Questions from General Taxation

Q: John is a single individual who works for Auto Rental Cars in

John is a single individual who works for Auto Rental Cars in Japan during the entire calendar year. His salary is $140,000. How much of this salary can he exclude?

Q: Refer to the information in problem 36. Determine the corporation’s income

Refer to the information in problem 36. Determine the corporation’s income tax liability. From problem 36: Determine a corporation’s taxable income if it has $450,000 of gross receipts, $145,000 cost...

Q: Refer to the information in problem 37. Determine Warner Corporation’s income

Refer to the information in problem 37. Determine Warner Corporation’s income tax liability. From problem 37: The Warner Corporation has gross income of $560,000. It has business expenses of $325,000...

Q: Perform the calculation to prove that the 3 percent surtax on corporate

Perform the calculation to prove that the 3 percent surtax on corporate income between $15,000,000 and $18,333,333 equals the benefit of the 34 percent tax rate on income of no more than $10,000,000....

Q: John has taxable income of $30,000. William has

John has taxable income of $30,000. William has taxable income of $60,000. Determine their 2017 income taxes if they are both single individuals and claim the standard deduction. Compare their incomes...

Q: Carl is a 30 percent partner in the CCF Partnership. At

Carl is a 30 percent partner in the CCF Partnership. At the beginning of the year, his basis in the partnership is $4,000. The partnership reports $7,000 of ordinary income and distributes $3,000 to t...

Q: Mike was shopping in Produce Market when it was robbed. Mike

Mike was shopping in Produce Market when it was robbed. Mike suffered some injuries during the robbery and filed suit against Produce Market for not maintaining a secure environment for its customers....

Q: Markum Corporation owes a creditor $60,000. Markum transfers

Markum Corporation owes a creditor $60,000. Markum transfers property purchased four years ago for $45,000 to the creditor to satisfy the debt. The property is currently worth $60,000. Does Markum hav...

Q: Myra received a $20,000 gift from her cousin and

Myra received a $20,000 gift from her cousin and inherited $80,000 in corporate bonds from her aunt at the beginning of the current year. Myra received $7,000 in interest income from the bonds at the...

Q: Jennifer elects to reduce her salary by $2,500 so

Jennifer elects to reduce her salary by $2,500 so she can participate in her employer’s flexible spending arrangement. Her salary reduction is allocated as follows: $1,700 for medical and dental expen...