Questions from Federal Taxation

Q: The Internet is a useful resource for gathering tax information. An

The Internet is a useful resource for gathering tax information. An important aspect of taxes discussed in this chapter is how deductible IRA’s and Roth IRA’s can be used to save for retirement. One...

Q: Pierre is a certified high school teacher in Kansas. During the

Pierre is a certified high school teacher in Kansas. During the year, his wife’s company transfers her to New Jersey. In applying for a job in New Jersey, Pierre is informed that he will be granted...

Q: Evander, an officer in the Marine Corps, was appointed commanding

Evander, an officer in the Marine Corps, was appointed commanding officer of the Marine training base in Beaufort, S.C. As is customary in connection with changes in command, he hosts a party at his...

Q: Simon and Sherry divorce during the current year. As part of

Simon and Sherry divorce during the current year. As part of their property settlement, Simon gives Sherry 25% of the stock in his 100%-owned corporation, Hobday, Inc. The stock has a fair market va...

Q: Stephanie Zane is the sole proprietor of Shear Madness, a hair

Stephanie Zane is the sole proprietor of Shear Madness, a hair salon. Her revenue comes from two sources, haircuts and the sale of hair products. Stephanie has three employees whose compensation co...

Q: Marjorie is an accountant and Alana is an attorney. They have

Marjorie is an accountant and Alana is an attorney. They have been business acquaintances for about 10 years. They meet every Friday at 6 P.M. at a local tavern to socialize. As always happens with...

Q: Salvador is an insurance representative for the Hendricken Insurance Company. Recently

Salvador is an insurance representative for the Hendricken Insurance Company. Recently, he heard that the controller of his largest account, Gore Plastics, was asking other insurance representatives...

Q: Jennifer is self-employed. At Christmas, she gives the

Jennifer is self-employed. At Christmas, she gives the elevator operator in the building where her office is located a pair of gloves. She makes similar gifts to the two parking lot attendants who p...

Q: Audrey opened Hardy Consulting Services during the current year. She has

Audrey opened Hardy Consulting Services during the current year. She has one employee, Deng, who is paid a salary of $30,000. Audrey is confused about the amount of federal unemployment tax she is r...

Q: Vince is the third highest paid executive for Sensor Corporation, a

Vince is the third highest paid executive for Sensor Corporation, a publicly traded-corporation. His salary is $1,250,000. Identify the tax issue(s) posed by the facts presented. Determine the possi...