Questions from Federal Taxation

Q: Pat, who is age 66 and single with no dependents,

Pat, who is age 66 and single with no dependents, received a salary of $90,000. She reports interest income of $1,000, dividend income of $5,000, gambling winnings of $4,000, and interest income from...

Q: Renee and Sanjeev Patel, who are married, report taxable income

Renee and Sanjeev Patel, who are married, report taxable income of $273,000. They computed positive AMT adjustments of $38,000, negative AMT adjustments of $14,000, and AMT preference items of $67,500...

Q: Farr is single, has no dependents, and does not itemize

Farr is single, has no dependents, and does not itemize her deductions. She shows the following items relative to her current-year tax return. Bargain element from the exercise of an ISO (no res...

Q: Lynn, age 45, is single and has no dependents.

Lynn, age 45, is single and has no dependents. Her income and expenses for the current year are reported as follows. Income Salary…………………………………………………………………$33,000 Taxable interest on corporate bonds…...

Q: In 2017, Bianca earned a salary of $164,000

In 2017, Bianca earned a salary of $164,000 from her employer, CallMart. How much in FICA and Medicare taxes will CallMart withhold from Bianca’s salary?

Q: Clint, a self-employed engineering consultant, is contemplating purchasing

Clint, a self-employed engineering consultant, is contemplating purchasing an old building for renovation. After the work is completed, Clint plans to rent out two-thirds of the floor space to busines...

Q: Bonnie, who is single, reports a zero taxable income this

Bonnie, who is single, reports a zero taxable income this year. Bonnie itemizes her deductions and takes the personal exemption. She reports positive AMT timing adjustments of $200,000 and other AMT p...

Q: In the current year, Redland Corporation’s regular tax liability was $

In the current year, Redland Corporation’s regular tax liability was $28,000, and its AMTI was $232,000. Redland is not a small corporation, and this is not its first year of operations. a. Compute Re...

Q: On December 27, 2017, Roberta purchased four tickets to a

On December 27, 2017, 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...

Q: Singh Inc., a calendar year taxpayer, reported the following transactions

Singh Inc., a calendar year taxpayer, reported the following transactions. Singh is not a small corporation for AMT purposes. Taxable income………………………………………………………………………………………$2,600,000 Depreciatio...