AACT 4435-01/ACCT 6636-01 Federal Tax 2
Exam #3 Fall 2014
Chapters 9-12 Name: Dengyuan Wan | Date: 12/13/2014 | Grade: |

Examination instructions: 1) The examination is intended to test your knowledge of the topic covered in chapters 9 through 12 of the course text. 2) Answer all questions on the examination paper in the spaces provided. 3) Read the questions carefully. If you need to make any assumptions you must state them in order to receive credit. 4) This exam consists of the following: a) 20 true and false questions worth 1 point each for a total of 20 points. b) 8 critical thinking problems worth 10 points each for a total of 80 points.
**5). In order to receive partial credit on the problems you will need to show your calculations.

True and False (1 point each) | Problems (10 points each) | 1 __T___ | 1 _______ | 2 _____ | 2 _______ | 3 ___ ___ | 3 _______ | 4 _______ | 4 _______ | 5 _______ | 5 _______ | 6 _______ | 6 _______ | 7 _______ | 7 _______ | 8 ______ | 8 _______ | 9 _______ | | 10 _______ | | 11 _______ | | 12 _______ | | 13 _______ | | 14 _______ | | 15 _______ | | 16 ______ | | 17 _______ | | 18 ______ | | 19 ______ | | 20 _______ | |
True and False

1. A tax credit produces a tax benefit only to the extent of the effective tax rate in the taxpayer's top bracket multiplied by the amount of the credit.
2. Child care expenses incurred by a taxpayer who is attending a full-time course of studies at an educational institution may be included in the credit computation.
3. The credit for the elderly applies only to individuals age 65 or older.
4. Foreign income taxes paid to a foreign country may be claimed as a credit against United States income tax or deducted as an itemized deduction.
5. An excess FICA credit may be