All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question

Search
Sign In
Register

study help
business
federal taxation 2019

Questions and Answers of Federal Taxation 2019

What are the recapture rules when an involuntary conversion occurs with nonrecognition of some of the gain?
Char Co.'s uses financial accounting practices/methods for tax purposes. Is this practice an automatic defense against a challenge by the IRS that some (all) such practices do not clearly reflect
Why should an individual not use an installment sale as opposed to a cash sale?
Spancer Co. is in the construction business. Can it use the completed contract method to account for its long-term contracts?
How are liabilities in excess of basis treated in an installment sale?
Which entities utilize deductions for adjusted gross income and deductions from adjusted gross income? Why do only these entities use said deductions?
A partnership is owned 62 percent by a corporation and 38 percent by an individual. The corporation has a fiscal year ending on September 30. The individual is a calendar- year taxpayer. What is the
An S corporation wishes to adopt a fiscal year ending on August 31 because that is the end of its model year. Will the S corporation be given permission to adopt the fiscal year?
X Corporation was formed and began operations on September 1 of this year. X Corporation expects to have taxable income of $25,000 each quarter of operations for the first two years. X Corporation is
Lyle Inc. is a cash-basis, calendar-year taxpayer.In 2019, it changes to the accrual method of accounting, Its 2019 income computed under the accrual method is $75,000. The following information also
The Light Record Corporation has been on the calendar year since its inception five years ago. It wishes to change to an April 30 natural business year. For 2019, the calendar year of proposed
Hal is single and in 2019 he obtained IRS permission to change from the calendar year to a fiscal year ended August 31, 2019. Hal earned $92,000 through August 31, 2019 and had $14,000 in itemized
A partnership has two equal calendar-year partners and is switching from a fiscal year ending on June 30 to a calendar year. If the partnership has $40,000 in net income resulting from the short
What are the accounting period options for the following businesses?a. Ccorporation starting business on March 11b. Sole proprietorship starting business on May 27 with a proprietor on the
Wagner Co. is a cash-basis, calendar-year taxpayer. On August 1, 2019, it paid an insurance premium of $4,800 for coverage from August 1, 2019 to July 31, 2020. What is the largest deduction Wagner
Assume the same facts as the problem above except the premium is for coverage from August 1, 2019 to July 31, 2021. What is the largest deduction Wagner Co. can take in 2019?Data from in problem
Jennifer uses the cash method. Which of the following transactions result in gross income in the current year?a. Car, worth $7,000, received as a consulting feeb. $500 of interest credited to her
Jen Company decided to change its method of accounting from the cash basis to the accrual basis in 2019. Its taxable income for 2019 under the accrual basis was $250,000.It determined that the
Brice sells a piece of raw land with a basis of $10,000 which he has owned for years as an investment. What are the tax consequences to Brice, a cash-basis taxpayer, for the following consideration
Smith Inc. discovered it had made several math errors during 2019. It wants to correct the errors and is unsure as to whether this would qualify as a major change in accounting method requiring IRS
Ludlow Inc. started business in 2018. It uses the simplified dollar-value LIFO inventory method. Ending inventories at actual prices are as follows:The price index in 2018, 2019 and 2020 is 120%,
Berry Co. started business in 2018. Its ending inventory was $150,000 at base-period prices.It uses the simplified dollar-value LIFO inventory method and the price index was 130% in 2018. Its ending
Wash Company sells washing machines. On January 1, 2019, it had 20 units in inventory, valued at $400 per unit. During 2019, it sold 200 units at $700 per machine. Wash Company purchased 190 units
Mill Co., a calendar-year manufacturer, which uses the FIFO inventory method, previously allocated production costs to inventory by use of a burden rate based on the ratios oft otal indirect
Sugarcane Company incurs handling costs totaling $15 million and purchasing costs of $4 million. Inventoriable general and administrative costs related to handling and purchasing totals $1 million.
X Company has four inventory items at year end. Inventory information (based on FIFO) is as follows:Determine X Company’s ending inventory using the lower-of-cost-or-market method. Item 1 2 3 Cost
Sam Co. sells a product whose cost (and sales price) has risen continually. This has produced increases in Sam Co.'s gross receipts and Sam Co. would like to use an inventory method that would
Falzone Inc. uses the dollar-value LIFO method to account for its inventory. Inventory on January 1, 2019, was $30,000 at base-year prices. Inventory on December 31, 2019, was $63,000 at actual
Mar Co. is a construction company. In 2019, it entered into a two-year contract to construct a building for $3,000,000. It estimated that actual costs will be $2,500,000. Actual costs in 2019 are
Steve sold for $200,000 his undivided onethird interest in an apartment building in which he had a $30,000 adjusted basis. The buyer put $40,000 down, assumed Steve's share of the mortgage, and
Do either of the transactions below qualify for installment reporting? If not, why not?a. Credit sales of dealer inventoryb. Credit sales of property not held as inventory
In 2019, Sally Morris, a single taxpayer, pays $3,000 of interest on qualified student loans. Her AGI is $40,000. What is her qualified student loan interest deduction in 2019?
Mike and Sally Card file a joint return for the 2019 tax year. Their adjusted gross income is$65,000 and they incur the following interest expenses:Investment income and related expenses amount to
The interest paid on Josephine Young's personal residence for the year 2019 totals$4,800; the interest paid on her personal credit card is $80; the interest paid on a note to the National Bank (44 of
Greg Grove pays $50,000 interest in 2019 on his mortgage on his principal residence. It has an interest rate of 4 percent and balance of $1,250,000 during the year. He took out the mortgage in 2018.
Elmore Eisner made the following contributions during the current tax year:a. Assuming Elmore’s adjusted gross income is $80,000, what is his charitable contribution deduction for the year and
Matilda Moore has $21,000 of investment interest expense and $7,000 of net investment income in 2019. How much of the investment interest expense is deductible for tax purposes in 2019?
On December 1, Raphael Renoir borrows $20,000 from the bank on a 15 percent, one-year business loan. Raphael prepays the interest of $3,000 at the time of the loan. What is the interest deduction
On December Bernie took out a 15-year loan for $300,000. He paid 2% in “points” in order to get the loan, or $6,000. This is essentially prepaid interest. If the loan is used to purchase his
Frank Freshman mailed a check for $200 on December 30, 2019, in part payment of a $350 pledge he made to State University on November 1. The University did not deposit the check until January 3,
Mark Moody has adjusted gross income of $50,000 for 2019. During the year, he gave his church $3,000 cash and land having a fair market value of $40,000 and a basis of $20,000. The land was held
Kearney Kramer donated to his church stock which he had held for five months. The stock had a fair market value of $1,000 at the time oft he gift, but had only cost Kearney $700.What is the amount
Jackie has QBI of $200,000 from an S corporation that paid her a total of $30,000 of W-2 wages and that has no qualified property. Jackie’s spouse has $60,000 of W-2 income, and Jackie and her
Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit (Ch. 9), and the mortgage is not over $750,000.
Larry Johnson, 45 and single, has the following income and deductions in 2019. Using the tax rate schedules rather than the tax tables, compute Larry’s tax owed or refund due for 2019.Assume
Larry and Donna are married. Donna has a qualified business that is not a specified service business. For the 2019 tax year, they file a joint return reporting taxable income of $335,000. In that tax
Mary Sage’s daughter has a serious medical problem. Mary, 36, must take her daughter to a distant city to be treated. Mary and her daughter stay for seven days to receive treatment. Mary incurs
Norma, a single taxpayer, had 2019 taxable income before the qualified business income deduction of $650,000, of which $500,000 was qualified business income earned through her sole proprietorship.
The following selected court cases have helped to shape the tax law in regard to travel expense deductions. Read the following cases and prepare a brief written abstract for each case.a. Burns v.
How are the various business credits reported on the tax return?
What buildings qualify for the rehabilitation credit?
How does the rehabilitation credit differ from the investment credit?
How does an investment credit affect the basis of an item purchased?
How will a premature disposal of investment credit property affect a taxpayer?
What happens to the basis of an asset that has a recapture of an investment credit?
Are taxpayers allowed a credit on the total expenditure for research?
What is the ceiling limitation for the general business credit?
When several years of general business credits are carried over to the present year which also has a general business credit, in what order are the credits taken?
What basic group of employees qualifies for the work opportunity credit?
Which nonrefundable credits if not used in the present year can be carried over to other years?
Is it possible for a taxpayer to have a credit for excess Social Security if the taxpayer worked for more than one employer and the total wages came to $38,000?
Describe the earned income credit.
Carlos Diego paid the following expenses during 2019:What is Carlos’s tax expense deduction for 2019? Property tax on real estate State sales tax Sales tax on purchase of automobile License plate
During the following years Adolpho T. (single) had (1) withheld, (2) paid (by check — presumably estimated tax payments or paid with the extension) and (3) received a refund of the following
In each of the following independent cases determine the amount of charitable contributions allowed the individual before consideration of any percentage limitations.a. Charlie Chubbs contributed an
Ralph Reeves gave some stock that he owned to charity. The stock had a FMV of $40,000 and a basis of $32,000. His adjusted gross income is $100,000. Determine the allowed charitable contribution
Jackson Jumper has owned a beach house for the last 20 years. In 2019, a hurricane destroyed his beach house and the beach was determined to be a federally declared disaster area. His adjusted basis
Sara's only source of income was wages of $6,000. She and her daughter live with her parents. The daughter is claimed as a dependent by the father. Is Sara eligible for the earned income credit?
Discuss the declaration of estimated tax filing requirements of individuals.
If a taxpayer does not file estimated taxes and is underpaid for the year, what penalty may be imposed?
What is a tax preference item?
When is it possible to have a tax preference for the alternative minimum tax if the taxpayer is using straight-line depreciation?
List the itemized deductions that are not allowed in the computation of alternative minimum taxable income.
When is interest deductible as an itemized deduction for income tax purposes but not allowed as an itemized deduction for the alternative minimum tax.
What items create the alternative minimum tax credit?
Compute the child and dependent care credit in each of the following independent cases:a. Jack and Jill Jones are married and file a joint return. Jill worked full time earning $20,000, while Jack
Frank and Emma Browne are both over 65 and file a joint return. Emma received $800 from Social Security benefits and Frank received$1,200 from railroad retirement benefits. In addition to the
A married couple with two children has earned income of $30,000 with no withholding.Assume they have a taxable income of $100, they paid $2,295 in FICA taxes, and they will receive an earned income
A married couple with two children has $16,000 of earned income. What is the amount of their child and family tax credit?
Fannie, a widow, lives in an apartment with her two minor children (ages 4 and 6) whom she supports. Fannie earns $35,000 during 2019. She uses the standard deduction.Calculate the amount, if any, of
Refer to the Pennsylvania Indemnity Co. case in a citator. What was the disposition of the case on appeal to the Supreme Court from the Court of Appeals?
A husband and wife who earned Box 5 Medicare wages of $175,000 and $125,000, respectively. Determine the amount of withholding for the Additional Medicare Tax and the amount of tax that they would
In 2019, Windsor Knott, an employee of the Victoria Tie Company, was seriously injured in the factory stockroom. He was hospitalized for 30 days and lost partial use of his left hand. During his
David and Renee Kimberly, ages 75 and 65, respectively, have the following sources of income:Their itemized deductions total $11,000.Compute their taxable income. Private pension receipts Social
Charles Adams, who is single, retired on March 3, 2019, at the age of 65. For the year 2019, he receives the following income:What is Charles' modified AGI? What amount, if any, of his Social
Felix Boots, a 35-year-old male, is vice president of the Kitty-Lit Pet Products Company and earns $50,000 per year. The company provides paid group-term life insurance of twice the officers'
A. Fluent, an investor in stocks and bonds, wanted to increase his portfolio but wanted to minimize his tax liability on the income from the bonds. He is presented with the following alternative
Norm and Pat, a married couple filing a joint return, have the following sources of income:Both Norm and Pat are over 65 years of age.Determine their taxable income. Wages Interest income Dividend
Ron and Gayle, both over 65 years of age, have the following sources of income:Ron and Gayle have itemized deductions of $16,000. Compute their taxable income. Consulting income interest income
Robert Provider purchases a joint and survivor annuity providing for payments of$200 per month for his life and upon his death for his wife, Robin, for the remainder of her life. As of the annuity
Don Smith's wife died in January while still employed and, as her beneficiary, he began receiving an annuity of $147 per month. There was no investment in the contract after June 30, 2013. The
Beth, who is single, redeems her Series EE bonds. She receives $12,000, consisting of $8,000 principal and $4,000 interest. Beth's qualified educational expenses total $16,500. Further, Beth's
Robert Careless was injured while working on the production line on July 8, 2019. He received the following payments as a result of his serious injury:During 2019, Robert earned $16,000 in wages. How
Roger Corby, a student, was employed seven nights a week at the Campus Inn as a desk clerk. He was required to be on duty from 11 p.m. to 6 a.m. and on call at various other hours, although he was
Ms. Santana is single and over 65 years old.She received the following income in 2019:She did not have any adjustments to income.What is the taxable amount of Ms. Santana’s Social
On January 4, 2019, Ralph Stuart, an employee of Hard Manufacturing Inc., enrolled for the spring semester at State University where he is a candidate for an undergraduate degree in accounting. His
Mr. Leff received a $6,200 grant from a local university for the fall of 2019, Mr. Leff was a candidate for a degree, and was required to be a research assistant, for which services he received
Jacob is 69 years old and elects group-term life insurance of $200,000. The employer pays 60 percent of the cost of the life insurance plan; and employees pay at a uniform rate of $0.35 per $1,000
Ilana is a successful sole proprietor who owns a cosmetic store. She was injured in a car accident. The driver of the other car was found to be at fault for the accident. Ilana received the following
Rodney and Alice Jones have three small children, ranging in age from 5 to 10. One child is blind and needs special care. Rodney works as an accountant for a large CPA firm and has gross income of

Showing 1400 - 1500 of 2322

First
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Last

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Company Info

Security
Copyrights
Privacy Policy
Terms & Condition
SolutionInn Fee
Scholarship

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Copyright © 2024 SolutionInn All Rights Reserved.

Get the SolutionInn - Study Help App