Questions from Federal Taxation

Q: On December 29, 2021, an employee received a $5

On December 29, 2021, an employee received a $5,000 check from her employer’s client. The check was payable to the employer. The employee did not remit the funds to the employer until December 30, 202...

Q: Research the following questions regarding virtual currency, and write your answers

Research the following questions regarding virtual currency, and write your answers in the form of a set of “frequently asked questions” (FAQs) suitable for the website of your CPA firm. As part of yo...

Q: David R. and Ella M. Cole (ages 39 and

David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a self-employed consultant specializing in retail management, and...

Q: Lance H. and Wanda B. Dean are married and live

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed part-time as a par...

Q: Logan B. Taylor is a widower whose wife, Sara,

Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2018. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2020, he had the fo...

Q: Janice Morgan, age 24, is single and has no dependents

Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2020, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her b...

Q: Meghan, a calendar year taxpayer, is the owner of a

Meghan, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2021, she leases an office building to use in her business for $120,000 for an 18-mont...

Q: John Rivera, age 31, is single and has no dependents

John Rivera, age 31, is single and has no dependents. At the beginning of 2021, John started his own excavation business and named it Earth Movers. John lives at 1045 Center Street, Lindon, UT, and hi...

Q: Daniel B. Butler and his spouse Freida C. Butler file

Daniel B. Butler and his spouse Freida C. Butler 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&...

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

Cecil C. Seymour is a 64-year-old widower. He had income for 2021 as follows: Pension from former employer …………………………………………………………………………..$39,850 Interest income from Alto National Bank…………………………………………...