Questions from Federal Taxation

Q: Adrian was awarded an academic scholarship to State University for the 2021

Adrian was awarded an academic scholarship to State University for the 2021–2022 academic year. He received $6,500 in August and $7,200 in December 2021. Adrian had enough personal savings to pay all...

Q: Rex purchased a 30% interest in a partnership for $200

Rex purchased a 30% interest in a partnership for $200,000. In 2021, the partnership generated $400,000 of taxable income and Rex withdrew $100,000. In 2022, the partnership earned $600,000 of taxable...

Q: The UVW Union and HON Corporation are negotiating contract terms. Assume

The UVW Union and HON Corporation are negotiating contract terms. Assume that the union members are in the 24% marginal tax bracket and that all benefits are provided on a nondiscriminatory basis. Wri...

Q: Belinda spent the last 60 days of 2021 in a nursing home

Belinda spent the last 60 days of 2021 in a nursing home. The cost of the services provided to her was $18,000 ($300 per day). Medicare paid $8,500 toward the cost of her stay. Belinda also received $...

Q: Tim is the vice president of western operations for Maroon Oil Company

Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company offic...

Q: Bertha is considering taking an early retirement offered by her employer.

Bertha is considering taking an early retirement offered by her employer. She would receive $3,000 per month, indexed for inflation. However, she would no longer be able to use the company’s health fa...

Q: Daniel, age 38, is single and has the following income

Daniel, age 38, is single and has the following income and expenses in 2021: Salary income ………………………………………………………………………………$65,000 Net rent income………………………………………………………………………………. 6,000 Dividend income ……...

Q: María, age 32, earns $60,000 working in

María, age 32, earns $60,000 working in 2021. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is dama...

Q: A list of the items that Faith sold and the losses she

A list of the items that Faith sold and the losses she incurred during the current tax year is as follows: Yellow, Inc. stock ………………………………………………$ 1,600 Faith’s personal use SUV ………………………………………8,000 Fa...

Q: Suzanne, a single taxpayer, operates a printing business as a

Suzanne, a single taxpayer, operates a printing business as a sole proprietor. The business has two employees who are paid a total of $90,000 during 2021. Assume that the business has no significant a...