Reference no: EM13500135
David, a lawyer (age 65), is married and files a joint return. His spouse, Susan, is also 65 years of age. During the current year he engages in the following activities and transactions:
a. eing an avid fisherman, David develops an expertise in tying flies. At times during the year, he is asked to conduct fly-tying demonstrations, for which he is paid a small fee. He also periodically sells flies that he makes. Income generated from these activities during the year is $2,500. The expenses for the year associated with David's fly-tying activity include $125 personal property taxes on a small trailer that he uses exclusively for this purpose, $2,900 in supplies, $270 in repairs on the trailer, and $200 in gasoline for traveling to demonstrations. (Do not consider David's fly tying activities as a hobby).
b. David sells a small building lot to his brother for $40,000. David purchased the lot four years ago for $47,000, hoping to make a profit.
c. Susan enters into the following stock transactions: (None of the stock qualifies as small business stock).
DATE TRANSACTION
March 22 Purchases 100 shares of Silver Corporation common stock for $2,800.
April 5 Sells 200 shares of Gold Corporation common stock for $8,000. The stock was originally purchased two years ago for $5,000
April 15 Sells 200 shares of Silver Corporation common stock for $5,400. The stock was originally purchased three years ago for $9,400.
May 20 Sells 100 shares of United Corporation common stock for $12,000. The stock was originally purchased five years ago for $10,000.
d. David's salary for the year is $370,695. It is decided that the standard deduction will be used.
Answer the following questions regarding David's activities for the year.
1. Compute their taxable income for the year.
2. What is Susan's basis in the Silver stock she continues to own?
|
What is the surface current density
: A current I flows down a wire of radius a. If it is uniformly distributed over the surface, what is the surface current density K
|
|
Determine the maximum current in the primary coil
: A transformer with 410 turns in its primary coil and 34 turns in its secondary coil is designed to deliver an average power of 1300 W with a maximum voltage of 60 V
|
|
Characteristics of each advertising media
: Identify and list the media characteristics of each advertising media and select the media characteristics that match the requirements of the advertising brief case study.
|
|
Find the maximum possible speed of the electron
: Zinc has a work function of 4.30 eV. A 4.80 eV photon strikes the surface and an electron is emitted. What is the maximum possible speed of the electron
|
|
What is susans basis in the silver stock
: David, a lawyer (age 65), is married and files a joint return. His spouse, Susan, is also 65 years of age. During the current year he engages in the following activities and transactions.
|
|
Service company example international finance incorporated
: Two-Variance Analysis: Service Company Example International Finance Incorporated issues letters of credit to importers for overseas purchases.
|
|
Indicate the total number of exemptions
: Cassie is a single mother providing the sole support of her three children, who all live with her. Her 16 year-old daughter, Tammy, earned $15,200 modeling during the year and her two sons, R.J. and Will, ages 10 and 8, have no income.
|
|
Not for profit healthcare organization
: During the fiscal year of June 2012, Lincoln General Hospital, a not-for-profit healthcare organization, had the following revenue-related transactions.
|
|
Determine the angle of the first-order diffraction
: X rays diffract from a crystal in which the spacing between atomic planes is 0.179nm. What is the angle of the first-order diffraction
|