Questions from Federal Taxation

Q: Floyd owns an antique shop. During the year, he and

Floyd owns an antique shop. During the year, he and his wife, Amanda, who works as a real estate broker, attend a 3-day antique show in Boston. The expenses related to the antique show are as follow...

Q: Jan owns the Mews Bar and Grill. Every year at Christmas

Jan owns the Mews Bar and Grill. Every year at Christmas, he has a party for his 20 employees and their families. This year’s party cost $1,600. At the party, Jan presented each employee with a $50...

Q: For each of the following situations determine whether the expenses are deductible

For each of the following situations determine whether the expenses are deductible as an education expense. a. Dorothy owns a real estate business. She is enrolled in a one-year weekend MBA program t...

Q: Paula is single and works as a high school science teacher.

Paula is single and works as a high school science teacher. Each summer, she travels to a national conference on high school science curriculum. She also spends one week during the summer traveling...

Q: Cory is the fourth-highest-paid officer of the Mast

Cory is the fourth-highest-paid officer of the Mast Corporation, a publicly traded corporation. The company pays Cory a salary of $1,100,000. What amount can it deduct as salary expense? Would your...

Q: Chet is an officer of the Branson Corporation a publicly traded corporation

Chet is an officer of the Branson Corporation a publicly traded corporation. His salary for the year is $1,320,000, which is the sixth-highest salary at Branson. What amount can the corporation dedu...

Q: Howard loaned $8,000 to Bud two years ago.

Howard loaned $8,000 to Bud two years ago. The terms of the loan call for Bud to pay annual interest at 8%, with the principal amount due in three years. Until this year, Bud had been making the req...

Q: Gosney Corporation has 2 employees. During the current year, Clinton

Gosney Corporation has 2 employees. During the current year, Clinton earns $80,000 and Trahn earns $150,000. How much Social Security tax does Gosney have to pay on the salaries earned by Clinton and...

Q: During the year, Grace Inc. has total sales of $

During the year, Grace Inc. has total sales of $800,000. Based on total sales, the corporation estimates that its bad debts for the year are 2% of sales. As a result, the corporation deducts $16,000...

Q: RealTime Rentals leases space on its Internet server. Its standard one

RealTime Rentals leases space on its Internet server. Its standard one-year lease agreement requires new customers to pay the first and last months' rent upon signing the lease and a $500 deposit tha...