Questions from General Taxation

Q: Lew is a practicing CPA who decides to raise bonsai as a

Lew is a practicing CPA who decides to raise bonsai as a business. Lew engages in the activity and has the following revenue and expenses: Sales …………………………………………………... $ 5,000 Depreciation on greenhou...

Q: During the 2016 tax year, Brian, a single taxpayer,

During the 2016 tax year, Brian, a single taxpayer, received $7,200 in Social Security benefits. His adjusted gross income for the year was $14,500 (not including the Social Security benefits) and he...

Q: As part of the property settlement related to their divorce, Cindy

As part of the property settlement related to their divorce, Cindy must give Allen the house that they have been living in, while she gets 100 percent of their savings accounts. The house was purchase...

Q: Scott Butterfield is self-employed as a CPA. He uses

Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott’s CPA practice is locate...

Q: Please answer the following questions regarding the taxability of Social Security:

Please answer the following questions regarding the taxability of Social Security: a. A 68-year-old taxpayer has $20,000 in Social Security income and $100,000 in tax-free municipal bond income. Does...

Q: Go to the IRS website (www.irs.gov)

Go to the IRS website (www.irs.gov) and redo Problem 1 (Chapter 3, Group 2) using the most recent interactive Schedule C (Form 1040) on the IRS website that will allow the required information to be i...

Q: Margaret started her own business in the current year and will report

Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows: Gross income ……………………………………………......... $50,000 Travel ………...

Q: Lawrence owns a small candy store that sells one type of candy

Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of can...

Q: Kevin owns a retail store, and during the current year he

Kevin owns a retail store, and during the current year he purchased $610,000 worth of inventory. Kevin’s beginning inventory was $67,000, and his ending inventory is $77,200. During...

Q: Go to the IRS website (www.irs.gov)

Go to the IRS website (www.irs.gov) and redo Problem 5, using the mos recent interactive Cost of Goods Sold Schedule on Page 2 of Schedule C (Form 1040). Print out the completed Cost of Goods Sold sch...