Jay and Bevonce come to you for tax advice. Jay is a self-employed consultant. Last year,...

 

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Jay and Bevonce come to you for tax advice. Jay is a self-employed consultant. Last year, Jay's business generated revenue of $200,000 and incurred expenses of $10,000 for rent and utilities for an office. Jay also spent $2,000 purchasing depreciable equipment used in the business and paid a part-time assistant $10,000 for work performed during the year. He hired Greg to help him with his consulting practice and paid him $20,000 for his work during the year. Jay Jay paid $3,000 for his own health insurance and $500 for term life insurance. He did not contribute to any retirement plans. Bevonce works for Disney Travels and travels for her job and was reimbursed by Disney $3,000 for her travel expenses. Beyonce spent $4,000 on other employee business expense that was not reimbursed by her employer. Disney pays Beyonce a salary of $100,000, $20,000 for her health insurance and provided $60,000 of group term life insurance to each of its employees. Bevonce contributes out of her own money $5,000 to a traditional IRA. You are a highly priced accountant. Jay and Beyonce have come to you for tax advice and would like to know the tax ramifications of each of the events and transactions listed above. Jay and Bevonce come to you for tax advice. Jay is a self-employed consultant. Last year, Jay's business generated revenue of $200,000 and incurred expenses of $10,000 for rent and utilities for an office. Jay also spent $2,000 purchasing depreciable equipment used in the business and paid a part-time assistant $10,000 for work performed during the year. He hired Greg to help him with his consulting practice and paid him $20,000 for his work during the year. Jay Jay paid $3,000 for his own health insurance and $500 for term life insurance. He did not contribute to any retirement plans. Bevonce works for Disney Travels and travels for her job and was reimbursed by Disney $3,000 for her travel expenses. Beyonce spent $4,000 on other employee business expense that was not reimbursed by her employer. Disney pays Beyonce a salary of $100,000, $20,000 for her health insurance and provided $60,000 of group term life insurance to each of its employees. Bevonce contributes out of her own money $5,000 to a traditional IRA. You are a highly priced accountant. Jay and Beyonce have come to you for tax advice and would like to know the tax ramifications of each of the events and transactions listed above.