Questions from Federal Taxation

Q: Mandy is interested in purchasing a new automobile for personal use.

Mandy is interested in purchasing a new automobile for personal use. The dealer is offering a special 1.9% interest rate on new cars. Last fall, she opened a home equity line of credit with her bank...

Q: Marjorie is single and has the following investment income:

Marjorie is single and has the following investment income: Interest on savings…………………………………$2,900 Municipal bond interest…………………………….1,500 Dividends………………………………………………..7,600 She pays investment int...

Q: Stoycho and Selen are married. Their marginal tax rate is 28

Stoycho and Selen are married. Their marginal tax rate is 28%. They have the following investment income for 2016 and 2017: Their adjusted gross income before considering the investment income is...

Q: Liang pays $12,000 in interest on debt which was

Liang pays $12,000 in interest on debt which was used to purchase portfolio investments. He receives $6,000 in interest from a certificate of deposit, $4,200 in royalties, and $2,000 in interest on m...

Q: Jana gives property worth $54,000 to her alma mater

Jana gives property worth $54,000 to her alma mater during the current year. She purchased the property several years ago for $32,000. a. What is Jana's maximum deduction if the property is ordinary...

Q: Determine the allowable charitable contribution in each of the following situations:

Determine the allowable charitable contribution in each of the following situations: a. Karen attends a charity auction where she pays $250 for two tickets to a Broadway show. The tickets have a face...

Q: Miguel is a successful businessman who has been approached by St.

Miguel is a successful businessman who has been approached by St. Kilda University to make a donation to its capital campaign. He agrees to contribute $75,000, but he is unsure which of the following...

Q: In each of the following situations, explain why the taxpayer's action

In each of the following situations, explain why the taxpayer's action is or is not tax evasion: a. Jamal owns an electrical appliance repair service. When a client pays him in cash, he gives the cas...

Q: Kweisi incurs the following employment-related expenses during the year:

Kweisi incurs the following employment-related expenses during the year: Airfare …………………………………$2,000 Lodging………………………………..1,500 Meals……………………………………1,200 Entertainment ………………………….800 Incidentals………………...

Q: Chloe and Emma start a new business, Cement Sidewalks and Accessories

Chloe and Emma start a new business, Cement Sidewalks and Accessories (CSA), during the current year. CSA is organized as a partnership. Chloe owns 40% of CSA; Emma owns the remaining 60%. Chloe and...