Question
In: Accounting
B is single and reports the following items of income and deductions for the current year:...
B is single and reports the following items of income and
deductions for the current year:
Salary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . $ 50,000
Net long-term capital gain on sale of investment property. . . . .
. . . 200,000
Medical expenses. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 17,500
Casualty loss. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 4,500
State and local income taxes. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 15,000
Real estate taxes. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 20,000
Charitable contributions (all cash). . . . . . . . . . . . . . . .
. . . . . . . . . . . 15,000
Interest on home mortgage. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 12,000
Interest on investment loans (unimproved real property) . . . . . .
. . . 10,000
B made the election to treat $10,000 of the net long-term capital
gain as investment income. The only additional transaction during
the year was the exercise of an incentive stock option of her
employer’s stock at an option price of $12,000 when the stock was
worth $100,000. Compute B’s tax liability and AMT, if any.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
During the current year, Donna, a single taxpayer (divorced in 2019), reports the following items of...
During the current year, Donna, a single taxpayer (divorced in
2019), reports the following items of income and expenses:
Income:
Salary $86,000
Municipal bond interest 1,300
Bank account interest 2,300
Alimony received 24,000
Capital gain on an asset held less than one year 3,000
Rental income from residential rental house 12,500
Expenses/losses:
Interest on principal residence 8,000
Real estate taxes on principal residence 1,000
Capital loss on an asset held less than one year 7,000
Expenses related to rental property...
During the current year, Donna, a single taxpayer (divorced in 2019), reports the following items of...
During the current year, Donna, a single taxpayer (divorced in
2019), reports the following items of income and expenses:
Income:
Salary
$86,000
Municipal bond
interest
1,300
Bank account
interest
2,300
Alimony
received
24,000
Capital gain on an asset held
less than one
year
3,000
Rental income from residential
rental
house
12,500
Expenses/losses:
Interest on principal
residence
8,000
Real estate taxes on principal
residence
1,000
Capital loss on an asset held
less...
Tax Rates. Lillian, a single taxpayer, had the following income and deductions for the tax year...
Tax Rates. Lillian, a single taxpayer, had the following income
and deductions for the
tax year 2018:
INCOME: Salary $ 90,000
Business Income 24,000
Interest income from taxable bonds 8,000
Tax-exempt bond interest 4,100
TOTAL INCOME 126,100
DEDUCTIONS:
Business expenses $ 9,000
Itemized deductions 15,000
TOTAL DEDUCTIONS 24,000
a. Compute Lillian’s taxable income and federal tax liability
for 2018 (round to dollars).
b. Compute Lillian’s marginal, average, and effective tax
rates.
c. For tax planning purposes, which of the three...
1. The following three single taxpayers have income and deductions as follows: &
1.
The following three single taxpayers have income and deductions
as follows:
Ahmed Baker Chin
Gross
Income $
80,000 $
80,000 $
80,000
Deductions For AGI 14,000
7,000 0
Itemized
Deductions
0 7,000 14,000
Qualified Business
Income Deduction 0 2,000 10,000
What is the Ahmed taxable income?
2.What is the Baker taxable income?
3.What is the Chin taxable income?
Bruce, who is single, had the following items for the current year: Salary of $85,000. Loss...
Bruce, who is single, had the following items for the current
year:
Salary of $85,000.
Loss of $75,000 on the sale of § 1244 stock acquired three
years earlier.
Determine Bruce’s AGI for the current year.
$27,000
$10,000
$85,000
$32,000
For the current year (Y-4) Fabco has gross income of $100,000 and deductions of $110,000 for...
For the current year (Y-4) Fabco has gross income of $100,000
and deductions of $110,000 for regular tax purposes. Three years
ago (T-1) taxable income was $5,000. Two years ago (Y-2) taxable
income was $10,000. Last year (Y-3) taxable income was $300,000.
Next year (Y-5) it is anticipated that taxable income will be
$275,000. Assume alternative minimum tax does not apply.
What are the tax consequences to Fabco in the current year
(Y-4)?
What alternatives does Fabco have?
Bullwinkle Corporation, an S corporation, reports the following results for the current year: Ordinary income =...
Bullwinkle Corporation, an S corporation, reports the following
results for the current year:
Ordinary income = $40,000
Long-term capital gain= $18,000
Section 1231 gain = $8,000
Short-term capital loss= $14,000
Bullwinkle's AAA and accumulated E&P balances at the
beginning of the year are $40,000 and $30,000, respectively.
Bullwinkle made a $70,000 cash distribution to its sole
shareholder, Maryann, on June 1 and a second $70,000 cash
distribution on December 1. Maryann's basis in her Bullwinkle
Corporation stock on January 1...
Yanni, a single individual, reports the following information for the tax year. Salary $113,800 State income...
Yanni, a single individual, reports the following information
for the tax year.
Salary
$113,800
State income taxes
11,380
Mortgage interest expense
10,242
Charitable contributions
2,276
Interest income
1,707
Personal exemption
4,050
Click here to access the exemption table. If required, round
your answers to the nearest dollar.
Compute the following for Yanni.
a. Regular taxable income:
$
b. AMT base:
$
c. Tentative minimum tax:
$
List four items that are considered deductions for AGI(Adjusted Gross Income) - when listing these items...
List four items that are considered deductions for
AGI(Adjusted Gross Income) - when listing these items - state
whether they are deducted on the Form 1040 or on a supporting form
or schedule.
What are considered Educational Related Expenses as
they relate to deductions for AGI(Adjusted Gross Income)
Emma, a U.S. resident, received the following income items for the current tax year. Determine the...
Emma, a U.S. resident, received the following income items for
the current tax year. Determine the amount of U.S.-Source Income
and Foreign-Source Income for each income item.
If an amount is zero, enter"0". If required, round your answer
to the nearest dollar.
Transaction U.S.-Source Income Foreign-Source Income
a. $600 interest from a savings account at a Florida bank. $
$
b. $5,000 dividend from U.S. Flower Company, a U.S.
corporation that operates solely in the eastern United States. $
$...
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