B. Acy Bachelor of Accountancy Tax Accounting (REG) 1 — Questions and Answers
Question 1: Which filing status generally results in the lowest tax rate for a single parent with a dependent child?
- Single
- Head of Household (Correct answer)
- Married Filing Separately
- Qualifying Widow(er)
Correct answer: Head of Household
Head of Household provides wider tax brackets and a higher standard deduction than Single status for eligible taxpayers.
Question 2: Under US tax law, what is the standard deduction for a single filer for tax year 2024?
- $10,400
- $12,950
- $14,600 (Correct answer)
- $13,850
Correct answer: $14,600
The standard deduction for a single filer in 2024 is $14,600, adjusted annually for inflation.
Question 3: Which of the following is NOT a deductible business expense under IRC Section 162?
- Employee salaries
- Rent for office space
- Capital expenditures for equipment (Correct answer)
- Business travel expenses
Correct answer: Capital expenditures for equipment
Capital expenditures must be capitalized and depreciated rather than immediately deducted as ordinary business expenses.
Question 4: What is the maximum annual contribution limit for a Traditional IRA for an individual under age 50 in 2024?
- $5,500
- $6,000
- $6,500
- $7,000 (Correct answer)
Correct answer: $7,000
The 2024 IRA contribution limit is $7,000 for individuals under age 50.
Question 5: A corporation's tax return (Form 1120) is generally due how many months after the close of its tax year?
- 2.5 months
- 3.5 months (Correct answer)
- 4 months
- 6 months
Correct answer: 3.5 months
Form 1120 is due on the 15th day of the 4th month after year-end, which is 3.5 months after a December 31 year-end.
Question 6: Which depreciation method is used for most personal property under the Modified Accelerated Cost Recovery System (MACRS)?
- Straight-line
- Double declining balance (Correct answer)
- Sum-of-the-years digits
- Units of production
Correct answer: Double declining balance
MACRS uses the double declining balance method switching to straight-line for most personal property to accelerate depreciation.
B. Acy Bachelor of Accountancy Tax Accounting (REG) 1
Which filing status generally results in the lowest tax rate for a single parent with a dependent child?