These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 11/15/2014 | Time Spent: | 3 h , 17 min , 15 secs | Points Received: | 75 / 75 (100%) | | Question Type: | # Of Questions: | # Correct: | Multiple Choice | 8 | 8 | Essay | 2 | N/A | | | Grade Details - All Questions | Question 1. | Question : | (TCO B) In which of the following situations may taxpayers
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1. Discuss the different types of interests and the IRS rule related to the deductibility of each type for tax purposes. In the case in which we studying here in regards to the divorce of Marla and David they have a plan in place the does seem that over the next years will be beneficial to both parties. The different types of interest that would apply to this particular would be personal interest and investment interest. Personal interest is a deductible interest that would be considered as
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Exam #3 ACNT 1331 Spring 2012 | | 1. Terry Trumbull purchased a tract of land. In order to have city water, he had to pay the water company $5,000 to extend the water line to his property. The $5,000 cost is an addition to the basis of the land. a. True b. False Answer: _____ 2. The basis for nonbusiness property changed to business use is the greater of the adjusted basis of the property or its fair market value on the date it is converted to business use. a. True b. False
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Federal Income Tax I Self Employed Income Bella Bonita is self-employed as a hair stylist. She works at Fancy’s Inc., where she rents a station. On Saturdays, she works at Fancy’s in the morning and then drives to the senior center to do hair for the residents. Bella is a cash-basis taxpayer who materially participates in the operation of her business. Bella did not make any payments that would require her to file Form 1099. She received Form 1099-MISC for $7,800 from Fancy’s, and had
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Part 1 Calculation Taxable income=Pre-tax net income+Fines & Penalties+Allowance for bad debts-Tax-exempt income-Depreciation=652,000+6,000+15,000-3,000-4,500=665,500 Current tax expense=Taxable income*Tax rate=665,500*34%=226,270 Beginning of year balance: Total DTA=Beginning-of-year warranty reserve*Tax rate=40,000*34%=13,600 Total DTL=Beginning-of-year depreciation*Tax rate=10,000*34%=3,400 Net total DTA/DTL=Total DTA-Total DTL=13,600-3,400=10,200 End of year balance:
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income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 39.6% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. a. Azure is a C corporation and pays no dividends or salary to Sasha. b. Azure is a C corporation and distributes
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income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 39.6% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. a. Azure is a C corporation and pays no dividends or salary to Sasha. b. Azure is a C corporation and distributes
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Federal Estate Tax Introduction Federal estate taxes have been a heavily debated topic since the law was introduced in 1916. The IRS defines estate taxes as “a tax on your right to transfer property at your death.” A History of the Tax Estate taxes trace back to as early as 700 B.C. Historians believe there was a 10% tax in Egypt on the transfer of property upon death. In the United States, the tradition of taxing assets after death was used on and off from 1797 to fund wars. The first
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Tax deductions are related to the legislative grace and the ability-to-pay concept. 2 Restrictions: 1. Only deductions allowed by the tax law may be subtracted to compute taxable income. Congress allows deductions for the costs of earning income and certain expenditures. 2. A deduction is allowed for an item only if all requirements are satisfied. Business Expense: the expense must have a business purpose that is unrelated to its tax effect. Gross Income: Only the excess of an individual’s
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Rachel found a bundle of $100 bills in the alley outside his apartment. When no one claimed the money, the cash (a total of $2,400) was returned to Rachel. Finally, Rachel earned salary of $42,000 but almost $6,500 was withheld for income taxes and FICA tax. Compute Rachel's (a) realized income and (b) gross income. BE SURE TO CALCULATE BOTH AMOUNTS. a) 3,700 + 2,750 + 2,400 + 42,000 = $50,850 b) 3,700 + 2,400 + 42,000 = $48,100 2. Ted works as a painter for local businesses on weekends, and he often
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