Questions from Federal Taxation

Q: Diane and Peter were divorced in 2017. The divorce agreement states

Diane and Peter were divorced in 2017. The divorce agreement states that Peter is to have custody of their son, Stewart, and that Peter will be entitled to the dependency exemption. In addition, Dian...

Q: Mona works for Leonardo Corporation as a sales representative. Leonardo gives

Mona works for Leonardo Corporation as a sales representative. Leonardo gives her a travel allowance of $350 per month. During the current year, she spends the following amounts on valid travel expe...

Q: Alvin is an employee of York Company. During the year,

Alvin is an employee of York Company. During the year, he incurs the following employment-related expenses: Travel…………………………………………….$ 4,000 Meal………………………………………………. 2,400 Lodging……………………………………………2,50...

Q: The Ballaraat Corporation is cutting costs. The vice president of finance

The Ballaraat Corporation is cutting costs. The vice president of finance has asked the tax department to justify the company's continued use of an accountable employee expense reimbursement plan. Y...

Q: Norman and Vanessa are married and have 2 dependent children. This

Norman and Vanessa are married and have 2 dependent children. This is a summary of their 2016 tax return: Adjusted gross income…………………………………………………$103,800 Deductions from a...

Q: Evelyn is single and a self-employed engineer. During 2017

Evelyn is single and a self-employed engineer. During 2017, Evelyn's income from her engineering business is $55,000. Evelyn pays $3,100 for her medical insurance policy. a. How should the medical i...

Q: Thomas is single and a self-employed architect. During 2017

Thomas is single and a self-employed architect. During 2017, Thomas’s income from his business is $144,000. He also pays $2,200 for a medical insurance policy. a. How should the medical insurance po...

Q: Carlos and Angela are married, file a joint return, and

Carlos and Angela are married, file a joint return, and both are 42 years old. During the current year, Carlos’s salary is $70,000. Neither Carlos nor Angela is covered by an employer-sponsored pens...

Q: Lois and Kam are married and file a joint return. Lois

Lois and Kam are married and file a joint return. Lois earns $64,500 and Kam earns $40,000. Their adjusted gross income is $112,000. Determine the maximum IRA contribution and deduction in each of th...

Q: Kathy, who is single and 25, inherited $7,

Kathy, who is single and 25, inherited $7,000 from her grandmother. A coworker has suggested that Kathy open an Individual Retirement Account with the $7,000. Her friend says that an IRA is a great...