Questions from Federal Taxation

Q: Ben and Molly are married and will file jointly. Ben earns

Ben and Molly are married and will file jointly. Ben earns $300,000 from his single-member LLC (a law firm). He reports his business as a sole proprietorship Wages paid by the law firm amount to $40,0...

Q: Ava recently graduated from college and is interviewing for a position in

Ava recently graduated from college and is interviewing for a position in marketing. Gull Corporation has offered her a job as a sales Decision Making representative that will require extensive travel...

Q: Complete the following table by classifying each of the independent expenditures (

Complete the following table by classifying each of the independent expenditures (assume that no reimbursement takes place and that employee business expenses are not deductible)

Q: During 2018, Susan incurred and paid the following expenses for Beth

During 2018, Susan incurred and paid the following expenses for Beth (her daughter), Ed (her father), and herself: Beth qualifies as Susan's dependent, and Ed would also qualify except that he recei...

Q: Zhou owns a non rental business with two separate departments. Department

Zhou owns a non rental business with two separate departments. Department A generates net income of $70,000, and Department B generates a net loss of $58,000. Zhou participates 800 hours in the operat...

Q: Norma, who is single and uses the cash method of accounting

Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2018, she files her state income tax return for 2017 and pays an additional $1,000 in...

Q: Malcolm owns 60% and Buddy owns 40% of Magpie Corporation

Malcolm owns 60% and Buddy owns 40% of Magpie Corporation. On July 1, 2018, each lends the corporation $30,000 at an annual interest rate of 5% Malcolm and Buddy are not related. Both shareholders use...

Q: This year, Nadia donates $4,000 to Eastern University’s

This year, Nadia donates $4,000 to Eastern University’s athletic department. The payment guarantee’s that Nadia will have preferred seating at football games near the 50-yard line. Assume that Nadia s...

Q: Liz have AGI of $130,000 in 2018. She

Liz have AGI of $130,000 in 2018. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2018 a. What is the amount of Liz's deduction assumin...

Q: On December 27, 2018, Roberta purchased four tickets to a

On December 27, 2018, Roberta purchased four tickets to a charity ball sponsored by the city of San Diego for the benefit of underprivileged children Each ticket cost $200 and had a fair market value...