Questions from General Taxation

Q: In 2015, Dominique and Felix are married and file a joint

In 2015, Dominique and Felix are married and file a joint tax return. Their AGI is $312,650 and they claim three exemptions. Determine their total exemption amount for 2015.

Q: Paul and Sonja, who are married, had itemized deductions of

Paul and Sonja, who are married, had itemized deductions of $8,200 and $400, respectively, during 2015. Paul suggests that they file separately—he will itemize his deductions from AGI, and she will cl...

Q: Compute the 2015 tax liability and the marginal and average tax rates

Compute the 2015 tax liability and the marginal and average tax rates for the following taxpayers (use the 2015 tax rate schedules in Appendix A for this purpose). a. Chandler, who files as a sing...

Q: George and Aimee are married. George has wage income of $

George and Aimee are married. George has wage income of $190,000 and Aimee has a sole proprietorship that generated net income of $85,000. They also have interest and dividend income of $21,000. Compu...

Q: Liz and Doug were divorced on July 1 of the current year

Liz and Doug were divorced on July 1 of the current year after 10 years of marriage. Their current year’s income received before the divorce included: Doug’s salary ………………………………………………………………………. $41,...

Q: Howard buys wrecked cars and stores them on his property. Recently

Howard buys wrecked cars and stores them on his property. Recently, he purchased a 1990 Ford Taurus for $400. If he can sell all of the usable parts, his total proceeds from the Taurus will be over $2...

Q: Determine the taxpayer’s current-year (1) economic income

Determine the taxpayer’s current-year (1) economic income and (2) gross income for tax purposes from the following events. a. Sam’s employment contract as chief executive of a large corporation was...

Q: The roof of your corporation’s office building recently suffered some damage as

The roof of your corporation’s office building recently suffered some damage as the result of a storm. You, the president of the corporation, are negotiating with a carpenter who has quoted two prices...

Q: Emily Patrick (36 Paradise Road, Northampton, MA 01060)

Emily Patrick (36 Paradise Road, Northampton, MA 01060) formed Teal Corporation a number of years ago with an investment of $200,000 of cash, for which she received $20,000 in stock and $180,000 in bo...

Q: Dolly is a college student who works as a part-time

Dolly is a college student who works as a part-time server in a restaurant. Her usual tip is 20% of the price of the meal. A customer ordered a piece of pie and said that he would appreciate prompt se...