Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own
and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994
Form 1040.
Tom's 1994 wages were $53,000. In addition, Tom's employer provided group-term life insurance on
Tom's life in excess of $50,000. The value of such excess coverage was $2,000.
- A. $1,250
- B. $900
- C. $55,000
- D. $500
- E. $2,000
- F. $0
- G. $1,000
- H. $75,000
- I. $3,000
- J. $1,500
- K. $2,500
- L. $25,000
- M. $50,000
- N. $1,300
- O. $10,000
Reveal Solution
Discussion
Correct Answer: F 🗳️
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