs is quite an odd simile to use but it conveys the fact that the clocks hand, is like and insects’ leg, quiet and unseen, almost as if it goes on unspoken till we meet our end, or when it is winter. The next few lines only add to the intrigue of the speaker towards the object where she tries to see what others could not see. She wants to go beyond the three women’s’ faces and actually understand the story behind the Lunulae. The reference to the word â€Å"sickle shapes† along with â€Å"insects’ legs† and â€Å"thin gold remains of autumn† show the delicate and fragile imagery with a link to nature.In stanza 9, there is a possible connection to stanza 3 and in this stanza, the women seem to be appearing in front of the speaker, almost in a ghost like form with â€Å"a face like a frost fern†. The description here is very dark and aggressive. The â€Å"Light twists in a violent retching† and this shows the manner in which the women are manifesting themselves. In contrast to what was said earlier in stanza three, it seems now that these women did have a violent past. The â€Å"dusty snakes† which are used to describe the women implies that they are very old and possess a sly character.Towards the end, the readers understand that the custodian is about to close the museum and this intriguing story behind the Lunulae is about to come to an end. The speaker must leave as they are closing. The speakers friend waits there to buy him a postcard and they both step outside where there are autumn leaves. This reference to the autumn leaves touches u p upon the previous mentions of seasons, time and how life is almost like a cyclic movement: pre planned and inevitable.The poet tries to convey to us that every single thing has its own story, its own identity and that every thing we do in life connects us to events in the past and the future. This poem conveys the importance of time and how it is destructive in nature where at one point, everything seems fine but after a while, things tend to fall apart and ugly truths begin to reveal themselves. It teaches us that the mind is very fragile and gullible but explains to us that what is shown on the surface is not always the truth.

Juvenile Justice: Should Minors be charged as Adults? Essay

A movement has taken hold of our nation to change the juvenile justice system, and erase any distinction between young offenders and adult criminals. Almost all fifty states have changed their juvenile justice laws, allowing more youths to be tried as adults and scrapping long-time efforts to help rehabilitate delinquent kids and prevent future crimes. It seems to be plain and simple, a minor in this country is defined as a person under the age of eighteen. How then can we single out certain minors and call them adults? Were they considered adults before they carried out an act of violence? No. How then, did a violent act cause them to cross over a line that is defined by age? The current debate over juvenile crime is being dominated by two voices: elected officials proposing quick-fix solutions, and a media more intent on reporting violent crimes than successful prevention efforts. Minors should not be tried as adults in our society today. This is obvious through looking at proposit ions by our government such as Proposition 21, statistics on juvenile crime and also from specific cases where minors where sentenced in adult courts. Politicians feel that best and easiest solution is to simply lock up youth offenders for long periods of time, and ignore rehabilitation. Most studies demonstrate that putting young offenders in adult prisons leads to more crime, higher prison costs, and increased violence (Cooper, 1997). Yet, we are spending more and more on corrections, and less on prevention efforts. Some states spend more on corrections than they do on higher education. The cost of keeping juveniles in prison as compared to putting them into rehabilitation programs is astronomically higher. The Average cost of incarcerating a juvenile for one year is between $35,000 to $64,000. However, the average cost of an intervention program is $4,300 per child a year (Crary, 2000). Also the effectiveness of prisons to prevent juveniles from becoming repeat offenders is low. Kids, who have already spent time in adult prisons, are far more likely to commit more serious crimes when they are released. Crime prevention programs work and are cost-effective. They have been shown to reduce crime substantially when compared to imprisonment after crimes have been committed. There are many crime prevention programs  around the country that have been very successful in helping to reduce juvenile crime. Many states use early intervention programs that are designed to help parents of troubled kids in raising their children. These programs offer strategies and tactics for helping supervise and discipline troubled children. This is done because it is believed that one of the causes of delinquency is that parents of kids with delinquent tendencies simply don’t know what to do with them. These programs as well as other similar ones have been shown to have quite an influence on crime prevention. Media reports on juvenile crime are greatly exaggerated. While some headlines suggested that a â€Å"ticking time bomb† of so-called â€Å"super predator children† is waiting to explode, the studies show that this is simply not true. Crime level indicators show that the male â€Å"at risk† population will rise over the next decade, but the levels are far from the explosive level that the media would like to suggest. In fact, the levels are lower than those reached in the late 1970’s, when the â€Å"at risk† population last peaked (Crary, 2000). The public also holds greatly distorted views about the prevalence and severity of juvenile crime. Contrary to public perception, the percentage of violent crimes committed by juveniles is low. Young people commit only 13% of violent crimes (Reeves, 2001). Also, most juvenile arrests have nothing to do with violence. Most kids only go through the juvenile justice system once. Most youths will simply out grow delinquent behavior once they mature. The true â€Å"juvenile predator† is actually a rare breed. But the media thrives on sensationalism, so they make it appear that crime is everywhere in order to sell more newspapers, or have people watch their broadcast. History is known to repeat itself. This saying is no lie when you look at the topic of juvenile justice. Until Chicago established the first juvenile court in the U.S. in 1899, children 14 and older were considered to be as responsible as adults for their actions. Minors as young as 13 were occasionally sentenced to death, and some were executed (Palmer, 1999). Discomfort with the death penalty and with imprisoning children with adults led to the creation of a separate court acting as the parent or guardian of young offenders. Solutions include therapy, education, and community service, as well as incarceration and restitution of victims. â€Å"The  (juvenile) court was established as an attempt to say kids are not just small adults, but people of tender years with a future ahead of them,† said Judge Martha Grace, chief justice of the Massachusetts Juvenile Court. â€Å"I am disturbed by the tendency now to lock kids up and throw away the key† (Palmer, 1999). So if we already felt that children should not be able to be tried as adults and we created a juvenile system to correct this why turn our backs on it and go back to our cruel ways of more than 100 years ago? The answer is simple, we shouldn’t. We need to better our juvenile system, a system that has been working fine since 1899. The government has taken the initiative to come up with a plan of their own called Proposition21, which would try offenders as adults rather than juvenile. Proposition 21 would require juvenile offenders 14 years or older to be charged as adults. It would eliminate informal probation, and further limit confidentiality for juveniles who are charged with or convicted of specified felonies. Proposition 21 would require that certain juvenile crime offenders be held in a local or state correctional facilities rather than in juvenile facilities. It would designate certain crimes as violent and serious, thereby making offenders subject to longer sentences. Proposition 21 was proposed so that fourteen year olds and older would be tried as adults for serious crimes. If proposition 21 passes it is going to send thousands of fourteen to sixteen year olds to state prison. Right now the cost of vandalism, in order to be considered a felony, is fifty thousand dollars, and if proposition 21 passes the cost is going to be reduced to four hundred dollars. Proposition 21 does nothing to protect our communities, and all it does is incarcerate children. Rather than decrease, if proposition 21 passes, crime rates are going to increase. If passed, it will incarcerate many juveniles with top-notch criminals. These children will not be given the opportunity for rehabilitation like in the juvenile system. Without treatment and education, the only thing a juvenile can learn while incarcerated with adult criminals, is how to become a better criminal. These teenagers will not be given the opportunity of rehabilitation and will come out of jail only tougher. Our nation also has a tragic record of sexual and physical assaults on juveniles incarcerated with adult criminals. Adult criminals will then take advantage of these teenagers. A Chicago Sun Times  writer states that â€Å"Prop. 21 would shift the power to decide which juveniles get tried as adults from judges to prosecutors. In Florida, where a similar law was passed, prosecutors sent almost as many young offenders to the state’s adult courts as judges did in the whole of the rest of the country — and 71 percent of them were for nonviolent crimes†( Huffington, 2000). Proposition 21 is a horrible idea and is a step in the wrong direction that only further hurts our youth. Many people feel that juvenile crime is getting out of control. If you look at the statistics, you can see that this is not true. Youth advocates say the â€Å"public does not realize that the vast majority of juvenile crimes are not violent, and that young offenders who are treated as adults become a bigger threat to society because they are deprived of efforts to rehabilitate them, which are rarer in the adult system.† The arrest rate for violent juvenile crime has fallen for four years in a row and 23 percent since 1994; according to the Juvenile Justice Department report released this month. The arrest rate for murders by juveniles has dropped 40 percent in the same period. Since 1992 in Massachusetts, the juvenile crime rate has declined, yet the number of minors committed to the Division of Youth Services has doubled. Minors are also receiving sentences twice as long as they were before the state passed the Youthful Offender Law in 1996, DYS said (Palmer, 1999). If this rate is declining is there a need to make harsher laws for minors? A study funded by the MacArthur Foundation and released in December by Frank Zimring, a law professor at the University of California at Berkeley, also found that juvenile crime rates had not increased over time. â€Å"Legislative activity around the nation has been motivated by the sense of a national youth violence emergency,† he said. But, Zimring added, those changes were driven by flawed analysis of statistics (Palmer, 1999). When looking at statistics you must look for fallacies in the reports. Also, on September 29th, the Washington Post Newspapers states, â€Å"60% of children who are referred to a juvenile court learn their lesson the first time.† They never cause problems again. The public rarely hears the good news in the juvenile court syst ems. This alone tells us, they do deserve a second chance. Lionel Tate, 14, is serving a life sentence for the first-degree murder of 6-year-old Tiffany Eunick in July 1999 when he was 12. He is appealing. The governor rejected his request for clemency last year. The minor, who never testified at his trial, talks with state Department of Juvenile Justice authorities. â€Å"I really don’t have anything to say to the judge other than I didn’t want to be found guilty,† Tate told his interviewer following his conviction. â€Å"I wish the day never happened. I didn’t mean to hurt Tiffany, and I feel real sad and sorry for her and (her mother)? If I could repeat that day, I wouldn’t play wrestle with Tiffany† (Reeves, 2001). By looking at his statement you can tell that Tate was just repeating what he saw on T.V. He did not shoot, stab or kill the little girl with any objects of any kind. This shows that it was not his intent on killing her. Regardless of what happened a 14 year old does not deserve to be locked up the rest of his life. What does it say about our society when we lock up our youth? To me it says that we don’t care about their futures and would rather just get them out of sight so that they are out of mind. We cannot give up on our youth. In conclusion, the topic of juvenile justice and sentencing minors with adult penalties is a heated debate. Many elected officials go for the quick-fix solutions. The media will always show the worst of juvenile crime, and not any positive which makes people feel that there is a huge problem. Minors should not be tried as adults in our society today. Bad quick fixes such as Proposition 21 does not help, it sends us as a society a step back. Juvenile crime does exist and youths do commit violent acts. However, it is not on the scale that many people would like the public to believe. The statistics don’t lie, juvenile crime is falling. The solution is to this problem is not a simple one and cannot be solved by simply putting kids in adult prisons or propositions. More effective solutions should be explored and put to use. We need to have faith in out juvenile system. There is a growing willingness to turn a cold shoulder to life’s losers. Even when those losers happen to be kids. Rehabilitation seems to be out and retribution is in. The law created the defining line between minors and adults, but now everyone wants to ignore the definition because the crime got more ugly. The minor is still a minor, no matter how ugly the act.

Critically evaluate the extent to which the change process in Essay

Critically evaluate the extent to which the change process in organisations is influenced by the attitudes and beliefs of individual managers more than the dynamics within the group - Essay Example The success of ant change program determines the success of the management as change has become one of the major challenges facing human resource managers and employees in equal measures. Changes in an organization are known to affect the people in such organizations positively or negatively depending on the position of an individual in the leadership hierarchy2. Resistance to change has become part of any organization and this explains the multiple academic researchers conducted to evaluate the impacts of resistance on the success of an organization. For an organization to successfully change from its traditional approach to a new one based on market needs, a number of factors must be visible within the organization3. Their attitude and belief in the change being implemented impacts to a lager extent on the success on the plan as opposed to the dynamism of the organization and its structural willingness to adapt to new methods of conducting business. In this paper, the level by which the attitude and belief of managers and top leaders of an organization influence the change program will be evaluated relative to the impact of the dynamism of the organization to the same. Attitude is defined as the feeling and perception that an individual develops towards a particular event or process which affects their ability to adopt a given program or idea. The attitude of managers on change impact on the change program in a similar or in a greater manner on the change process in an organization and such an attitude is easily passed to the employees that these managers are tasked to supervise. Within the psychological discourse, attitude has been shown to influence the tendency of an individual to act, feel, reason and even respond to a particular stimuli in life4. Attitude thus affects the cognition of an individual towards changes in an

Management Portfolio Research Paper Example | Topics and Well Written Essays - 4000 words - 2

Role of Portfolio in Civil Engineering Management - Research Paper Example Some of the critical determinants essential for full-fledged functionality of Civil Engineering the cross-functional processes adding value to the civil engineering system through effective concept and value designs. Some of the important areas of focus to enumerate the aspects of civil engineering are Each of the categories plays a pivotal role to understand the aspects of civil engineering and the relationship between civil engineering and the respective categories and functions. Finally, there is a need to devise a document control process to ensure the accuracy of the information and also research on the relevance of the same in various aspects. The entire portfolio is supported with effective case studies, schematic diagrams and data tables for better understanding and application. It is important to understand the regulatory requirements in civil engineering for better functionality of the stream. These regulatory requirements are Health and Safety, Environmental and other specific regulatory like Buildings, Railways, and Highways. In order to correlate the Health, Safety and Environmental aspect of management with the civil engineering management, there are many postulated theories explaining the need for the same. The risk involved in any health and safety is the accidents. An accident is an unplanned, uncontrolled event that resulted in personal injury, property damage and/or some other loss, or could have resulted in personal injury, property damage and/or some other loss in slightly different circumstances Methodology – A questionnaire survey was conducted on construction projects to establish the extent to which clients are involved in construction H&S.  

One flew over the cuckoos nest Essay Example | Topics and Well Written Essays - 750 words

One flew over the cuckoos nest - Essay Example male lead, Nurse Mildred Ratched, who incorporates a strategy of humiliation and unpleasant treatment to exercise control over her charges in the ward. Thus, the main theme of the movie can be perceived as the protagonist’s resistance to conformity and his rebellion against the established norms to which he does not subscribe. The movie, due to its deft treatment of a poignant theme, never ceases to amaze its audience by delving into to the undercurrents of sexuality, compassion and emotional insecurity that force the protagonist to rebel against societal norms. While on the surface level it portrays the inmates in a mental institution, underneath it depicts the male vehemence and gusto and how society outside the walls that confine them has in one way or other castrated and broken down these men. Most of the male patients have been damaged by relationships with overpowering women. Mc Murphy does not have a disability but has an impetuous response towards the patients in the ward. He treats them like human beings, unlike Ratched, despite his rebellious attitude to authority. His character reminds the other inmates that there is a life beyond the four walls of the asylum and they could have one too. Mc Murphy’s mere presence inspires hope among the inmates, who until then were doomed to give into th e society that considered them stupid and crazy. Thus, through illustrating the compassion in the protagonist, the movie accentuates his rebellious attitude, which stems from the wrong way in which he has been treated. As the plot develops, Mc Murphy’s resistance to conformity intensifies, which reflects in his bonding with the other inmates. This, in a way, can be construed as his defiance to the people or the authority that condemned them to such a life. He, thus, encourages them to muster a sense of hope and expectation in their lives, when Ratched tries to suppress them by explicitly expressing her disgust at people like them. The nurse, who represents

Monique and the Mango Rains Essay Example | Topics and Well Written Essays - 750 words

Monique and the Mango Rains - Essay Example The town lacks running water in taps, trained doctors, have inadequate food, water and most people suffer from malaria, intestinal parasites and HIV aids. The book contains different instances of in equality, which occurs in marriage, family, economy, labor division and sexuality among others (Holloway & Bidwell, 2007). Gender inequality and social stratification from an anthropological perspective This refers to the classification method that groups sexes differently and it views women to be unequal in power, resources that they own, prestige and presumed worth. In this book, the author realizes dissimilar issues of gender inequality during her stay in Mali. There is gendered inequality in women whereby they face discernments in different areas thus lacking good opportunities to improve their status. Women face gender inequalities in health facilities while complying with their traditional role of child bearing hence seeking for assistance from traditional birth entourages. This bir th giving method endangered Malian Manianka women as they stayed in labor pain for a very long period and the midwife had no painkillers to relieve the pain. Based on diminishing health facilities that assist women while giving birth, most of them suffered from genital ablation while still in their childhood stages. The inequality that existed among the Malian Manianka women caused too many losses. This is because one in every twelve women died while giving birth and one in every fifteen children died at birth. The town also had rape instances, whereby Monique tells that her first sex experience was through rape (Holloway & Bidwell, 2007). The book illustrates a high rate of inequality in the marriages among people of Malian Manianka, because women do not get married willingly and they lack satisfaction. According to the author, women faced many problems generating from their communities. Women of this town had no permission to decide when to get married; instead, their parents forc ed them at a very young age. After getting married, women gave birth to many children, and they were banned from using contraceptives, which made Mali a very populated country in Africa. Marriages had gender violence mainly to those women that failed to accomplish their traditional role of child bearing. In this village, immediately after a woman gives birth, she only stays for few hours and resumes to her normal roles. This shows how men in Malian Manianka are not concerned with their marriages by not carrying on the women’s duties after birth to allow them recover. There is inequality among families in this town because no one has permission to choose his/her preferred family; instead, the community chooses for them. Monique the midwife is an example of such family whereby her marriage resulted from the cultural practice of choosing husbands. This resulted to infidelity in her marriage as Monique had an affair with Pascal the man that she loved in order to get satisfaction. Franois husband to Monique failed to meet his parental responsibilities by not providing his family with basic needs (Holloway & Bidwell, 2007). Instances of gender in equality in this book are also common to families. This is because most women in the book are unhappy in their marriages, but they cannot divorce their

Importance of Radioisotopes and Isotopes Research Paper - 1

Importance of Radioisotopes and Isotopes - Research Paper Example Some of the isotopes undergo radioactive decay over time, therefore, known as radioactive isotopes. On the other hand, those isotopes not been observed to undergo any form of decay are known as stable isotopes. In general, isotopes have similar chemical properties but different physical properties. For example, hydrogen has three different isotopes (fig 1); 1H, 2H, and 3H. Hydrogen 1 or protium is the most abundant isotope. As they all have similar chemical properties they can form similar bonds. H2O and D2O are some examples but they have different physical properties. H2O has melting point of 0.0oC and boiling point of 100.0oC but D2O melts at 3.82oC and boils at 101.4oC. (Stoker 55). Isotopes have various applications in different sectors. In the medical field, radioactive and stable isotopes are used in medical procedures for the purpose of diagnosis and therapeutic use. Isotopes have a significant application in biomedical research field as well as research in physics, biology, chemistry, geosciences and other branches of science and technology. Isotopes can be used in various ways in the various fields discussed above. They are generally helpful because of their emission properties. Isotopes with short half life decay and emit various radiations such as beta emissions which can be detected by various means. Therefore, they can be used as ‘tracers’. For example, scientists can measure the uptake of nutrients in a plant by using a radioactive isotope of phosphorous. 32P containing compound can be introduced in the soil which is taken up by the plant. It has a short half life of about 2 weeks and the rate of uptake can be found my measuring the time taken for it to appear in the leaves. It can be traced in the leaves by detecting the beta emissions. (Kotz, Treichel and Townsend 1086). Many other applications of radioactive isotopes apply similar technique. There are many applications of isotopes in the field of medicine. Iodine is an essential

Public speaking Assignment Example | Topics and Well Written Essays - 250 words - 2

Public speaking - Assignment Example She pointed that the government could do something of the kind to accept all the oppressed people. The auditorium applauded when she finished but they didn’t listen to her answer and applauded only after the last words ‘Statue of Liberty’. The feedback of the audience wasn’t called by the core of her speech, but by the fact that need to somehow react. The negative feedback of the opponent of the main character was based on the personal hostility and shouldn’t be taken as a constructive critic. Speaking about the main character’s response to the opponent’s aggression, we should mention that as an argument pro her words that it was the 50th birthday. It wasn’t, actually, an argument or even an important fact. So, being in the same situation I would feel quite nervous and annoyed and react another way, for example - try to provide another argument. The girls started arguing on the field of their mutual dislike and provided the far-f etched arguments. So we can conclude that the feedback of the audience and the opponent wasn’t objective at

The Story of the Stuff by Annie Leonard Essay Example for Free

The Story of the Stuff by Annie Leonard Essay The Story of the Stuff which is made by Annie Leonard was very interesting and enlightening. It made me realize that no matter how small the stuffs we use in our everyday life, it should not be taken for granted because the economic system is in crisis and we cant continue to run on a linear system since we live on a planet of limited resources. People become obsessed with consumerism, especially when it comes to new technologies. Things that we buy and then discard go through different phases: extraction, production, distribution, consumption and disposal. Corporations have become bigger than our government and the first limit to the system is exploitation of our natural resources. We are consuming products to the point where 1/3 of our natural resources are already used up with 30% of our waste being shipped to other areas of the world. Due to these instances, almost all of our forest have already been cut down, and yet this corporations who still wants to cut them have no â€Å"corporate environmental responsibility†, what they want is always earning more profit. They should think that if all the resources in earth runs out, even money can’t revert the damage they have done to these non-renewable resources. Also they can’t already buy these resources from the over-exploited third world countries. Yet the government hasn’t done enough actions to address these problems. I find it appalling and irresponsible of our government. Maybe just maybe they are doing actions or made rules and regulations to minimize these occurrences but still it wouldn’t be enough since corporations can lend money to those corrupt officials whose minds are obsessed with money then poof, the corporations will continue its operations. It is not merely the fault of the corporations or the government, each indiv iduals also contributed on consuming the limited resources the earth have. In today’s time, consumers has become the new evil of the society, consumption has turned from necessity to excessiveness. Through planned and perceived obsolescence we have turned against everyone including ourselves. Consumerism led to tremendous increase in the variety of products. Each product life cycle from raw material extraction to its consumption has an  effect on the ecosystem as a whole. For example, due to toxics like dioxins and furans, there is change in the atmosphere thus affecting both flora and fauna of our planet. To cater to this growing hunger, production house does not maintain any standards in the degradation of human, social and economic capital. Rather than playing the role as a regulator, the governments are playing the role as a promoter. But there is a way forward, we and planet are complimentary not supplementary. We should start focusing on closed production loop, renewable energy, zero waste. Sustainable development is the way forward for sustainable life. We cant just start fresh with a whole new system, however I believe we can take the current system and revamp it in a way that we become more responsible as consumers and citizens. We need to take back our government and unite to see the big picture. By unity we create equity, boost our local living economies and promote sustainability!

Effects of Nutribullet Processing on Glycemic Response

Effects of Nutribullet Processing on Glycemic Response The major results from the present study show that processing a variety of fruits with the Nutribullet has had beneficial effects on the postprandial glycemic response in healthy subjects. We observed that after the ingestion of the Nutribullet mixed fruit treatment, on average the subjects maximum glycemic increment was only 0.4mmol/L, in comparison to the maximum increment of 1.3mmol/L after the ingestion of whole mixed fruit. In contrast, processing mango with the Nutribullet showed to have no added beneficial effects on postprandial glycemic response in comparison to the ingestion of whole mango. After the ingestion of the Nutribullet processed mango the maximum glycemic increment was 0.9mmol/L, compared to the maximum increment of 0.8mmol/L in the whole mango group. Although the processing of mango did not have the same effects seen for the mixed fruit group, these results are still significant because they demonstrate that the domestic processing mango alone and processing a variety of fruits together does not increase their GI as previously thought. In fact, the results of the present study demonstrate that Nutribullet processing a combination of fruits favorably flattens the postprandial glycemic response which is in conflict with the current recommendations for diabetics to avoid fruit smoothies. As mentioned earlier, these recommendations are formed on the assumption that the majority of fibre in fruit juice and smoothies has either been removed or broken down. Although there is substantial evidence supporting the link between the consumption of fruit juice and the increased risk of T2DM (Muraki et al, 2013; Bolton et al, 1981; Haber et al, 1977), there appears to be a sparse amount of research investigating the effects of domestically blending fruits on glucose metabolism. Although, there is one study to our knowledge that has investigated the impact of whole fruit, fibre-disrupted purà ©e and fruit juice (Haber et al, 1977). The authors reported that plasma glucose rose to similar levels after the consumption all three meals. However, they suggested the removal of fibre from food or the physical disruption of fibre, could lead to slightly higher postprandial glycemic responses. Indeed the cellular structure of fruit is important and potentially explains the results of the present study because unlike fruit juice, the fibre was not removed during the Nutribullet processing. Interestingly, evidence from a recent investigation showed that commercial smoothies which have gone through a homogenization process still contained high concentrations of intact fruit cells (Chu et al, 2017). However, we must appreciate that the process of homogenization is completely different to domestic food processing and therefore, it could be argued that perhaps domestic processing would elicit different outcomes with regards to fibre content. Although a recent study reported that the concentrations of insoluble and soluble fibre were the same in both domestically blended mango fruit and high hydrostatic pressurized mango (Elizondo-Montemayor et al, 2015). Therefore, this evidence signifies that the processing of fruits, with a domestic blender does not completely breakdown the fibre. This may go on to explain why the present study did not observe a sharp peak in blood glu cose following the consumption of Nutribullet treatments, in comparison to studies which have observed postprandial hyperglycemia due to the consumption of fruit juice where the fibre is absent (Bolton et al, 1981;). Although the results of the present study may be in part attributable to the presence of dietary fibre within the treatments, several other parameters have also been identified to affect the absorption of glucose. These parameters include the viscosity of the fruit and other properties of fibre, such as solubility and swelling capacity. Effects of fibre on carbohydrate absorption Fibre can be classified as either soluble or insoluble, characterized by how they react in aqueous solutions.   Insoluble fibre includes lignin, cellulose and many hemicelluloses. These fibres make up the cellular-wall structure of fruits and vegetables. When consumed together with foods, these fibres behave as bulking agents and also increase intestinal transit time. Water-soluble fibre comprises hemicelluloses, and many polysaccharides, such as pectin. These fibres are characterized by their high water-holding capacity, also several of them are highly viscous in solution (Wursch et al, 1997). Pectins are constituents of the primary cell wall and intercellular layer of plant cells. They are insoluble in unripe fruit, yet become more water-soluble as the fruit ripens. Lastly, they have large water-holding capacity and form gels in aqueous solutions. Within the scientific community, it has been acknowledged that the presence of certain dietary fibres influences the digestion and absorption of CHO within the small intestine, resulting in a reduced and levelled off glycemic response. Importantly, this effect has been shown in both healthy and T2DM subjects (Jenkins et al, 2002; Anderson et al, 1994). It has widely been reported that viscous soluble fibre are most effective in improving glycemic control by reducing the postprandial glycemic response, in comparison to insoluble fibres (Jenkins et al, 1978; Elizondo-Montemayor et al, 2015). In contrast, it has also been established that when the viscosity of fibre in several products has been reduced through varied processing techniques then the reduction in blood glucose peak is attenuated (Wursch et al, 1997), signifying that both the solubility and viscosity of the fibre is directly linked to the attenuation of blood glucose. Due to the growing pool of scientific evidence linking t he consumption soluble fibre with a flattened glycemic response, several theories have been developed to explain what mechanisms in the small intestine may be causing the modulation of the glycemic response. One mechanism suggested is a delayed rate of gastric emptying. It is thought that due to the water-holding capacity of soluble fibre, a resulting delayed gastric emptying and transit time through the small intestine occurs, thereby resulting in a reduced rate of CHO absorption (Benini et al, 1995; Cherbut et al, 1995; Ou et al, 2001). Another proposed mechanism is that the ingestion of soluble fibre increases the viscosity in the small intestine resulting in a reduced mixing effect of peristalsis, thus reducing the digestion of CHO by pancreatic alpha-amylase and in turn causing a delayed diffusion of CHO to the intestinal mucosa (Cherbut et al, 1994; Ou et al, 2001). Lastly, it has also been proposed that the capacity of dietary fibre to bind to glucose may reduce the concentration of available glucose in the small intestine, resulting in reduced digestion and absorption of glucose (Ou et al, 2001). Considering all this, a theory has been developed to further explain the results observed in the present study for the Nutribullet mixed fruit treatment. The theory is that the banana used within the mixed fruit treatment is potentially the main fruit influencing the postprandial glycemic responses. As previously mentioned, the ripeness of fruits is a major influencing factor on the concentrations of soluble and insoluble fibre. Recall from the methodology in the present study that all of the fruit was freshly purchased within days of the appropriate trial. Therefore, it is highly probable that the banana included in the mixed fruit trial was unripe as they were refrigerated for no more than 2 days. This theory is based on the evidence that unripe or less-ripe bananas contain higher concentrations of resistant starch, in comparison to over-ripe bananas. Resistant starch has been found to be more slowly digested in humans by alpha-amylase thereby causing a flattened glycemic response due to the reduced availability of glucose (Wolever et al, 1990; Hermansen et al, 1992). From all of this information we have established that dietary fibre is still present in fruits which have been domestically blended, also we have discussed some of the mechanisms potentially causing the effects fibre has on glycemic response. The next question at hand is whether Nutribullet processing effects the sugar content of fruit. It has been proposed that foods containing Effects of Nutribullet processing on the composition of mango and mixed fruit carbohydrates The content of simple sugars was lower per portion of mango (11.8g) and mixed fruits (15.7g) after Nutribullet processing, compared to whole mango (16.5g) and whole mixed fruits (24.9) (Table 3).   Recall for the methodology in the present study that we calculated specific servings of each fruit to give 25g of sugar per serving among the whole fruit and Nutribullet treatments. Due to this it was hypothesized that HPLC analysis would reveal that the sugar content of the whole fruit treatments would be similar, if not lower, compared to the sugar content of the Nutribullet treatments. Previous work has suggested that processing fruits, through homogenization, can cause losses in cell integrity, thus resulting in the release of simple sugars from compartmentalized structures and non-covalent links (Elizondo-Montemayor et al, 2015). On the contrary, this was not observed in the present study. When comparing the total sugar content of both mango treatments to the observed postprandial glycemic responses (Figure 1), there is a discrepancy where the extrapolated IAUC for both mango treatments do not correlate with the sugar content revealed through HPLC analysis. For example, from figure 1 we can see that both mango treatments had a very similar postprandial glycemic response, yet HPLC analysis would suggest that the whole mango treatment should have had a higher glycemic response. Although this was not the case, signifying that errors in the HPLC methodology are potentially causing these results. For example, upon completion of the HPLC testing, it was regrettably found that several tubes containing various mango treatments still had remaining supernatant within them. This of course would explain the varied sugar content between the mango treatments and reflects that the investigators had varied pipetting skills. Regarding the mixed fruit HPLC results, the total sugar content of both mixed fruit treatments seem to correlate well with the postprandial glycemic responses (Figure 1). In addition, the mixed fruit Nutribullet contained half the sugar content compared to the whole fruit treatment. As discussed earlier, the potential mechanisms associated soluble fibre may explain why the Nutribullet treatment revealed to have a lower sugar content. For example, the fibre may have bound to the glucose molecules reducing the available glucose in the small intestine, thus resulting in the attenuation of postprandial glycemic response. An in vitro digestion model, designed to mimic the in vivo situation, was able to determine the glucose content within supernatant by mixing 1g of resistant starch or soluble fibre with 100ml of glucose solution, then incubating the mixture in a water bath (37 °C) for 6 hours, followed by centrifuging (Ou et al, 2001). The authors reported that the solutions which had added fibre contained less glucose within the supernatant, signifying that the fibre had binding potential to glucose. On the other hand, it is important to consider that the HPLC results for the mixed fruit treatments may also be subject to errors within the methodology. For example, looking at Table 4, there is high relative deviation amongst the whole fruit samples, yet not amongst the Nutribullet samples. This indicates that there was low precision during the measurement of whole fruit samples. Again, perhaps due to the low level of skill among the investigators with regards to the pipetting, syringing and filtration of supernatant. Considering all of these limitations, the results obtained from HPLC analysis provide little relevance and impact to the present study. Practical Implications of the results The fact that both the whole fruit and Nutribullet treatments elicited a low GI and specifically that the mixed fruit Nutribullet treatment showed a significantly lower GI (figure 2) has important clinical implications for both healthy and T2DM subjects. A relatively recent Cochrane review which was based on 11 randomized controlled trials, reported that glycemic control in T2DM subjects was improved significantly following a low GI diet, compared to those on a high GI diet (Thomas et al, 2009). In addition, a low GI diet elicited significant reductions in glycated hemoglobin A1c (0.5%) which are comparable to reductions usually found through medications for recently diagnosed T2DM patients (Holman, 1995; Holman, 1999). Furthermore, improvements in A1c of this size have been linked with the reduced risk of diabetes-related microvascular complications, such as retinopathy (Stratton, 2000). With regards to healthy subjects, diets containing low GI foods have been associated with reduct ions in body weight, improvements in lipid profile and a decreased risk of T2DM and cardiovascular disease (Jenkins et al, 2011; Barclay et al, 2008; Van Dam et al, 2000). Overall, as the Nutribullet does not appear increase their GI of commonly eaten fruits, both healthy and T2DM subjects could potentially benefit from this method of food preparation by improving glycemic control. Although as the results from the present study are novel, more research is needed before any conclusions can be drawn with regards to the safety and effectiveness of recommending that diabetics can consume fruit smoothies. Study limitations There are some limitations within the methodology of the present study that should be mentioned. Firstly, the present study employed only one reference trial. Recommendations are that the reference food (glucose) trial should be repeated at least once to minimise the variation of mean GI values (Wolever et al, 1991, 2002). For example, a simulation study carried out by Wolever et al (2003) found that the margin of error of the estimation of mean GI was reduced significantly from one to two reference measurements. Secondly, we were unable to enforce a strict standardization of diet and physical activity 24 hours prior to the test days which may reduce the reproducibility of the results. An ideal example would be that the subjects consumed a meal of their choice prior to the overnight fast and then would have been required to repeat that same meal before each trial. Thirdly, the results may be subject to selection bias as the participants included in the mixed fruit trials were also th e investigators of the study and randomization was not used. In addition, due to the 10% drop out rate, it is possible that the degree of statistical power and precision was reduced as recommendations are that glycemic trials include a minimum of 10 participants (Brouns et al, 2005). Although, several strengths include the appropriate use of a repeated measures design which ensures less individual differences and allows the inclusion of fewer participants. Another strength is that the protocol closely followed evidence-based recommendations. Conclusion In conclusion, our results indicate the consumption of a variety of fruits including banana, mango, passion fruit, kiwi, raspberry and pineapple have a low GI and that processing these fruits with a Nutribullet generated further benefits, such as a significantly lower GI and a more favorable glycemic response. A higher proportion of the subjects presented a low GI for both of the Nutribullet treatments. These results are in conflict with current recommendations to restrict or avoid fruit smoothies. However, much evidence has indicated that the fibre content of fruit is still present after domestic and commercial processing treatments. More so, the evidence suggests that the presence of fibre within the processed fruit is still potentially having several beneficial effects on the postprandial glycemic response, such slowing gastric emptying and reducing the amount of available glucose through binding mechanisms. These results could potentially have clinical implications for healthy an d T2DM subjects who include these fruits in their diet. However, more research is needed 1. to determine if these effects are reproducible and 2. to determine the safety of diabetics consuming different fruit treatments produced by Nutribullet and/or other domestic appliances. Future research should further investigate the potential mechanisms involved with Nutribullet blending and how they are causing an altered glycemic response.