Questions from General Taxation

Q: Andrew, a single individual, has $220,000 in

Andrew, a single individual, has $220,000 in salary and $60,000 in self-employment income in 2017. How much must he pay for his additional Medicare surtax?

Q: Lenora and Sam are married and file a joint tax return.

Lenora and Sam are married and file a joint tax return. Lenora has $180,000 in salary and Sam has $190,000 in self-employment income in 2017. How much must they pay for their additional Medicare surta...

Q: Diana, a single individual, has regular taxable income of $

Diana, a single individual, has regular taxable income of $220,000 and alternative minimum taxable income of $350,000. a. What is Diana’s tentative minimum tax? b. What is Diana’s AMT?

Q: Noah, a single parent, estimated his income tax liability would

Noah, a single parent, estimated his income tax liability would be $8,000. He made estimated tax payments of $6,900 during the year. Noah also determined that he is entitled to claim a child tax credi...

Q: Sorbon Corporation pays federal income tax at a 34 percent rate.

Sorbon Corporation pays federal income tax at a 34 percent rate. In year 1, Sorbon deducts $80,000 as bad debt expense in computing its book income but deducts only $70,000 for bad debt expense on its...

Q: On December 1, year 1, Peak Advertising (a calendar

On December 1, year 1, Peak Advertising (a calendar-year, accrual-basis taxpayer) received a $24,000 retainer fee for a two-year service contract. a. How much income should Peak report in year 1 for t...

Q: Kondex, a cash-basis corporation, is considering paying $

Kondex, a cash-basis corporation, is considering paying $50,000 of expenses at the end of this year rather than waiting until next year. Kondex’s marginal tax rate for the current year is 25 percent b...

Q: Go to www.irs.gov and print Form 1040 and

Go to www.irs.gov and print Form 1040 and Schedule SE. Complete the first page of Form 1040 and Schedule SE for Angelina Carlyle who is single. She reports $195,000 of net profit on her Schedule C fro...

Q: Carolyn has a 50 percent interest in a general partnership that has

Carolyn has a 50 percent interest in a general partnership that has a $14,000 loss for the year. She materially participates in the partnership. Her basis in the partnership is $10,000. She also has s...

Q: Go to the IRS Web site (www.irs.gov

Go to the IRS Web site (www.irs.gov) and print Schedule E: Supplemental Income and Loss. Use the following information to complete this form. Gillian Martin rented her vacation home in Telluride, Co...