Questions from Federal Taxation

Q: Sergio has participated for eight years in a defined benefit plan and

Sergio has participated for eight years in a defined benefit plan and has nine years of service with his employer. His average compensation for the three highest years is $160,000. What is Sergio's do...

Q: During 2018, Learphart Corporation contributes $35,000 to its

During 2018, Learphart Corporation contributes $35,000 to its qualified pension plan. Normal cost for this year is $15,000, and the amount necessary to pay retirement benefits on behalf of employee se...

Q: Joanne, age 44, defers $23,000 in a

Joanne, age 44, defers $23,000 in a qualified solo 401(k) plan in 2018. a. What amount must be returned to Joanna and by what date? b. In what year will the amount be taxed? c. What percent of the tax...

Q: Zack, a sole proprietor, has earned income of $85

Zack, a sole proprietor, has earned income of $85,000 in 2018 (after the deduction for one-half of self-employment tax). What is the maximum contribution Zack may make to a defined contribution Keogh...

Q: Jadeveon a self-employed attorney, has a profit plan with

Jadeveon a self-employed attorney, has a profit plan with a contribution rate of 15% of compensation. Jadeveon's earned income after the deduction of one-half of self-employment tax but before the Keo...

Q: In 2018, Cao's compensation before his employer's contribution to a SEP

In 2018, Cao's compensation before his employer's contribution to a SEP is $66,000. up to what amount can Cao's employer contribute and deduct in 2018?

Q: Robin, an executive, receives a golden parachute payment of $

Robin, an executive, receives a golden parachute payment of $600,000 from his employer. His average annual compensation for the most recent five tax years is $150,000 a. For what amount will the corpo...

Q: In the current year, Barlow moved from Chicago to Miami to

In the current year, Barlow moved from Chicago to Miami to start a new job, incurring costs of $1,200 to move household goods and $2,500 in temporary living expenses. Barlow was not reimbursed for any...

Q: On May 31, 2013, Andro Corporation sold 500 shares of

On May 31, 2013, Andro Corporation sold 500 shares of its stock to Nombeko, an employee, for $100 per share. No special election is made. At the time of the sale, the fair market value of the stock wa...

Q: Zaire Corporation granted an ISO for 250 shares of its stock to

Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on Ju1y 20, 2017, for service rendered. The option price was $130 and the fair market va1ue was $130 on the date of the grant. Bru...