Questions from Federal Taxation

Q: While reading a State College alumni newsletter, Linh is surprised to

While reading a State College alumni newsletter, Linh is surprised to learn that interest paid on student loans is deductible. Linh graduated from college 2 years ago and paid $1,200 in interest duri...

Q: Chanda is 36, single, and an active participant in a

Chanda is 36, single, and an active participant in a qualified employee pension plan. Determine the maximum Roth IRA contribution that she can make in each of the following cases: a. Her adjusted gro...

Q: Kevin and Jill are married and file a joint return. Kevin

Kevin and Jill are married and file a joint return. Kevin is 52, and is not an active participant in a qualified employee pension plan, while Jill is 48 and is an active participant in a qualified em...

Q: Alex and Carmin are married and have two children, ages 6

Alex and Carmin are married and have two children, ages 6 and 3. Their adjusted gross income for the year is $123,000. a. What is maximum amount they can contribute to each child’s Coverdell Educat...

Q: Gary and Patricia are divorced and have three children, ages 9

Gary and Patricia are divorced and have three children, ages 9, 6, and 2. Patricia has custody of the children and is entitled to the dependency exemption for each child. Their adjusted gross income...

Q: Yung is the sole owner of Southern Hills Insurance Agency. His

Yung is the sole owner of Southern Hills Insurance Agency. His primary business is the sale of fire and casualty policies. He has recently expanded his business by selling life insurance policies....

Q: How does gross income differ from income?

How does gross income differ from income?

Q: Lleyton is single and has adjusted gross income for 2017 of $

Lleyton is single and has adjusted gross income for 2017 of $58,000. He works as a marketing manager for a national clothing store. During the year he enrolls in two business courses at Heath Univer...

Q: Martha graduated from Tassle Tech and immediately started working as an accountant

Martha graduated from Tassle Tech and immediately started working as an accountant for Creedon Industries. To finance her college education, she borrowed $23,000 from a local bank pays $1,800 of inte...

Q: Simon graduated from Lessard University last year. He financed his education

Simon graduated from Lessard University last year. He financed his education by working part-time and borrowing $16,000. During the current year, he pays $1,400 of interest on his student loan. a. W...