Evaluate the capital loss

Assignment Help Managerial Accounting
Reference no: EM131794

Question 1. For federal tax purposes, royalty income not derived in the ordinary course of a business is defined as:

active income.
passive income.
portfolio income.
None of the above

Question 2. When comparing corporate and individual taxation, the subsequent statements are true, except:

Individuals have exemptions and a standard deduction; corporations do not.

Both types of taxpayers have percentage limitations on the charitable contribution deduction, coupled with a carryover of the excess contribution.

All taxpayers can carry net operating losses back two years, forward 20 years.

Both corporate and individual taxpayers may have a long-term capital loss carry forward.

Question 3. Al and Amy file a joint return for the 2012 tax year. Their adjusted gross income is $80,000. They had net investment income of $9,000. In 2012, they had the subsequent interest expenses:

Personal credit card interest: $4,000
Home mortgage interest: $8,000
Investment interest (on loans used to buy stocks): $10,000

What is the interest deduction for Al and Amy for the 2012 tax year? (Points : 5)

$17,000
$8,000
$12,000
$18,000

Question 4. Charitable contribution deductions for cash donations made by individuals to public charities are limited to:

50% of AGI.
40% of AGI.
30% of AGI.
20% of AGI.

Question 5. The subsequent taxes were paid by Tim:

Real estate taxes on his home: $1,000
State income taxes: $900
State gasoline tax (personal use of automobile): $150

In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes?

$2,000
$3,050
$0
$1,900

Question 6. Smith, Inc. had gross receipts from operations of $200,000, operating and other expenses of $310,000, and dividends received from a 65 percent-owned domestic corporation of $120,000. Hoover's tax position for the year is:

$10,000 taxable income.
$86,000 net operating loss.
$40,000 taxable income.
$110,000 net operating loss.

Question 7. All of the outstanding stock of a closely held C corporation is owned equally by Evelyn Humo and Steve Bufusno. In 2012, the corporation prepares taxable income of $20,000 from its active business activities. In addition, it earns $20,000 of interest from investments and incurs a $40,000 loss from a passive activity.

How much income does the C corporation report for 2012?

$10,000 of portfolio income

$0

$20,000 of portfolio income

None of the above

Question 8. Bob, who is single, has $90,000 of salary, $25,000 of income from a limited partnership, and a $30,000 passive loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $90,000. Of the $30,000 loss, how much is deductible?

$30,000
$10,000
$25,000
$0

Reference no: EM131794

Questions Cloud

Write the electronic configuration in sublevels : Write the electronic configuration in sublevels for the following atoms
Capital expenditure budget : Capital Expenditure Budget
Computer sales and repair store system : It is required to design a relational database system for a "realistic" application
Impacts of the successful mergers : Impacts of the successful mergers
Evaluate the capital loss : Evaluate the capital loss
Write a program that inputs a dollar amount to be printed : Write a program that inputs a dollar amount to be printed on a check and then prints the amount in check-protected format with leading asterisks if necessary
Decision analysis problem : Explain about Decision analysis problem
Briefly describe metaphors credit card policy : Briefly describe Metaphors credit card policy
Estimate carls performance : Estimate Carl's performance on the new machine.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd