Questions from General Taxation

Q: Taylor, age 18, is claimed as a dependent by her

Taylor, age 18, is claimed as a dependent by her parents. For 2015, she has the following income: $4,000 of wages from a summer job, $1,800 of interest from a money market account, and $2,000 of inter...

Q: Walter and Nancy provide 60% of the support of their daughter

Walter and Nancy provide 60% of the support of their daughter (age 18) and son-in-law (age 22). The son-in-law (John) is a full-time student at a local university, while the daughter (Irene) holds var...

Q: Charlotte (age 40) is a surviving spouse and provides all

Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her. She also maintains the house- hold in which her parents live and furnished 60% of...

Q: Morgan (age 45) is single and provides more than 50

Morgan (age 45) is single and provides more than 50% of the sup- port of Rosalyn (a family friend), Flo (a niece, age 18), and Jerold (a nephew, age 18). Both Rosalyn and Flo live with Morgan, but Jer...

Q: Bob and Carol have been in and out of marital counseling for

Bob and Carol have been in and out of marital counseling for the past few years. Early in 2015, they decide to separate. However, because they are barely able to get by on their current incomes, they...

Q: Which of the following individuals are required to file a tax return

Which of the following individuals are required to file a tax return for 2015? Should any of these individuals file a return even if filing is not required? Why or why not? a. Patricia, age 19, is a s...

Q: In the current year, Pelican, Inc., incurs $50

In the current year, Pelican, Inc., incurs $50,000 of nondeductible fines and penalties. Its depreciation expense is $245,000 for financial statement purposes and $310,000 for tax purposes. How is thi...

Q: Roy and Brandi are engaged and plan to get married. During

Roy and Brandi are engaged and plan to get married. During 2015, Roy is a full-time student and earns $9,000 from a part-time job. With this income, student loans, savings, and nontaxable scholarships...

Q: Jayden calculates his 2015 income tax by using both the Tax Tables

Jayden calculates his 2015 income tax by using both the Tax Tables and the Tax Rate Schedules. Because the Tax Rate Schedules yield a slightly lower tax liability, he plans to pay this amount. a. Why...

Q: Paige, age 17, is claimed as a dependent on her

Paige, age 17, is claimed as a dependent on her parents’ 2015 return, on which they report taxable income of $120,000 (no qualified dividends or capital gains). Paige earned $3,900 pet sitting and $4,...