Questions from Federal Taxation

Q: On January 1, 2018, Kunto a cash basis taxpayer,

On January 1, 2018, Kunto a cash basis taxpayer, pays $46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No inte...

Q: Paul and Sonja, who are married, had itemized deductions of

Paul and Sonja, who are married, had itemized deductions of $13,200 and $400, respectively during 2018. Paul suggests that they file separately he will itemize his deductions from AGI, and she will cl...

Q: Sydney, a single taxpayer, had $80,000 in

Sydney, a single taxpayer, had $80,000 in adjusted gross income in year 2. During the year, she contributed $15,000 to her church. She also had a $17,000 contribution carryover from her year 1 church...

Q: Bigham Corporation, an accrual basis calendar year taxpayer, sells its

Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2018,...

Q: Andre acquired a computer on March 3, 2018, for $

Andre acquired a computer on March 3, 2018, for $2,800. He elects the straight line method for cost recovery Andre does not elect immediate expensing under 179. He does not claim any available additio...

Q: Cecil C. Seymour is a 64-year-old widower

Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows: The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payment of $450. Cecil has...

Q: Daniel B. Butler and Freida C. Butler, husband and

Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-4...

Q: Addison Parker (Social Security number 123-45-6785),

Addison Parker (Social Security number 123-45-6785), single and age 32, lives at 3218 Columbia Drive, Spokane, WA 99210. She is employed as regional sales manager by VITA Corporation, a manufacturer a...

Q: Tim and Sarah Lawrence are married and file a joint return.

Tim and Sarah Lawrence are married and file a joint return. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA...

Q: Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466

Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6789. Ashley is single and has a 20-year-old son, Bill His Social Security number is 111-11-1112. Bill...