Questions from Federal Taxation

Q: Explain how an account receivable can give rise to a bad debt

Explain how an account receivable can give rise to a bad debt deduction.

Q: Compare and contrast the economist's concept used to recognize income with the

Compare and contrast the economist's concept used to recognize income with the concept employed in measuring taxable income.

Q: Leonard's home was damaged by a fire. He also had to

Leonard's home was damaged by a fire. He also had to be absent from work for several days to make his home habitable. Leonard's employer paid Leonard his regular salary, $2,500, while he was absent fr...

Q: C1assify each of the following expenditures paid in 2018 as a deduction

C1assify each of the following expenditures paid in 2018 as a deduction for AGI, a deduction from AGI, or not deductib1e: a. Barak contributes to his H.R. 10 p1an (i.e., a retirement plan for a self-e...

Q: Tobias has a brokerage account and buys on the margin which resulted

Tobias has a brokerage account and buys on the margin which resulted in an interest expense of $20,000 during the year. Income generated through the brokerage account was as follows: How much invest...

Q: In choosing between taking the standard deduction and itemizing deductions from AGI

In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical...

Q: Jane a tax practitioner has reviewed the law on how state X’s

Jane a tax practitioner has reviewed the law on how state X’s income tax applies to a client web-based consulting business, but is unable to reach a conclusion for which she has a high level of confid...

Q: What is the taxpayer's gross income in each of the following situations

What is the taxpayer's gross income in each of the following situations? a. Darrin received a salary of $50,000 in 2018 from his employer, Green Construction. b. In July 2018, Green gave Darrin an all...

Q: Donald was killed in an accident while he was on the job

Donald was killed in an accident while he was on the job in 2018. Darlene, Donald's wife, received several payments as a result of Donald's death. What is Darlene's gross income from the items listed...

Q: For tax year 2018, determine the number of dependents in each

For tax year 2018, determine the number of dependents in each of the following independent situations: a. Leo and Amanda (ages 48 and 46, respectively) are husband and wife and furnish more than 50% o...