1.Which of the following statements concerning educational tax credits

1.Which of the following statements concerning educational tax credits and savings opportunities is correct?(Points : 0.28) The Lifetime Learning Credit is equal to 10% of qualified educational expenses up to a certain limit.The American Opportunity Tax Credit (AOTC) is only available for the first 3 years of postsecondary education.A parent who claims a child as a dependent is entitled to take the AOTC credit for the educational expenses of the child.The contribution limit for Coverdell Education Savings Accounts is applied per year per donor.Question 2.2.Mitch and Jennifer have AGI of $125,000 and have not planned for their children’s education. Their children are ages 17 and 18 and the parents anticipate paying $20,000 per year, per child for education expenses. Which of the following is the most appropriate recommendation to pay for the children’s education?(Points : 0.42) 529 Savings Plan. PLUS Loan. Pell Grant. Coverdell ESA.Question 3.3.Tan and Chia are contemplating making a contribution to their grandchildren’s education fund. They are both retired, have a significant amount of discretionary income and are concerned about estate transfer taxes. Which of the following education planning techniques would you recommend?(Points : 0.28) Prepaid Tuition. Coverdell ESA. UGMA or UTMA. 529 Savings Plan.Question 4.4.All of the following statements are true, except:(Points : 0.28) The American Opportunity Tax Credit is only available for the first four years of post- secondary education. The Lifetime Learning Credit is only available for the first two years of post-secondary education. The American Opportunity Tax Credit is awarded on a per student basis. The Lifetime Learning Credit is awarded on a per family basis.Question 5.5.Which of the following types of aid are not need based?(Points : 0.28) Pell Grant. Plus Loan. Perkins Loan. Subsidized Stafford Loan.Question 6.6.The following type of financial aid is awarded to students with a low EFC, and funds are guaranteed to be available if a student qualifies:(Points : 0.28) Pell Grant. Plus Loan. Work Study. Stafford Loan.Question 7.7.Roshan is a freshman at Florida State University where his tuition is $4,000. Shante, his older sister, is a graduate student at Expensive University, where tuition is $25,000. What is the maximum tax credit Roshan and Shante’s parents can take?(Points : 0.28) $2,000. $3,650. $3,800. $4,500.Question 8.8.Amy filed her tax return on April 15. At that time, she owed $800 on a total tax liability of $10,000 and she submitted a check for $800 with her tax return. Which of the following penalties will apply to Amy?(Points : 0.42) Failure to file. Failure to pay. Underpayment of estimated tax. None of the above.Question 9.9.Arturo, a consultant, uses the cash method of accounting for his business. Arturo recently provided consulting services to his best customer Sergio. When should Arturo recognize income from this service?(Points : 0.28) When Sergio writes a check, made out to Arturo. When Arturo deposits Sergio’s check. When Sergio gives the check to Arturo. When Sergio receives an invoice from Arturo for the service.Question 10.10.Angie and Patrick were married on September 1 of this year. Following a honeymoon in Hawaii, Patrick died of a heart attack. Neither Angie nor Patrick had any dependents. What filing status can Angie use this year?(Points : 0.28) Angie must use the single filing status because she was not married as of the end of the year. Angie must use the single filing status because she was not married as of the end of the year. Angie will be able to file as married filing jointly as long as she would have qualified for this filing status if Patrick had survived. Angie may use the head of household filing status. Angie will be eligible to file as a surviving spouse.Question 11.11.Which of the following is not an itemized deduction from adjusted gross income?(Points : 0.28) Alimony paid. Medical expenses in excess of 10% of AGI. Charitable contributions. Home mortgage interest.Question 12.12.Under which of the following circumstances must a taxpayer itemize his deductions?1. When the taxpayer has been married for less than one year.2. When the taxpayer is married and files a separate return and the taxpayer’s spouse itemizes his or her deductions.3. When the taxpayer is a nonresident alien.(Points : 0.28) 1 and 2. 1 and 3. 2 and 3. 1, 2, and 3.Question 13.13.Which of the following is not an available filing status?(Points : 0.28) Qualified dependent child. Married filing jointly. Head of household. Surviving spouse.Question 14.14.Cost basis is the initial basis an investor acquires in an asset by using capital to purchase the investment.(Points : 0.28) True FalseQuestion 15.15.Which of the following is not excluded from gross income?(Points : 0.24) Gifts. Scholarships. Interest income from municipal bonds. Dividend income.