1. Which of the following is not normally a tax-paying entity under the Federal income tax?
a. The regular corporation
b. The estate of a deceased individual
c. The partnership entity
d. A trust for the benefit of a minor child
2. Sandy and Dave formed a law partnership, agreeing to split the income 50:50. The partnership had net income of $100,000. Dave withdrew $55,000 throughout the year, and Sandy withdrew $50,000. Dave and Sandy had no other income. Because of the partnership activities, Dave’s A.G.I. increased by
a. $100,000.
b. $55,000.
c. $50,000.
d. $35,000.
3. G is an eleven-year-old heiress whose share of income from various sources is as follows for the current year:
G’s Share of
Entity’s G’s Share of
Source Net Income Distributions
LM Trust $45,000 $30,000
ABC Partnership 80,000 22,000
XYZ Corporation, a C corporation 480,000 76,000
Interest from bank savings account 50,000
G’s A.G.I. (ignoring the deduction for one-half of any self-employment tax, if any) is how much?
a. $178,000
b. $605,000
c. $251,000
d. $236,000
