Questions from Federal Taxation

Q: Conrad is a citizen and resident of Trinidad. He receives an

Conrad is a citizen and resident of Trinidad. He receives an $8,000 dividend from Sturino Industries, a U. S. domestic corporation. a. What is the tax treatment of the dividend? b. Under what circu...

Q: Salvadore, 35, is an employee of the Malthouse Corporation.

Salvadore, 35, is an employee of the Malthouse Corporation. Henrique, 40, is an employee of the Sheedy Corporation. Both belong to a contributory pension plan that requires them to match their employ...

Q: Manuel is an employee of the Etowah Corporation and has worked for

Manuel is an employee of the Etowah Corporation and has worked for the company for 22 years. Employees are not required to make contributions to the company’s defined benefit plan. Based on the plan...

Q: Sarah is vice president of production for Fenner Inc., a corporation

Sarah is vice president of production for Fenner Inc., a corporation, which maintains a money purchase pension plan for its employees. She owns 8% of Fenner’s stock. Determine the maximum deductible...

Q: Warren is a partner in Baines Brothers, a consulting firm specializing

Warren is a partner in Baines Brothers, a consulting firm specializing in the design of Intranets. Baines maintains a profit-sharing Keogh plan for its partners and employees. Warren owns a 10% part...

Q: Ferris and Jody are married and file a joint return. During

Ferris and Jody are married and file a joint return. During the current year, Ferris had a salary of $45,000. Neither Ferris nor Jody is covered by an employer-sponsored pension plan. Determine the...

Q: Deskjet Corporation sells equipment with an adjusted basis of $22,

Deskjet Corporation sells equipment with an adjusted basis of $22,000 for $3,000. The corporation paid $43,000 for the equipment three years ago. Identify the tax issue(s) posed by the facts presente...

Q: Zorica and Pierre are married and file a joint return. Zorica

Zorica and Pierre are married and file a joint return. Zorica earns $59,500 and Pierre $45,000. Their adjusted gross income is $106,000. Determine the maximum IRA contribution and deduction in each...

Q: Lenore, a single taxpayer with adjusted gross income of $66

Lenore, a single taxpayer with adjusted gross income of $66,000, is covered by her employer's pension plan. She makes a $5,500 contribution to her IRA during the current year. a. How much of the co...

Q: In October 2016, the Clark Corporation decides to establish a SIMPLE

In October 2016, the Clark Corporation decides to establish a SIMPLE-401(k) retirement plan for its employees. Clark meets all requirements for establishing a SIMPLE. The company has notified its empl...