Questions from Federal Taxation

Q: Lucinda, a welder for Big Auto Inc. dies in an

Lucinda, a welder for Big Auto Inc. dies in an automobile accident on March 14 of this year. Big Auto has a company policy of paying $5,000 to the spouse of any employee who dies. In addition to the...

Q: Joan is a single individual who works for Big Petroleum, Inc

Joan is a single individual who works for Big Petroleum, Inc. During all of 2017, she is stationed in West Africa. She pays West African taxes of $20,000 on her Big Petroleum salary of $92,000. Her ta...

Q: What does the 90-day letter represent, and what are

What does the 90-day letter represent, and what are the choices the taxpayer has after receiving one?

Q: Boris is an unmarried systems specialist with a public accounting firm.

Boris is an unmarried systems specialist with a public accounting firm. During all of 2017, he is on temporary assignment in London. He pays $21,000 in British income tax on his $100,000 salary. Bo...

Q: Zoie has worked for Humple Manufacturing for 16 years. Humple has

Zoie has worked for Humple Manufacturing for 16 years. Humple has a pension plan that matches employee contributions by up to 4% of an employee’s salary. Zoie, age 60, is ready to retire. She has c...

Q: Erwin works for Close Corporation for 24 years. Close has a

Erwin works for Close Corporation for 24 years. Close has a qualified, noncontributory pension plan that pays employees with more than 5 years of service $100 per month per year of service when they...

Q: Under what circumstances can the following taxpayers defer recognition of prepaid income

Under what circumstances can the following taxpayers defer recognition of prepaid income beyond the year of receipt? a. A cash basis taxpayer b. An accrual basis taxpayer

Q: Bear Company provides all its employees with a $10,000

Bear Company provides all its employees with a $10,000 group term life insurance policy. Elk Company does not provide any life insurance but pays $10,000 to survivors of employees who die. Jackie, an...

Q: Horace is an employee of Ace Electric Co. Ace provides all

Horace is an employee of Ace Electric Co. Ace provides all employees with group term life insurance equal to twice their annual salary. How much gross income does Horace have under each of the follo...

Q: Abe is an employee of Haddock, Inc. Haddock provides basic

Abe is an employee of Haddock, Inc. Haddock provides basic health and accident insurance to all its employees through a contract with Minor Accident Insurance Company. Because the Minor policy does...