Questions from General Taxation

Q: Firm F is a cash basis legal firm. In 2018,

Firm F is a cash basis legal firm. In 2018, it performed services for a client, mailed the client a bill for $6,150, and recorded a $6,150 receivable. In 2019, Firm F discovered that the client was un...

Q: Ms. Cross didn’t request an extension of time to file her

Ms. Cross didn’t request an extension of time to file her 2018 income tax return and didn’t mail the completed return to the IRS until August 8, 2019. She enclosed a check for $2,380, the correct bala...

Q: Univex is a calendar year, accrual basis retail business. Its

Univex is a calendar year, accrual basis retail business. Its financial statements provide the following information for the year. Revenues from sales of goods …………………………………………………………. $783,200 Cost o...

Q: Tom and Allie Benson (ages 53 and 46) are residents

Tom and Allie Benson (ages 53 and 46) are residents of Fort Worth, Texas, and file a joint federal income tax return. They provide the entire support for their two children, ages 19 and 17. On the bas...

Q: Blake and Valerie Meyer (both age 30) are married with

Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). On the basis of the following information, compute the Meyers’ 2019 federal income tax (including any AMT) on their...

Q: Mrs. Cora Yank (age 42) is divorced and has

Mrs. Cora Yank (age 42) is divorced and has full custody of her 10- year-old son, William. From the following information, compute Mrs. Yank’s 2019 federal income tax (including any AMT) and the amoun...

Q: Conduct a search on the Internet to find a brief description of

Conduct a search on the Internet to find a brief description of the flat tax. Write a short paragraph describing the flat tax and explaining how it differs from the federal individual income tax.

Q: The next time you buy groceries in a supermarket, study your

The next time you buy groceries in a supermarket, study your receipt. Which items that you purchased were subject to your state’s sales tax, and which items were exempt from sales tax?

Q: Visit the website for the Congressional Budget Office (www.cbo

Visit the website for the Congressional Budget Office (www.cbo.gov), follow the link to Budget and Economic Information, and look up the most current Monthly Budget Review. What is the CBO’s estimate...

Q: Visit the website for the Tax Foundation (www.taxfoundation.

Visit the website for the Tax Foundation (www.taxfoundation.org). Select the link “About Us” to read the organization’s mission statement. Select the link “Tax Topics” to research the following: a. Wh...