tax, Basic Statistics

Assignment Help:
_______ 1. F''s share of income from various sources is as follows for the current year:
Source F''s Share of Entity''s Net Income F''s Share of Distributions
ABC Partnership after deducting partner''s salary $ 6,000 $ 9,000
F''s salary from ABC Partnership n/a 30,000
XYZ Corporation, a C corporation 80,000 10,000
Interest from bank savings account 40,000 n/a
F''s A.G.I, (ignoring the deduction for one-half of any self-employment tax) is how much?
a. $89,000
b. $156,000
c. $86,000
d. $56,000
________ 2. Which of the following is not true of the gross income test for the dependency exemption (i.e., in testing to determine if the individual is a qualifying relative)?
a. Generally, a dependent''s gross income may not exceed the exemption amount.
b. Gross income is interpreted to mean "gross cash receipts."
c. A child of the taxpayer, under age 24, who is a full-time student at any time during five calendar months of the tax year is exempted from the test.
d. A child of the taxpayer under age 19 is exempted from the test.
________ 3. Fred, 19 years of age and single, is claimed as a dependent on his parents'' return. He has decided not to go to college. The following information is derived from his tax return for 2011:
Taxable interest and dividends $3,600
Salary from part-time job 2,500
Itemized deductions 1,270
Which of the following is false?
a. Fred''s taxable income is $3,300.
b. Fred will not itemize his deductions for the year.
c. $1,700 of the interest and dividends will be taxed at Fred''s parents'' marginal tax rate if it is higher than Fred''s rate.
d. Fred''s standard deduction is $2,800.
4. In which of the following situations would the taxpayer not be considered in constructive receipt of income in 2011? Assume that all of the taxpayers use the cash method of accounting.
a. Al is a self-employed accountant. On December 27, 2011, he received a check for $2,000 for preparing the November financial statements of one of his clients. Due to illness, he was unable to deposit the check until January 5, 2012.
b. Ben entered into a contract to sell his rental property on December 3, 2011. On that date, the down payment, a check for $1,000, was placed in an escrow account. Ben received the check when the transaction closed on January 20, 2012.
c. Sugar Ray fought Rocky on December 25, 2011, a Christmas fight shown on television all over the world. On December 28, the fight promoters gave Sugar Ray''s agent, Leo Luciani, a check for $5 million representing his prize money for the fight. Leo delivered the check to Sugar Ray on January 12, 2012.
d. On December 20, 2011, Mr. Big received stock worth $10,000 as a bonus from the corporation for which he worked. He did not sell the stock until January 5, 2012.
e. All of the taxpayers above are in constructive receipt of the income items.
________ 5. S is a cash basis, calendar year taxpayer (she uses the accrual-method for inventory). She operates Cloth R Us. All of the store''s profits come from the sale of fabric. During the year she paid the following expenses:
1. $3,000 premium for liability insurance covering her business. The coverage runs from December 1, 2011 through November 30, 2014.
2. $10,000 for cloth, all of which is still on hand at the end of the taxable year.
3. $2,000 for "points" related to obtaining a loan for the purchase of her personal residence.
4. $1,200 for "points" related to obtaining a loan on rental property.
S may deduct all of the expense incurred in 2011 for which item(s)?
a. 1.
b. Land2.
c. L, 2. and 3.
d. L, 3. and 4.
e. 3.


Related Discussions:- tax

IFRS 9, The company acquired 50000 8% preferencd shares (with a par value o...

The company acquired 50000 8% preferencd shares (with a par value of R4 each) in cross limited on 30 june 2006 for R180000.

Average velocity profile-actual velocity profile, 1)  You are developing a ...

1)  You are developing a sampling protocol whereby you're going to insert a probe into a turbulent flow in a circular conduit of radius R. a. Using a description of a velocity p

Distinction between management and financial accounting, Distinction betwee...

Distinction between Management and Financial Accounting The variations between control sales and financial sales include Control sales provides details to individuals within a

Explain accounting Accumulated depreciation , A contra-asset assessment con...

A contra-asset assessment consideration used to history the buildup of regular credit created to indicate the conclusion of the approximated useful life of investment resources.

Quartiles and percentiles, Quartiles and Percentiles Percentile can ...

Quartiles and Percentiles Percentile can be explained as : a measure this tells us what is the percent of the total frequency scored at or below the measure. Quartiles

Calculate the mean and the standard deviation, 1.  Create formulas to calcu...

1.  Create formulas to calculate the normalized (i.e., percentage scores) for each of the quizzes and exams.  The yellow fields depict where these interim calculations are required

STATISTICS FOR MANAGEMENT, 1. Mention the characteristics of Statistics. Ex...

1. Mention the characteristics of Statistics. Explain any two applications of Statistics. 2. Distinguish between primary and secondary data. What are the methods of collecting prim

Probability statistics, Probability 3DP, a Luxembourg-based company pla...

Probability 3DP, a Luxembourg-based company plans to develop and sell highly specialized 3D printers. The cost of product development is estimated at EUR 50,000.-, irrespective

Statistical quality control, If in a hall there are 18 persons then how man...

If in a hall there are 18 persons then how many handshakes are possible?

Write Your Message!

Captcha
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