Reference no: EM13846046
1. Albert established a qualified tuition program for each of his twins, Kim and Jim. He started each fund with $20.000 when the children were 5 years old. Albert made no further contributions to his children's plans. Thirteen years later, both children have graduated from high school. Kim's fund has accumulated to $45,000, while Jim's has accumulated to $42,000. Kim decides to attend a state uni-versity, which will cost $60.000 for four years (tuition, fees, room and board, and Ixas). Jim decides to go to work instead of going to college. During the current year, $7300 Is used from Kim's plan to pay the cost of her first semester In college. Because Jim is not going to college now or in the future, Albert withdraws the $42,000 plan balance and gives it to Jim to start his new life after high school.
a. During the period since the plans were established, should Albert or the twins have been including the annual plan earnings in gross income? Explain.
b. What are the tax consequences to Kim and Albert of the $7300 being used for the first semester's higher education costs?
c. Because of her participation in the qualified tuition program, Kim received a 10% reduction in tuition charges: so less than $7300 was withdrawn from her account. Is either Albert or Kim required to include the value of this discount in gross income? Explain.
d. What are the tax consequences to Albert and Jim of Jim's qualified tuition program being closed?
|
Prepare the journal entry to record pension expense
: Prepare the journal entry to record pension expense, gains or losses, past service cost, funding, and payment of benefits for 2013.
|
|
Aicpa code of professional conduct
: 1. Evaluate Joe's actions and motives using ethical reasoning and with reference to the AICPA Code of Professional Conduct. 2. Evaluate Joe's actions from a cognitive development perspective.
|
|
What is the federal law governing vesting
: Pension plans typically require some minimum period of employment before benefits vest. What is the 1974 federal law governing vesting (as well as other aspects of pensions)? What are the vesting rules?
|
|
Write for phd doctorate music essay
: Write for PhD doctorate- It is a music paper about C.P.E. Bach and The style of both papers should be in MLA or Chicago/Turabian. In-text citations are not necessary and the length should be approximately 750 words excluding references
|
|
What are the tax consequences to kim and albert
: During the period since the plans were established, should Albert or the twins have been including the annual plan earnings in gross income? Explain.
|
|
Prepare a t-accounts for cash
: Prepare a T-Accounts for cash; short term investments; dividend revenue; unrealized gain (loss) on investment, and gain on sale of investment. Show the effects of Norton's investment transactions. Start with a cash balance of $98,000; all other ac..
|
|
What is the theoretical and practical trade-off
: What is the theoretical and practical trade-off when measuring the pension liability using the projected benefit obligation compared to the accumulated benefit obligation?
|
|
Who is god and what are his characteristics
: Who is God and what are His characteristics? What is a human being and what happens when one dies? What is the nature of the universe? How do you know what you know? How do you know what is true
|
|
Which elements of deangelos balance sheet are affected
: calculated pension expense for its underfunded pension plan as follows: Required: Which elements of DeAngelo's balance sheet are affected by the components of pension expense? What are the specific changes in these accounts?
|