Questions from Federal Taxation

Q: Duck, an accrual basis corporation, sponsored a rock concert on

Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2021. Gross receipts were $300,000. The following expenses were incurred and paid as indicated: Because the coliseum was no...

Q: Fynn incurred and paid the following expenses during 2021: •

Fynn incurred and paid the following expenses during 2021: • $50 for a ticket for running a red light while he was commuting to work. • $100 for a ticket for parking in a handicapped parking space. •...

Q: Terry traveled to a neighboring state to investigate the purchase of two

Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, accounting, and miscellaneous expenses. The total was $52,000. He incurre...

Q: Jamari Peters (Social Security number 123-45-6789)

Jamari Peters (Social Security number 123-45-6789) conducts a business with the following results in 2021: Revenue ………………………………………………………….$20,000 Depreciation on car ………………………………………………3,960 Operating...

Q: Alex, who is single, conducts an activity in 2021 that

Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue ………………………………………………………….$18,000 Propert...

Q: Comment on the availability of head-of-household filing status

Comment on the availability of head-of-household filing status for 2021 in each of the following independent situations: a. Taxpayer lives alone but maintains the household of his parents. In July 202...

Q: Bluebird, Inc., does not provide its employees with any tax

Bluebird, Inc., does not provide its employees with any tax-exempt fringe benefits. The company is considering adopting a hospital and medical benefits insurance plan that will cost approximately $9,0...

Q: Chee, single, age 40, had the following income and

Chee, single, age 40, had the following income and expenses during 2021: Income Salary………………………………………………………………………… $43,000 Rental of vacation home (rented 60 days, used personally 60 days, vacant...

Q: For 2021, MSU Corporation has $500,000 of adjusted

For 2021, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $26...

Q: Monty loaned his friend Ned $20,000 three years ago

Monty loaned his friend Ned $20,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $11,000, Ned filed for bankruptcy and notified Monty tha...