Ginny is an accountant by trade, she paid $1,000 each year to join as CPA member....

Ginny is an accountant by trade, she paid $1,000 each year to join as CPA
member. She also has a knack for programming; hence she also joins the
Computer Associates membership for $500 per year as she planned to find a new
career as a programmer. Discuss her eligibility whether she can deduct both
membership fees from her assessable income!

Book: Taxation law

Expert Solution

In this case Ginny will be eligible to deduct the $1,000 that she has paid each year to join as CPA
member.

However she will not be eligible to deduct $500 that she has paid per year towards the Computer Associates membership.

This is because as per IRS’s guidelines dues paid to a professional association are tax-deductible if membership in the association assists you in performing your job. Here Ginny is a practicing accountant and hence it can be said that her CPA membership is allowing her to get important information on new accounting related topics and new developments. Ginny is not yet a programmer and she is merely planning to find a new career as a programmer. Hence programming is not part of her profession yet and hence she will not be allowed to deduct the $500 fees paid for Computer Associates membership.

ekkarill92 answered 2 years ago

For each of the following cases indicate if the action by a member CPA is a...

For each of the following cases indicate if the action by a member CPA is a violation of the AICPA Code of Professional Conduct and cite the relevant rule. For this question, for the first blank, answer Yes OR No as to whether the statement violates the AICPA Code of Professional Conduct. Then for the second blank, cite the relevant rule. You may cite the relevant rule by number or by briefly describing the rule. 1. Disclosed client information to...

Felicia, a certified public accountant (CPA), runs her own consulting firm. Last year, she spent $24,510...

Felicia, a certified public accountant (CPA), runs her own consulting firm. Last year, she spent $24,510 on student employees, plus had another $81,000 in administrative expenses (e.g. utilities, insurance, rent). She pays herself a salary of $50,000. Because she is a CPA, Felicia could be employed alternatively as amid-level manager in a large accounting firm, making a salary of $96,780 a year. Last year, Felicia’s accounting costs were (Enter your response as an integer.) Last year, Felicia's economic costs were...

1) You are a CPA employed as an accountant for a large manufacturing company. Each month,...

1) You are a CPA employed as an accountant for a large manufacturing company. Each month, you assist in preparing the company’s actual monthly GAAP financial statements. Your boss tells you that “one way or the other, you must make the actual month’s GAAP income exceed the month’s budgeted income.” The way you are told to do this is to prepare the following journal entry in an amount which causes actual income to exceed budgeted income: Dr. Inventory Cr....

Ginny Baca is a 46-year-old nurse who recently had gastric bypass surgery. She is 65 inches...

Ginny Baca is a 46-year-old nurse who recently had gastric bypass surgery. She is 65 inches tall and weighed 302 pounds prior to surgery. She has lost 15 pounds in the month following her surgery and has advanced her post-surgery diet from clear liquids to solid foods. At her post-surgery visit, she is excited about her weight loss but also worried that she is not able to drink fluids like she used to. She has had two episodes of dumping...

Your sister will start college exactly 1 year from now and she wants to join you...

Your sister will start college exactly 1 year from now and she wants to join you at Marquette University. Marquette University offers a couple of payment plans for the tuition fee. Flexible Plan: Pay once a year but the tuition will increase at 5% per year (which is much lower than other schools). The first payment due at the very first day of school. This year, the tuition is $30,000. Convenient Plan: Lock in by paying a lump sum of...

A 5-year bond with face value $1,000 (paid at maturity) and coupon rate 5% (coupon paid...

A 5-year bond with face value $1,000 (paid at maturity) and coupon rate 5% (coupon paid in arrears annually) has yield-to-maturity 4.5%. What is the convexity of the bond?

A 30-year loan of 1,000 is repaid with payments at the end of each year. Each...

A 30-year loan of 1,000 is repaid with payments at the end of each year. Each of the first ten payments equals the amount of interest due. Each of the next ten payments equals 150% of the amount of interst due. Each of the last ten payments is X. The lender charges interest at an annual effective rate of 10%. Calculate X.

Mary’s AGI for the year is $30,000. She paid the following amounts during the current year:...

Mary’s AGI for the year is $30,000. She paid the following amounts during the current year: Amount Purpose $2,500 Interest on $100,000 mortgage to acquire personal residence 550 Points paid to obtain the mortgage 850 Interest on auto loan (auto is used 100% for personal purposes) Mary’s current year interest itemized deduction after any applicable floor is: a. $3,900. b. $3,350. c. $3,050. d. $2,500. e. none of the above. 2. Jon’s AGI for the year is $40,000....

Although Goldman Sachs paid Heather $90,000.00 per year, she was not satisfied with her job. She...

Although Goldman Sachs paid Heather $90,000.00 per year, she was not satisfied with her job. She had loved going white-water rafting and skiing with her family in Utah since she was a little girl. So last year, she decided to open her own business: Family Adventures. During the summer, she takes families on different white-water trips, and in the winter, she leads clients on skiing trips. To start her business, Heather borrowed $100,000 from a bank and used $70,000.00 of...

A 30 year corporate bond with a face amount of $1,000 and a 5.6% coupon (paid...

A 30 year corporate bond with a face amount of $1,000 and a 5.6% coupon (paid semi-annually) was issued 15 years ago. Given a 30 BPS, what is its effective duration? Assume the current yield to maturity is 6.0%. Show all work.

Question