Rewarding and Punishing the Same Behavior

In this report, the reasons are explained with examples that lead managers of organization toward an unethical decision. People believe that deep unethicality distorts ethical decision making. But according to Ann Tenbrunsel and her colleague David Messick, the top level management of an organization often takes such unethical decisions out of thinking business purely rather than considering morality. The phenomenon is named as â€Å"Ethical Fading†. Sometimes leader’s ill-conceived goals lead employees to involve in unethical activities. For example management wants employees to maximize sales rather than profit. As a result employees force customers to sell their product and sometimes they become ridiculous. Also sometimes they overcharge for the unexpected service which the customer doesn’t want actually. Leader’s setting goal should take the perspective of those whose behavior they are trying to influence and think through their potential responses. This will help head off unintended consequences and prevent employees from overlooking alternative goals. People ignore some information which can affect their interest can termed as motivated blindness. For example some rating agencies rate organizations positively since the agencies are paid by those organizations. So people fail to judge organizations due to due to serious violation of ethical practices by the agencies. Bazerman and Harvard Business School Professor Francesca Gino explored to a situation termed as slow emergence of unethical behavior. This slow poisoning is often overlooked by the management which led to ultimate failure to hold the objective of the organization. For this managers should be heightened alert for even trivial-seeming infractions and address them immediately. Another common practice in corporate world is to overvaluing outcomes. Like rewarding unethical decision for its good outcomes and punishing ethical decisions for bad outcomes is a recipe for disaster in the long run. Managers should beware this bias; examine the behaviors that drive good outcomes and reward quality decisions, not just results. Companies are trying to improve the ethicality of employees according to Bezerman and Tenbrunsel. But this ethical practice should not be forced. Management should create such environment or make structure where employees willingly accept ethical practices and work accordingly. Above all, a leader should should be concern about his own blind spots, which may permit or even encourage, the unethical behaviors that he is trying to extinguish.

Organisational Behavior Assignment

Groups and Organizational Dynamics Assignment Prof. Nafisa Kattarwala Submitted by – Ryan Pereira PT-MBA Div. B Roll No. 39 What are the types of groups you have worked with in an organization, what are the conflicts that had arisen and how did you resolve them? A group is defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives. Groups can be either formal or informal. Formal groups are those groups that are defined by the organization’s structure, with designated work assignments establishing tasks.Informal groups are alliances that are neither formally structured nor organizationally determined. Informal groups are natural formations in the work environment that appear in response to the need for social contact. Formal groups are further classified into command groups, task groups and functional groups whereas informal groups are classified into interest groups and friendship groups. As an employee of JPMorgan, I had the privilege of working with a wide variety of groups ranging from functional (formal) groups to interest and friendship (informal) oriented groups.The formal functional group which I was associated with had been formed in order to achieve the organizational objective. As a part of the corporate actions and income processing team, my groups’ primary function was to ensure corporate action notices were sent out to clients in a timely fashion and ensuring payment of incomes (dividends and coupons) to all entitled JPMorgan clients were completed as per the specified deadlines. We were a group of 5 individuals (4 males and 1 female). The conflict that had initially risen within this formal functional group was the work allocation to males and females.As the team was usually heavily burden with volumes throughout the major part of the week and as the female in the group had to leave early to take care of household activities, she had informed the group that she w ould not accept additional work and will be working for only a fixed number of hours. This did not go well with the rest of the male employees who had to put in extra hours in order to complete the work. The male employees felt that she was taking undue advantage of the fact that she was a female and taking on less work and responsibilities as compared to them.As the team leader was on an extended leave, it was the operations analyst’s responsibility to handle the situation and maintain order in the group. As I was the operations analyst in the group, I ensured that the interests of all the parties in the group were met by requesting the female member of the group to do an early shift (early morning 7 AM to 5 PM) so that she could handle a majority of the workload in the morning and could leave at her scheduled time so that she could also complete her household activities.In this way the interests of the female employee was met as well as that of her male colleagues who had r elatively less workload at the latter part of the day as compared to before the conflict. The second group that I was associated with was informal in nature and was an interest group. JPMorgan has a wide variety of hobby groups that an employee can join, in order to enrich the employees’ interest in certain hobbies like reading, trekking, etc.I had enrolled myself in the reading group as I am an avid reader and knew that JPMorgan has an extensive collection of books and literature and could benefit extensively from my associations with the group. The group used to give out books (novels of all genres – management, science fiction, adventure, autobiographies, crime, detective, etc. ) to employees for a period of two weeks after which the employee would be requested to return the book to the group so that the group could lend the books to others.The group used to also hold book reviews and discussions on many occasions. The conflict that arose in this group was that a fe w group members felt that only they were actively participating in the reading group and the others were just there for name sake and were like sleeping partners. The members felt that there were individuals in the group who were not even responsible for the books lent by them to employees nor did they keep accurate tabs on those who had taken the books and had not yet returned the books as per the scheduled deadlines.As a result of this irresponsibility, the group had lost/ misplaced several titles from its collection and the books could not be replaced as the group was formed as a recreational group without any funding from senior management for purchasing books. The books that were in possession with the group were donated by employees and colleagues over the years and the collection had amassed to an impressive one.The group decided that as there were indeed individuals who were contributing relatively less as compared to the other individuals in the group, the group should list down all the activities that it entails and should allocate jobs/ tasks to each individual in the group. There should be primary, secondary and tertiary roles assigned to individuals so that no task/ group activity is left unchecked if one or two employees of the group were absent on a particular day.This way each individual in the group is given the responsibility of a certain group activity or task and no individual is sitting idle in the group without any work or with making any contribution in the group. Furthermore, it was decided that the tasks/ group activities would be rotated amongst the group members so that no one individual gets bored/ uninterested with the same activity and so that all the members in the group gets a hands on approach to all the activities of the group. The rotation was done on a month to month basis and quarter basis depending on the activity.The third group that I was associated with was an informal friendship group. In JPMorgan, I had the privilege of meeting some amazing and extremely talented people. I was fortunate enough to form a lasting bond of friendship with such individuals. These individuals were from different backgrounds and had different thought processes and hence I was able to learn a lot from them. We were a total of seven friends at JPMorgan – four males and 3 females. All of us were from different departments and used to sit on different floors of the same building, but we used to meet up to have lunch together as a group.We used to co-ordinate amongst ourselves and used to meet in the office cafeteria. In a span of one year we had become really good friends and had some truly memorable times with each other. One day when the entire group was seated for lunch at the office cafeteria, a conflict of sorts broke out amongst the group when one of the guys in the group made a general statement and one of the girls in the group took the statement personally and felt that the statement was directed at her as an insult.The guy in the group did not intentionally want to insult the girl but the girl took the statement in that manner. Due to this miscommunication, there was a cold war between the girl and the guy and those that were around them. The rest of the friends in the group did not understand why the two were behaving in such a negative manner towards each other. All those who were part of the group started acting differently around each other as they too were friends with the guy and the girl in some way or the other and they could not take sides.Due to this there were a lot of petty issues which were brought up and made into big issues as the group started fighting amongst themselves. In the end, we all split up and are no longer in touch with each other. We decided to stay apart as the incident created a riff in the friendship which could not be bridged. These are some of the groups that I was associated with along with the conflicts that had been faced and how they were resolved .

Expected Pattern of Development from Birth to 19years

Expected pattern of development from birth to 19years AgePhysicalCommunication and intellectualSocial,emotional and behavioural 0-3 monthsGross- waves arms and brings hands together over body. Fine-clasps and unclasps handsThrough crying and physical contact. Smiles back when they see a smiling face.. Babies may stop crying after they are picked up or by hearing a familiar voice. By 3 months they get excited when its time to feed 3-6 monthsGross-rolls over from back to front and moves head to watch others Fine-reaches for a toy and moves it from one hand to anotherEnjoys rhymes and action songs. Uses sounds to gain attention.Can laugh showing a range of feelings. Stops crying when talked to and reaches out to be held. 6-12 monthsGross-sits unsupported and likely to be mobile e. g. rolling or crawling. by 12 months may stand alone briefly. Fine-grasps objects with index finger and thumb. Starts to babble and enjoys looking at books. They also watch and copy adults. Is affectionate tow ards family and primary carers but discriminates between strangers and family. plays peek-a-boo. 1-2 yearsGross-may walk holding onto furniture, by 2 years will walk unaided. Fine-uses spoon to feed, can hold own cup and will start to scribble. Also read: Child Development Not Following Expected PatternWaves bye-bye, fingers point to objects to draw attention to adults. Less babbling and more recognisable words e. g. â€Å"no†,†come†Cries when left with someone they don’t know. keen to explore as they become more confident. Also interested in other children but does not play cooperatively. 2-3yearsGross-uses sit and ride toys and able to run. At this stage they are able play on slides. Fine-draws circles and turns pages in books. Points to pictures of familiar objects and names them. Start to recognise shapes. Starting to use sentences or putting words together. Playing imaginatively e. g. on the home corner.Shows kindness Begins to understand anger and feelings. Gets frustrated when they don't get what they want. Separation from carers remains an issue for some unless they know who they staying with. 3-4yearsGross-walks upstairs with alternate feet. Runs backwards and forwards. throws a ball. Fine -draws face with features washes and dries hands with help. Use language to say how they are feeling because speech is understandable most of the time. Can name some colours and can verbally count to 10. constantly asks questions. Listens attentively to age appropriate stories. Start to understand the consequences of own behaviour.Can express their thoughts resulting in decrease in tantrums. Seeks approval from adults. 4-5 yearsGross- aims and throws ball, walks in a line. Climbs ladders, tree and playground equipment. Fine-draws a person with head, trunks and legs. Memory develops which allows recall of songs and rhymes. Imagination develops. Start to understand symbols e. g. writing and reading. Aware of others emotions and gender roles. Will follow basic rules and seeks play with peers in groups. Attends to own toilet needs 5-6 yearsGross- runs quickly and able to avoid obstacles. throws a ball to a partner and catches it.Fine-has control of pencil to form letters. Colours in pic tures. Attention span increases and the development of vocabulary extends communication. Most children know the alphabet and can name upper case and lower case. Enjoy a joke. Physical care needs are developed. Understand the rules of games. Often has one or two focused friendships. 6-7yearsGross-hops skips and jumps confidently, balances on a beam and uses wheeled toys e. g. roller skates. Fine-cuts out shapes accurately. ties and unties shoelacesShows reasoning skills but still using trial and error learning. Able to carry adult like conversations.Uses appropriate verb tenses, word order and sentence structure. Have strong friendships. Develops self help skills e. g. wiping up spills. Uses language rather than tantrums or physical aggression to express displeasure. 7-12 years Gross- Increased coordination skills which allow more concentration on games like football/netball. Fine-skills are refined allowing work like model making and typing. Able to reason and use logic to solve pro blems. Show creativity in role play. Begins to use information form one situation and transfer to another.Some are keen to show inappropriate behaviour to gain attention from adults and admiration from other children. 12-19 yearsPuberty begins for boys between 14-17 years and for girls between 13-16 years. May became sexually active Gross-stamina increases which allow for them to walk for longer distances and take part in energetic sports. Fine -increase of strength in hands enables movement such as twisting lids of jars. Question sources of information e. g. parents,books and teachers. Start to change physically and hormones affect their mood. Making a transition from dependence on family to independence.

Marketing Management Examination Essay Example | Topics and Well Written Essays - 5000 words

Marketing Management Examination - Essay Example Product 20 B. Price 21 C. Promotion 22 D. Place 23 References 25 1a. Internal environment of Nokia The following points represents internal environment of Nokia’ 1. Place for Product based Innovation 2. Demand for craftsmanship within the company 3. Demand for high product design 4. Declining market share 5. Lack of brand identity for Nokia Talking on the above mentioned points, there can be a broad array of issues that can be highlighted in this case. 1. Place for product based innovation: It can be said Nokia, being a company that has technology based offering in its product portfolio always realizes the need to create value on a regular manner for its customers. The company believes that since they are in the technology industry, the product life cycle is very small. In an attempt to generate value for the customers, they will have to keep on producing high level of innovative features and new products, so that they can retain the interest of the consumers to their products . As a result, Nokia has developed itself as a hub of product innovation 2. Demand for craftsmanship: The Company Nokia has identified the fact that in an attempt to create value for the customers, they have to focus on the process of creating products of luxury status, which will create a tremendous level of appeal to the customers belonging to the wealthy as well as upper class people of the society. As a result of this, during the process of production of the luxury status phones like Vertu, the company focused on developing mobile phones that requires high level of craftsmanship that will provide an excellent appeal of the company’s products to the elite category customers. 3. Demand for high product design: Nokia has realized that since they cater to the technological sector, hence the demand for providing highly innovative product design is typically high. In order to provide innovative products, the company keeps on providing product that have been designed on the basi s of new product design. 4. Declining market share: It can be said that the company has faced a decline in the market share as a result of various internal issues ranging from the lack of accountability as well as inefficiency arising out of incompatibility in the leadership styles. The company’s representative from the top level management also highlighted that the issues related to the lack of synchronization among various divisions of the company has automatically taken its toll in the process of delivering products of innovative nature on a regular basis. 5. Lack of brand identity: It needs to be mentioned that the entire product offering of the company lacks a factor related to brand equity. Though the company has attained high level of consumer popularity in the previous years’ among a wide range of customers, it can be said that the popularity was mostly related to the luxury category mobile phones named Vertu. So, naturally, it can be said that the company lack s a proper and original brand identity in the market in the recent times. General trends Points: 1. New operating structure 2. Shift to touch screen phones 3. Value added services 4. Counterfeiting issues Talking in broad manner, the following can be mentioned 1. New operating structure: Nokia’s luxury division, Vertu was operating on its own through effective decision making processes. The change that have been initiated as a part of strategic restructuring might hamper the company luxury division’

The expansion of Civilization in South ans Southeast Asia Essay

The expansion of Civilization in South ans Southeast Asia - Essay Example ia that developed printing in China, health care information from Buddhists, and technological advancements in astronomy, mathematics, and linguistics. The Gupta Dynasty replaced the Kushans, wherein afterwards, Buddhism changed from being a way of life to other sub-branches of Buddhism. Buddhism branched out to Therevada Buddhism that asserted that they preserved the old teachings and that Buddhism is a way of life, and Mahayana Buddhism that taught Buddhism as a religion and that must be attained through both devotion and painstaking observance of proper behaviors. Buddhism became less popular in India probably because of the rise of competition in religions and its rejection of dominant cultural and socioeconomic Indian beliefs. The development of a revived Hinduism and the arrival of Islam increasingly became more popular than Buddhism. Buddhism also rejected the existence of a soul that opposed a dominant Indian spiritual belief. At the same time, Buddhism resisted social class definitions, which threatened the socioeconomic structure of India. Islam arrived at India through its eastward spread from the Arabian Peninsula during the seventh and eight centuries to Persia and the mountains of the Hindu Kush. After Indian pirates attacked an Arab ship near the Indus River, the Muslim ruler demanded an apology from the rule of Sind, a Hindu state, but the latter declined. Muslim forces attacked and conquered Sind in 711 and expanded to Punjab. Mahmud of Ghazni expanded the Islamic state in India from 997 to 1030 up to the upper Indus valley and far into the South of the Indian Ocean. Though subsequent Islamic rulers were not as successful as Ghazni in widening Islamic territories, the Muslim peoples established states there because Indians often warred with one another and were not as united as the Muslims due to the latter’s different religions and ethnicities. Islam changed Indian society in terms of religion by offering an alternative religion to Hinduism

In a well-organized Essay, respond to two of the following questions Essay

In a well-organized , respond to two of the following questions - Essay Example The First World War was triggered by both long-term and short-term factors and some of the long-term causes include alliance system1 particularly the long-standing alliances between central powers including Germany and Austria Hungary versus Triple Entente that comprised of Britain, France and Russia. Secondly, World War 1 was caused by imperialism, that is, most European countries wanted to expand their territory and some historian have described this war as an imperialistic struggle.2 Another long-term cause of the First World War is nationalism whereby, there were rivalries between European countries resulting from colonialism. Finally, arms race is also another triggering factor of World War 1 because Britain and Germany had the best navies during that period and so naval rivalry between the two countries played a significant role in the emergence of World War 1. In addition, there were also short-term causes of the First World War and these include Austria-Hungary’s attac k on Serbia among others. World War 1 had political, economic and social consequences, first, it led to the emergence of Versailles Treaty that stated that Germany had to pay reparations and disarm. More so, some countries started fighting for their independence. Economically, it led to worldwide depression, which lasted for years. Socially, it resulted to massive loss of lives, and left many individuals in Europe with home and food among others. The Second World War followed and it was the most widespread conflict that negatively affected the world. 3A number of factors including the Versailles Treaty that had imposed unfair conditions on Germany caused this war and this may have forced them to start the war. Secondly, the weakness of the League of Nations as it was not able to control aggressive actions of the axis powers when England and France embraced the policy of appeasement towards them.

Patronage & Clientelist Politics Presentation Essay

Patronage & Clientelist Politics Presentation - Essay Example However, upon a closer inspection, it you will realize that these institutions have nothing compared those found in the western countries. Simply put, they lack validity because no one trusts they are fulfilling any social contract to serve neutrally on behalf of each and every citizen. South Africa has civil services, or bureaucracies, but yet again, they are badly "patrimonialized" to their core, and only few (if any) bureaucrats uphold the societys interests before their own individual benefits (Lindberg, 2008). To be brief, there is no separation between the public and the private in South African politics. You will wonder on why this remains so. It could be for the reason that the British colonial rule never left adequate liberal democratic institutions fully installed in the last almost two decades, or it could be because the independent state of South Africa moved too hastily toward authoritarian decree. Opinions vary, and no one has the definite answer to the problem. What is undeniable, however, is that South African and other African governments are highly centralized politically. Power is not dispersed or diffused properly among the distinct branches of government. They lack "checks-and-balances" (Myers, 2008). There lacks presence of pluralism in their civil society individuals and diverse society interest cannot influence the public policy. In South Africa, only elites are paid attention to, and rivals- reformists are oppressed. Political opposition parties, for instance, are often beleaguered. Or, if a challenger or rival does manage to go past the oppression, they become eas ily subject to co-option (known also as co-optation) whereby their threat is defused by being offered a position in the state structure. There, they are used as political machines. Although there are vibrant inequalities within these clientelistic relations, the patrons suffer considerable constrictions. In

Defoe's Robinson Crusoe Essay Example | Topics and Well Written Essays - 500 words

Defoe's Robinson Crusoe - Essay Example However, Robinson Crusoe does not heed these warnings and sets out twice more on the sea. The first of these trips is to Brazil (without incident). The second and fateful trip which ultimately lands him on the desert island is the trade mission he engages upon to Guyana in Chapter 5 (Defoe, 1982). Once shipwrecked, without any shelter, dwelling, friends, comrades, family, amenities of a comfortable life, or supplies to speak of, Crusoe comes down with a high fever during a monsoon. This parallel to hubris and the utter humiliation of mankind’s best efforts is a direct parallel to the Greek writers nearly two thousand years prior to Defoe’s Robinson Crusoe. In this way, Crusoe experiences a Job like conversion and understands his hubris; therefore, he confesses his many sins of this life and sets out to read and study the New Testament with a renewed vigor. With the modern connection as it relates to Defoe’s Robinson Crusoe, the most obvious connection is to the film Castaway. Although the obvious connection is both works center around individuals who find themselves alone on a desert island, the parallels are far greater. The fact is that the underlying character development of both Castaway and Robinson Crusoe hinges upon the moment immediately following despair, self-loathing, hopelessness, and contemplations of death when the protagonists realize that this is their moment to define what they will do and how they will survive under difficult circumstances. Robinson Crusoe experiences a high fever accompanied by severe weather and a hallucination in which God speaks to him. On the other hand, Chuck Noland’s epiphany only comes after he opens the â€Å"forbidden fruit† of the FedEx packages washed ashore with him and finds useful items that can aid him in his quest for survival. In this way, both characters experi ence

Country Study on Malaysia Term Paper Example | Topics and Well Written Essays - 1500 words

Country Study on Malaysia - Term Paper Example 60 per cent of the population comprises ethnic Malays, 26 per cent of the population is Chinese while the rest are Indians and other indigenous races. Since 1971, Malays have witnessed positive discrimination and ethnic Chinese are wealthiest of all communities in Malaysia socially as well as politically whereas the Indians are the poorest. The global economic downturn has dented the economic prospects in Malaysia. The government introduced an economic stimulus plan worth $16bn in 2009 to deter the effect of the approaching recession (â€Å"Malaysia Profile†). Branding association of Malaysia The Branding Association of Malaysia was established in July 2000. It advocates unity between the member countries in order to identify solutions to policies and problems that are challenges to the brand. The Branding Association of Malaysia has contemplated the establishment of a branding association for the Asean countries so that brands’ needs across the region with respect to p roduct promotion and marketing can be addressed. Countries member of Asean include Malaysia, Indonesia, Singapore, Brunei, Myanmar, Laos, the Philippines, Thailand, and Vietnam. President Datuk Eric Chong has suggested all member countries to establish their branding association by approaching small and medium enterprises and identify valuable brands: â€Å"We are ready to help Asean business associations to establish similar organisations like us. Currently, we are helping our friends in Thailand to set up a branding association† (Chong cited in â€Å"Branding Association†). Business communities can use the branding association in order to prepare for the 2015 Asean Economic Community. As an Asean member, Malaysia has taken effective measures for greater liberalization of trade among the member countries in 2003 to realize the ASEAN Free Trade Area (AFTA). ASEAN Economic Community (AEC) is another major trade initiative that strives for the achievement of economic and trade integration regionally by the year 2015 so that free flow of services and goods, capital and investment can be facilitated among the member countries. According to the research carried out by the World Trade Organization, benefits obtained from the trade facilitation reform would affect ASEAN significantly. For example, trade would be boosted by 7.5 per cent with the improvement in port facilities and by 5.7 per cent with the improvement of competitiveness in the sector of internet services in the region (â€Å"Doing business in† 16). Resources Malaysia is a resource-rich country. The two main exports of Malaysia are palm oil and petroleum. Petrol is nationalized and its revenues contribute up to 40 per cent of the annual governmental budget of Malaysia (Coca). The palm oil conglomerates in Malaysia are the world’s largest and make up 39 per cent of the palm oil production all over the world (Coca). Natural resources were almost a third of the total exports of M alaysia in 2012 (Coca). While the resource-rich countries conventionally experience the eruption of civil wars in them because of decreased dependence on the taxes for revenues and accordingly lesser accountability to the citizens, Malaysia is one such resource-rich country that has shown growth and stability by making correct use of its resources. Malaysia is located alongside the world’s busiest trade route i.e. the straights of Malacca. Malaysia

Maritime Environmental Issues Essay Example | Topics and Well Written Essays - 1000 words

Maritime Environmental Issues - Essay Example El Nino is characterized by extended differences on surface temperatures in Pacific Ocean compared to the average temperature value. It is a cooling or warming of at least 0.9 0F or 0.5 0C in average over east central of tropical Pacific Ocean (Philander1990). In general, the anomaly takes place at an interval of between 3 to 7 years regularly and lasts for between nine months and two years. This anomaly is characterized by events such as: rise in pressures in the surface over Australia, Indonesia, and Indian Ocean; a fall in atmospheric pressure over the eastern and central Pacific Ocean and Tahiti; arising warm air near Peru which usually causes rains in the deserts of northern Peruvian; weakening trade winds in Pacific; and spreading warm water from the west Pacific to the east Pacific and Indian Ocean. This causes extensive drought in west Pacific and rain to the eastern Pacific which is normally dry (Hayes 1991). El Nino is often characterized by warm temperatures, this is becau se of its warm rush of the tropical water that is poor in nutrients and is majorly heated by its tendency of eastern passage through the equatorial current where it displaces the cold water on the surface of the Humboldt Current which is rich in nutrients (McPhaden 1993. In cases where El Nino conditions and/ or episodes lasts for quite long, then the reduction in the trade winds in the east and the extensive warming of the ocean limits the nutrient rich cold deep water together with its economic effects to the local fishing for the international market (Lee 2000). These quasi periodic patterns of climate are experienced across tropical Pacific Ocean approximately after every 5 years. The anomaly phenomenon takes place due to the Southern Oscillation which varies the air pressure of the surface water in the western Pacific and the temperatures of water surface in the eastern Pacific Ocean (Brown 1986). It is the extremes of the oscillations that results into the anomalies of the wea ther conditions in many parts of the world. Those developing countries that boarder Pacific Ocean are widely affected. The phenomenon that characterizes El Nino with unusual warm temperatures of the surface of the ocean in the eastern and central tropical Pacific and unusual cool temperatures of the surface water of the ocean in the central and eastern tropical Pacific, results from the strong circulation of the air in the tropics. This oscillation is famous for influencing climate patterns and weather around the globe (Roberts 1993). Observations have been made on the occurrence of the events resulting from La Nina and El Nino. There is a drift towards the cool neutral side in relation to the sub surface and surface of the temperatures of the ocean along side various changes in the circulation of atmosphere (Dietrich 1999). These changes have indicated a drastic movement in the odds of La Nina that forms in the forthcoming period. This has resulted into uncertainty and the need for close monitoring for any particular signs of future developments. Today, El Nino has been characterized by oscillation of the atmosphere system of the ocean in the tropical Pacific which poses very significant consequences on the weather and climate around the globe. These consequences include high rainfall in Peru and the southern tier of the Unites States, drought and destructive flooding in West Pacific, and in some cases associated with distressing bush fires in Australia (Herpes 2001). El Nino results into warmer winters

Ethics Case Study Essay Example for Free

Ethics Case Study Essay Utilitarianism Utilitarianism would not qualify Tom falsifying data as unethical, as it would have the greatest benefits to the larger quantity of stakeholders whilst only bringing a limited amount of harm. This can be seen through the stakeholders who benefit from Tom gaining full-time employment such as; his parents, the child receiving the life-saving sponsorship, the charity and the government, as Tom could start paying his HECS debt. One stakeholder who would be harmed by Toms dilemma is the small accounting firm in Milton. Ultimately the risk of this actually harming the business due to his lack of experience would be minimised due to Tom being tightly supervised for the first year of work. Egoism also maintains that the agent should do whatever they ought to do if it benefits themselves. In Toms moral dilemma, if he falsifies his CV in order to achieve full time work, he is acting on the natural instinct of self promotion that egoism sees as ethical. Kantian ethics Kantian ethics maintains that there are some things that are deemed wrong in themselves, apart from their consequences. This means that Tom should regard the act of lying as wrong; regardless whether it brings about good results. Kants categorical imperative states I should never act except in such a way that I can also will that my maxim should become a universal good† (Kant, 1996). In universalising a law that is not in relation to specific circumstances, it allows moral issues to be solved by pure rationality. When applying Toms situation to Kants universalisation theory, a maxim for Toms situation could be â€Å"one should falsify data if it benefits them†. This could not be accepted as a law universally as falsifying data could not be consistent, as eventually all data would be deemed tainted and therefore unusable, leading to the act of giving information to its own demise. If it  were ethical for Tom to falsify data, Tom would have to accept that it would therefore be ethical for everyone to do so. If everyone was free to fake data, universal lying would weaken trust in communication. Kant also states â€Å"act in such a way that you treat humanity, whether in your own person or in the person of another, always at the same time as an end and never simply means† (Kant, 1996). If Tom falsified his CV, it would result in disrespect as the owners of the accounting firm are basing crucial business decisions on inaccurate data, which is unethical. Virtue ethics Applying virtue ethics is based on evaluating how virtuous Tom is, not just the actions or consequences of his moral situation. A virtue that can be applied from Aristotles Doctrine of the Mean is ‘indifference’ meaning good deeds are done for their own sake and not for personal recognition. The two vices of indifference are false modesty (deficiency) and careerist (excess). Assuming Tom decided to fake his CV he would display characteristics in the vice of excess meaning he is a careerist and would not be classified as virtuous, and therefore unethical. Ranking of Ethical Theories 1. Utilitarianism/Egoism Utilitarianism is in line with many fundamental morals that society intends for us to adopt. For example, two fundamental ethical principles are that we must avoid doing harm to others and aim to do good. When I consider certain actions or decisions, I usually evaluate them in terms of their consequences. Although it disregards the ethical element of an action, it looks at the benefits it can cause in solving my moral dilemmas. Egoism also  usually takes part in most of my moral decision making. I usually base many of my decisions on the consequences I can achieve, therefore find this most useful. 2. Virtue Ethics I use virtue ethics to solve some moral issues due to the benefit of gaining insight into emotional and personal values in relation to the action. I believe people are emotionally involved in ethical reasoning making virtue ethics a better way to assess whether an action is ethical or not. I find this theory somewhat useful as I believe every situation cannot be branded under absolute rules, as in Kantian Ethics. 3. Kantian Ethics Although Kantian seems like the ‘right’ moral structure to follow it is extremely idealistic and would not necessarily result in good outcomes for me or the greater good of everyone. I think due to it being a rigid system, in certain situations for my moral dilemmas, it could not be used as Kantian ethics does not factor the importance of character and motivation in making ethical judgements. Therefore I dont believe I would assess the ethics of a dilemma accurately, finding this least useful. PART B Socially responsible organisations should aim to minimise their negative impacts, but the fast food industry faces extreme public criticism due to the effects it is having on some main stakeholders; consumers and communities. Fast food consumption is potentially harmful and if businesses adopt Friedmans’ shareholder theory by only focusing on short-term profit goals, the long-term welfare of customers is compromised. For example, Bowman, Gortmaker Ebbeling (2004), indicate that â€Å"energy derived from fast  food is  10% of a childs average recommended daily intake, 5 times more than the 1970’s†. This highlights the need for somebody to not only take responsibility but action. â€Å"Advertisers spend 100s of billions of dollars a year worldwide encouraging, persuading and manipulating children into a consumer lifestyle† (Beder, 1998), leading to devastating consequences. The narrow view by Friedman, where businesses adopt the ‘let the government do it’ theory is criticised as society now has a greater concern for a better quality of life which businesses could help achieve. Supporters of Freeman maintain that fast food corporations have a responsibility to their stakeholders and should acknowledge potential health risks associated with consuming fast food. Highly advertised food corporations should have responsibilities beyond enhancing their profits, because they have great social and economic power in society. This undeniable power discounts Friedman’s theory that the ‘business can’t handle it’. If corporations have such power, they should also take responsibility for its actions in these areas. Nature Neuroscience published a study linking â€Å"effects of fast food to those of addictive substances such as cocaine, heroin and nicotine† (Klein, 2010). If tobacco packaging in many countries legally have to display health warnings due to smoking being addictive, why does fast food packaging not have responsibility to do the same? Businesses who adopt a narrow view on CSR compromise stakeholders welfare. For example, on January 1954 in the US â€Å"main tobacco companies published a statement named ‘A Frank Statement to Cigarette Smokers’ reaching an estimated 43,245,000 Americans† (Cummings, 2002). The advertisement promised consumers that cigarettes were safe and denied all health risks to consumers. This resulted in millions of people dying due to lacking concern stemming from the companies understating health effects in a blind effort to create profit. This scenario could almost determine the future of fast food industries being irresponsible about  marketing to addicted consumers. If major food corporations dont undertake measures to outweigh unhealthy promotion to children and society, they might too face the same consequences.

Cirque Du Soleil Essay Example for Free

Cirque Du Soleil Essay Cirque du Soleil began in Quebec with two street performers (Guy Lalibert and Daniel Gauthier) back in 1982 and called their small group of young street performers ‘The High Heels club’ and decided to put on a small festival for the audience. By 1984 Cirque du Soleil was born, the name meaning ‘Circus of the sun’ in French. The main philosophy or aim of Cirque du Soleil is creativity and innovation of the circus to redefine the entertainment landscape, and thrill audiences around the world. Since its inception, Cirque du Soleil has created a lot of shows with incredibly different themes and issues. The most popular of these shows are: Saltimbanco- explores the urban experience in all its myriad forms, Alegria-explores power and the handing down of power over time, the evolution from ancient monarchies to modern democracies, old age, youth. Quidam-it could be anyone, anybody. Someone coming, going, living in our anonymous society. A member of the crowd, one of the silent majority. Dralion- Dralion derives much of its inspiration from Eastern philosophy with its perpetual quest for harmony between humankind and nature. Varekai- production pays tribute to the nomadic soul, to the spirit and art of the circus tradition, and to the infinite passion of those whose quest takes them along the path that leads to Varekai. Cirque du Soleil captures many dramatic forms including acts from contortionists, jugglers, feats of strength, clowning, dance, mime, light climates, puppeteers, stage maneuvers, comedy, interaction with public, acrobats and trapeze artists. An example of your typical act, is a man in a mouse wheel, being spun around in 360Â ° circles, doing tricks that amaze the audience because of the manipulation of gravity. Also, Cirque du Soleil does not make use of any such animals. Traditionally, Cirque du Soleil shows do not use pre-recorded music, with exceptions; all music is played live and in many circumstances sung live by singers with magnificent voices. The costumes used in the show are always very elaborate, or if flexibility is needed the costumes can be plain but are usually colourful and creative, matching the theme of the show. The sets for the shows are typically amazing again always matching the culture being performed on stage. Cirque Du Soleil has a vast range of characters in the huge number of performances and the company itself has over 4000 employees and 1000 artists. Characters in the performance are always bright, colourful and extremely skillful and always are doing amazing tricks that depict the theme of the show or that can lighten and entertain the audience. As the performance goes on most of the time you enter the life of some of the characters as they tell their life story (normally the host) and interact more and more with the audience.

Microsoft Visual Basic Programming Language Computer Science Essay

Microsoft Visual Basic Programming Language Computer Science Essay Microsoft Visual Basic is a programming language is which is easier and simpler to use than other programming languages for example Java, Programming in C, programming in C++. Visual basic is an ideal language for developing Windows-based, Database and Internet applications. Windows-based applications are event driven and they need good graphical user interface (GUI) support. Internet applications require web page programming support. Visual Basic provides a scripting language called VBScript to help you control and make your web pages interactive. Visual Basic can also be used to access database created using database management software (DBMS) such as Access 2000, SQL Server 7.5 and FoxPro. Visual Basic also supports both traditional procedure-oriented programming and the newer object-oriented programming (OOP). Visual Basic is one of the members of a group of software called Visual Studio. The other members of this group are Visual Studio Tools, Visual C++, Visual J++, Visual FoxPro and Visual InterDev. There are four versions of Visual Basicà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Working Model, Learning Edition, Professional Edition and Enterprise Edition. The Visual Basic environment is where users can create and test their projects. The Visual Basic environment consists of several windows such as: The Title bar- displays the projects name(Project1). The default project name is Project1. Subsequent projects are named Project2, Project3, etc. Besides the project name, the title bar also contains several icons. The buttons on to the right are the standard windows buttons that can use to minimize, restore or close the window. Menu Bar- has the usual menu items such as File, Edit, View, Project, Run and Tools. Tool Bar- contains several icons, each of which represents a command. These icons provide a shortcut to the most frequently used commands. Toolbox- Located at the left hand side of the of the main window, contains a set of icons, each of which represent control object or just control. Form window- The window at the center of the main screen is the Form window. This is where the user can design their application. When the user begins a project, Visual Basic gives a new form with the default form named Form1. These are the few items and tool featured in a Visual Basic environment. Question 1 Write a program to produce the following output: Main Menu For Loop While Loop Select your Choice: 1 Using For Loop to Display the pattern 1 22 333 Do you want to continue(Y/N)? Y Main Menu For Loop While Loop Select your Choice: 2 Using while Loop to Display the pattern 1 22 333 Do you want to continue(Y/N)? N Press any key to continue Output For Question 1 Module Module1 Sub Main() Dim i, j As Int32 Do Dim a As Integer Console.WriteLine(Main Menu) Console.WriteLine(1-For Loop) Console.WriteLine(2-While Loop) Console.WriteLine(Select Your Choice) a = Console.ReadLine() If a = 1 Then Dim k As Int32 = 1 Console.WriteLine(Using For Loop to Display the pattern) For i = 1 To 3 Console.WriteLine() For j = 1 To i Console.Write(k.ToString) Next j k += 1 Next i Dim b As Char Console.WriteLine(vbCrLf) Console.WriteLine(Do You Want To Continue (Y/N)?) b = Console.ReadLine() If (b = Y) Then Else End End If ElseIf (a = 2) Then Console.WriteLine(Using While Loop to Display the pattern) Console.WriteLine(vbCrLf) Dim counter As Integer = 1 While counter Console.WriteLine(StrDup(counter, CChar(counter.ToString))) counter += 1 End While Dim b As Char Console.WriteLine(vbCrLf) Console.WriteLine(Do You Want To Continue (Y/N)?) b = Console.ReadLine() If (b = N) Then End End If Else Console.WriteLine(Please key 1/2) End If Loop End Sub End Module Source Code For Question For the first question was done using if else statements to determine wheter to print out for loop or while loop by assigning conditions, for example a=1 for for loop and a=2 for while loop. The variable a is set with Dim As Integer meaning as assigned with 1 and 2. The for and while loop codes are above whitin the codition. For the Looping of the statement was done by using Do loop, that the Menu can loop again. Using Console.WriteLine to print the output and using Console.ReadLine for input, Console.WriteLine(vbCrLf) for new line. Dim Char is to represent a single character in this case either using Y or N option to continue with the program. Dim Integer to represent number without decimal place. Question 2 The numbers of calories burned per hour cycling, jogging, and swimming are 200, 475, and 275, respectively. A person loses 1 pound of weight for each 3500 calories burned. Write a program that allows the user to input the number of hours spent at each activity and then calculates the number of pounds worked off. The Output For Question 2 The following image above is my output for question 2. This was done using Microsoft Visual.NET 2003. Briefly explaining the element used to create this was Label, text, Radiobuttons and a button. So this was to test the number of hours that the user has done using the following 3 choices above. So after the selection of one of the radiobuttons the output will be displayed in pounds, as where the number of pounds shed by the user. The following interaction was done by the button. The codes are set in the button so when the user click the result is displayed. For more detailed explanation of the code is below. The codes for the button for Question 2 Using Dim as Double enables the user to have decimal places compared to integer/ Using 3 variables a, b, and c respectively to represent each of following hours cycling, jogging and swimming. Using the if statements to achieve the result for the corresponding activities for each. The raddiobuttons are the following activities that represents cycling, jogging and swimming. The value of each is multiplied by the value given by the question as 200,475 and 275 and then each of them are divide by the number of calories which is 3500. Conclusion A Visual Basic application or project typically requires some input, processing and output. For interaction with the user the project will typically use several controls such as forms, text and picture boxes, labels and command buttons. Using these control, the user can control the program execution. Planning a Visual Basic project basically involves the following steps: Plan the project. This involves determining what to do. Designing the User Interface. The interface is the most visible part of the project. It is used to interact with the system. The user can determine the controls ( e.g., command buttons, text boxes, labels) that are needed to enter data (input), to display results of computation (output), and to control the program execution (processing). Set the properties of the controls. Determine the controls that the user will need or their project and set the properties (e.g., appearance, name, caption, color) for each of the controls used. Write the code (program). The code represents the action that must take when the user clicks on a Command button. Clicking a Command button is called an event and the code represents a response to that event Test and debug the code. This is done to ensure that the program works correctly These steps help the user to analyze first, plan using draft and then apply his information gathered into motion. These steps are a require that every programmer must do in order to achieve full satisfaction of their program.

Analyses of Short Stories Essay -- Nathaniel Hawthorne Kate Chopin Ess

Analyses of Short Stories Nathaniel Hawthorne, â€Å"Young Goodman Brown† Goodman Brown was not asleep in this short story. As I read, I believed that Goodman did indeed meet the devil in the forest. If he had indeed dreamt about the trip he was sent on and meeting the devil, I think his nervousness would have been described in more detail then it was. Concentrating more on the anxiety he was feeling would have led the reader to believe that the events were not real. I also saw this story as an allegory. I saw the allegory after reading the story two times. I think it is centered on Goodman Brown having a bumpy past and that he wants to go beyond his past and reach heaven. The characters names also show the religious allegory in the story. The names Goodman and Faith are used and the characters are then soon faced with terrifying evil. I think that Goodman Brown and his wife, Faith’s names symbolize that they are good, religious people and that Goodman is making up everyone being evil in his head. I found an essay by Alexa Carlson that described the symbolism in light vs. dark, forest vs. town, nature vs. human, and fantasy vs. reality. In her paper, Essay #1: Young Goodman Brown, she states that â€Å"†¦fantasy vs. reality are employed to reinforce the idea that good and evil have been set up as strict categories into which no one, not even the religious figures of the community, fit neatly.† As she later writes, if Hawthorne was apprehensive about â€Å"what he considers right and wrong in terms of human behavior, I think he would have spend more time building up his tragic end.† â€Å"Young Goodman Brown† was a pretty sad story because he was happy with all the locals and his faith until the trip came into Goodman Brown’s life. Goodman is pure going into the forest, but in a sense comes out of the forest somewhat evil. He comes back thinking he is better than everyone else and ends up isolating himself to lead a very lonely life. Source: Carlson, Alexa. Essay #1: Young Goodman Brown. www.crwl.utexas.edu Nathaniel Hawthorne, â€Å"My Kinsman, Major Molineaux† I read some information about Nathaniel Hawthorne’s life and then thinking back to this story, I see his life somewhat reflected in the main character. I saw him relating himself to Robin and parallel the emotions and similarities to that of his own life. I remember reading that Ha... ...d have smothered him to death. Sure that may be hard to believe but that was the only reasonable explanation I could come up with. I saw foreshadowing in the story that brought me to believe that she smothered him. Miles was banished from school because of things he said. I assumed it was dirty language and he passed those words onto other children, including his own sister. Flora probably did not learn the appalling language from the ghost of Miss Jessel but most likely from her own brother. In the article from www.gradesaver.com, they talk about the governess’ reaction to Miles and his confession. The governess was given adequate information about why Miles was expelled from school. They also talk about how â€Å"the governess’s behavior is having a dangerous effect on the boy. The sweating, hard breathing, and weakness she describes begin even before she tells the boy that Quint is present.† The governess seems to get even more upset and then begins s haking the boy. I liked this book more than I thought that I would. I was not expecting it to a ghost story at all and was really quite surprised by the ending. Source: www.gradesaver.com/ClassicNote/screw/about.html

Harmful Chemicals in Cosmetics Essay -- Toxic Chemicals in Cosmetics

Although cosmetics became widely popular in the 1900s, tombs from 3100 B.C. have revealed that makeup originated in the first Egyptian Dynasty ("The History of Makeup", 1). Researchers found that these cosmetics contained ingredients that ranged from lead to cat dung; both of which are toxic. The use of toxic chemicals in cosmetics, such as coal tar, negatively impacts a person's health. Cosmetic companies put consumers' health at risk due to the use of toxic chemicals, marketing ploys and failure to properly regulate their own products and the chemicals they contain. While cosmetics pose dangerous risks to the human body in general, pregnant women and their fetus are especially vulnerable to the consequences of being exposed to these toxins. If some women are not willing to give up their cosmetics during pregnancy, the ingredients in makeup can be lethal to the fetus. Nail polishes and hair sprays contain substances called phthalates, which is more commonly known as a plasticizer and can be found in the material to make rain coats and garden hoses, and its purpose is to make plastic more flexible but still strong (â€Å"Controversy Over Phthalates in Cosmetics† par 1) .When phthalates are absorbed into the skin, they could harm the fetus and, in baby boys, they could cause irregular genitals. Another ingredient, methylisothiazoline (or MIT for short), can be found in everyday shampoos and body washes such as Head and Shoulders, Suave and Pantene Hair conditioner, products a pregnant woman may very well use, and tests have shown that exposure to this ingredient could cause abnormal brain development in the fetus ("Popular shampoos contain toxic chemicals linked to nerve damage" par 2). However, these chemicals can cause health defi... ...rench, Christy T. "History of Makeup" (2004): Authors Den. 20, September, 2011. Web. Mercola, Joseph. "How Dangerous are Your Cosmetics?" (2011): Mercola.com: Take Control of Your Health. Web. 2 Feb. 2015. Reid, Brian. "Controversy Over Phthalates in Cosmetics" (2011): Our Stolen Future. Web. 2 Feb. 2015. Rudow, Barbara. Turning Green (2008): California: Scobre Press Corporation. Pages 3, 14, 33. Print. The Campaign for Safe Cosmetics (2011): Environmental Working Group. Web. 2 Feb. 2015. â€Å"Coal Tar Hair Dyes: Hair Care Cautions† (2011): Hairfinder: Hair Styles, Hair Care & Fashion. Web. 2 Feb. 2015. "Cosmetic and Personal Care Products Can be Cancer Risks" (2011): Cancer Prevention Coalition. Web. 2 Feb. 2015. "Natural and Organic Beauty Products: Behind the Facade" (2011): Articlesbase: Free Online Articles Directory. Web. 2 Feb. 2015.

Economic Integration of the Baltic Sea Region and the Passenger Traffic Issues :: Europe Airlines Economics Economy Essays

Economic Integration of the Baltic Sea Region and the Passenger Traffic Issues Table of Contents: I. Introduction 2 II. Goals of Economic Integration 2 III. VASAB 2010 3 IV. Ãâ€"resund vs. Helsinki - Tallinn Link 4 V. Aviation Development in Scandinavia 7 VI. Conclusion 10 VII. Works Cited 11 I. Introduction Economic integration is not an easy task. This is clearly evident by its nature, and even more so a problem in the Baltic region where there have been so many political changes in recent history. We have seen the formation of three newly re-independent states, Estonia, Latvia, and Lithuania. East and West Germany have been reunited to form a new nation. The communist governments of the former Soviet Bloc have been replaced by democracy. These changes have made economic integration not only more difficult, but also to some degree more necessary.

Solar Panels vs. Trees

Solar Panels Vs. Trees Many consumers have several questions if whether or not if their neighbors can block access to their solar panels with shading. In the case of Solar vs. Trees, the trees are the ones that block the solar panels from direct sunlight. Both these men are environmentally friendly. â€Å"In terms of loving the environment it seems that neither one can top the other. † (NPR 62) When it comes to the decision of cutting down trees to get sunlight for solar panels, which one seems to have the upper hand in this situation? I believe Mr. Treanor should have the upper hand in this situation involving his trees and Mr.Vargus’s solar panel installation. Mr. Treanor trees had been planted first and Mr. Vargus did not seem to mention the fact that the trees were interrupting the growth of the corn he had planted. There are several reason as to why Mr. Vargus is wrong in filing the lawsuit against Mr. Treanor. Mr. Vargus used his knowledge of the Solar Shade Act a fter the matter of knowing his neighbor’s trees were casting a long shadow over his property. Mr. Vargus never informed Mr. Treanor of his findings. It was only after the tree had grown to its full height that Mr.Vargus installed the solar panels that he offered Mr. Treanor that he would pay for the tree to be cut down himself. Since Mr. Treanor planted the redwood trees first. The one immense mistake he made was the fact that he did not do his research so that he could be well acquainted with the redwood trees and to see precisely how tall the redwood trees grow and the environment that they need to be grown in. He also did not consider any of the risk factors that could possibly occur when planting a redwood and living in one of the areas that has a high risk of earthquake.For someone that has never seen a redwood tree, it can be larger than life. The average redwood tree can amount up to three hundred and seventy five feet tall. These trees have been present before man him self came on earth. If a live redwood were to fall over it will continue to grow. At that point if the tree that has fallen over has not been disturbed will continue to grow and produce even more redwoods trees. First of all, redwoods depend on 30 percent of fog to water their every need. The fog is absorbed directly into leaves and all the way down to their roots.Living in certain parts of California especially one of them being Santa Clara means we hardly receive any of this fog except our large amounts of sunshine. Living in Santa Clara also means you live close to the San Andres fault line. If an earthquake were to occur the redwood tree that Mr. Treanor planted could easily break from the ground and fall onto one of his neighbors houses. Therefore producing a larger amount of redwoods. Although there is cause for several complications, redwoods are of necessity in our environment. Originally Redwoods covered 2 million acres in the forest.Today there is about 117,000 acres left. â€Å"There is an urgent need to restore these damaged lands so they will once again resemble majestic ancient forests and provide homes for animals that rely on them. (All About Redwoods)† Even though Mr. Treanor did not take the necessary precautions he should have, Mr. Vargus should have brought his discovery to Mr. Treanor and proceed to develop a plan in which they both would have come to a compromise. When Mr. Vargus first attempted to plant his corn he knew he needed sunlight to ensure its growth. Mr.Vargus planted his corn closet to the fence line where the shade was more evident. Mr. Vargus knew at that moment that the corn that he planted would not grow due to the amount of shade that was covering the side of his house. At that precise moment he was indifferent of the situation with the growth of Mr. Treanors trees. It was later that Mr. Vargus spent thousands of dollars to install the solar panels after the fact of the matter that he was well informed of the Solar Shade/Rights Act. This act was created to perform a solar access structure.This law that included security was â€Å"to allow sunlight and prevent shading of systems and to limit the ability homeowner associations and governments† from solar energy resources. Mr. Vargus did offer to pay $10,000 to have the trees cut down. He was also well informed of the Solar Shade Act law and took advantage of the situation. What he did not take into consideration was the fact that trees one; two and three had been planted before the installment of his solar energy system. They had been there before he made his attempt to plant his corn plant.The Solar Shade Act was to provide limited protection to solar energy owners from shading that has been caused by any other resources. This law was to prevent property owners from allowing a blocking to their solar energy system prior installment. Resources planted after prior installment was and should to be removed. Shading is only allowed to block 10 percent of the solar energy systems on a neighboring property during certain hours. This applies to existing or newly planted trees that do not cast an overlooking shadow within the first year f installation. The Solar Rights Act allows us to balance the essential needs of each individual solar system owner along with other property owners by allowing the development of solar access rights. The SRA limits its conditions and restrictions that are enforced by homeowners and local government agencies on solar installations. The also creates legal rights to solar interest and requires local agencies to help preserve the cooling and heating opportunities in developing new projects.The California Solar Rights Act of  1978 does not necessarily bar reasonable restrictions  on solar installations, but it does establish its legal right to exercise a solar convenience. Which defines that energy systems are met with its requirements. It is to also control the government ordinances that w ould confine solar energy systems. The California Solar Shade Control Act was passed in the late 1970’s after â€Å"the oil crisis and lines at the gas stations† (NBR 62) made an impact on lawmakers and made them aware of the importance of alternative energy use.In the result of the oil crisis there were many states that adopted laws to encourage and promote renewable energy resources, which incorporated solar energy. In the recent years there has been a large amount of renewed energy. Many homes today have solar panels installed. There are more than 60 million Americans that are limited to the growth of solar energy use which bring about the Solar Shade Act and making it the most popular in homeownership. These laws have been in place for more than 30 years.The Solar Rights Act fought to promote and support the wide-ranging use of solar energy systems and to defend and help aid the right to use to the sunlight, which is an essential component to operate our solar ener gy systems. Even though the law is more than 30 years old, the Solar Rights Act is a large contributory factor that plays a significant role to California's strong policy commitment to solar energy, and it is also the foundation for the act that is of relevance to all of us today and helps to continue its support for California’s solar energy programs.

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