Question
In: Accounting
This assignment was locked Feb 27 at 11:59pm. A. There are three types of taxable income;...
This
assignment was locked Feb 27 at 11:59pm.
A.
There are three types of taxable income; 1. active, 2. portfolio, 3. passive. Describe each (in your own words) and make sure you understand the tax implications of these incomes.
B.
Debra Ferguson received the items and amounts of income shown below during 2016. Help her calculate, (a) her gross income and (b) that portion (dollar amount) of her income that is tax exempt.
Salary $33,500
Dividends 800
Gift from mother 500
Child support from ex-husband 3,600
Interest on savings account 250
Rent 900
Loan from bank 2000
Interest on state government bonds 300
Solutions
Expert Solution
Answer 1-A
Active income = for the purpose of taxation, active income is referred as an income earned from business activities or performing a service. However, it should all the requirements of material participation set by the IRS
Portfolio income = portfolio income is an income neither earned through passive investment nor from the conduct of regular business activities. It includes income that is earned from investments such as dividends, interest, and capital gains, etc.
Passive income = passive income is referred as effortless income. It means much efforts are not made to earn passive income. There is regular cash inflow, requiring minimum efforts to maintain it.
Answer 1-b
Gross income
Salary 33500
+ Dividends 800
+ interest on savings account 250
+ rental income 900
Total gross income 35450
Tax-exempt income
Gift from mother of 500
+ Child support from ex-husband 3600
+ loan from bank 2000
+ interest on state government bonds 300
Total tax exempt income tax 6450
ekkarill92 answered 1 year agoRelated Solutions
CSE/EEE 230 Assignment 4 Fall 2019 Due Sept 30 (11:59PM) In this assignment, you are to...
CSE/EEE 230 Assignment 4
Fall 2019
Due Sept 30 (11:59PM)
In this assignment, you are to complete a MIPS program so it will
perform the required tasks. The main function of the code is
provided. Do not change the code in the main function. There is a
loop in the main function.
You are to complete the program by writing two functions. Pay
particular attention to the purpose of each function and how the
parameters and return value are to...
A. There are three types of taxable income; 1. active, 2. portfolio, 3. passive. Describe each (in...
A.
There are three types of taxable income; 1. active, 2.
portfolio, 3. passive. Describe each (in
your own words) and make sure you understand the tax
implications of these incomes.
B.
Debra Ferguson received the items and amounts of income shown
below during 2016. Help her calculate, (a) her
gross income and (b) that portion (dollar
amount) of her income that is tax
exempt.
Salary
$33,500
Dividends
800
Gift from
mother
500
Child support from
ex-husband
3,600
Interest on savings...
11. The following differences enter into the reconciliation of financial income and taxable income of Abbott...
11. The following differences enter into the reconciliation of
financial income and taxable income of Abbott Company for the year
ended December 31, 2020, its first year of operations. The enacted
income tax rate is 20% for all years. Pretax accounting income
$800,000 Excess tax depreciation (480,000) Litigation accrual
70,000 Unearned rent revenue deferred on the books but
appropriately recognized in taxable income 60,000 Interest income
from New York municipal bonds (20,000) Taxable income $430,000
1. Excess tax depreciation will...
27.) Compute the taxable income for 2018 in each of the following independent situations: a.) Drew...
27.) Compute the taxable income for 2018 in each of the
following independent situations:
a.) Drew and Meg ages, 40 and 41, respectively are married and
file a joint return. In addition to four dependent children, they
have AGI 125,000 and itemized deductions of 27,000.
b.)Sybil, age 40 is single and supports her dependent parents
who live with her, as well as her grandfather who is in a nursing
home. She has AGI of 80,000 and itemized deductions of 8,000...
Name three income types to be included in Gross Income and three types of income tax...
Name three income types to be included in Gross Income and three
types of income tax can be excluded from Gross Income. Please
explain why you believe each item you have included in as excluded
income qualifies for that designation.
A hypothetical society has three income earners, and all three must pay income taxes. The taxable...
A hypothetical society has three income earners, and all three
must pay income taxes. The taxable income of Smith is $35,000, the
taxable income of Jones is $100,000, and the taxable income of
Brown is $200,000.
Complete the following table by computing tax revenue under a
proportional income tax when the tax rate is 10% and 15%.
Tax
Tax Revenue
10%
15%
Suppose a progressive tax system is implemented with a rate of
5% on income of $0–$40,000,...
Rank the following three single taxpayers in order of the magnitude of taxable income (from lowest...
Rank the following three single taxpayers in order of the
magnitude of taxable income (from lowest to highest).
(First mean highest taxable income, third means lowest
taxable income.)
Ahmed
Baker
Chin
Gross income
$
91,000
$
91,000
$
91,000
Deductions for AGI
14,250
7,250
0
Itemized deductions
0
7,100
14,210
Deduction for qualified business income
0
2,000
10,000
Ahmed
Baker
Chin
PRG/280 Week Three Assignment – Input Types and Form Designation Based on the readings for this...
PRG/280 Week Three Assignment – Input Types and Form
Designation
Based on the readings for this week, list the input types
supported in HTML in general, and input types supported
only in HTML5.
HTML Input Types
HTML5 Input Types
Study the HTML code snippet that appears below and answer these
questions:
Based on the code below, where will this form be sent after the
user clicks the Submit button?
How would the HTML code need to be changed if...
T&G Co. manufactures three types of computer desks. The income statement for the three products and...
T&G Co. manufactures three types of computer desks. The
income statement for the three products and the whole company is
shown below:
Product A
Product B
Product C
Total
Sales
$76,000
$104,000
$115,000
$295,000
Variable costs
41,000
69,000
105,000
215,000
Fixed costs
25,900
18,500
18,500
62,900
Total costs
66,900
87,500
123,500
277,900
Operating income (loss)
$9,100
$16,500
$(8,500
)
$17,100
The company produces 1,000 units of each product. The company’s
capacity is 17,000 machine hours. The machine hours for each...
T&G Co. manufactures three types of computer desks. The income statement for the three products and...
T&G Co. manufactures three types of computer desks. The
income statement for the three products and the whole company is
shown below:
Product A
Product B
Product C
Total
Sales
$75,000
$95,000
$105,000
$275,000
Variable costs
40,000
60,000
95,000
195,000
Fixed costs
22,400
16,000
16,000
54,400
Total costs
62,400
76,000
111,000
249,400
Operating income (loss)
$12,600
$19,000
$(6,000
)
$25,600
The company produces 1,000 units of each product. The company’s
capacity is 17,000 machine hours. The machine hours for each...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- If a mixture of water-ethanol containing a significant amount of methanol is being distilled (separation by...
- Jim who recently quit his job after receiving a very large bonus payment is interested in...
- The International Space Station uses the electrolysis of water to continuously replenish the oxygen in the...
- 1. Strategy and business model are two important concepts introduced early in the course. What question...
- Could you create me a secant code in Matlab program? That's I can keep it and...
- Calculate the CO2 emission reduction in short tons/year that would result from increasing the efficiency of...
- QUESTION 2 (30 marks) 2.1 As the director of a firm's capital budgeting department, you have...
ADVERTISEMENT