Questions from General Taxation

Q: Darren paid the following expenses during November 2019 for his son Sean’s

Darren paid the following expenses during November 2019 for his son Sean’s college expenses for the spring 2020 semester, which begins in January 2020: Tuition  $ 12,000  Housing  $ 8,000 ...

Q: Sam owns all of the stock in a newly formed corporation.

Sam owns all of the stock in a newly formed corporation. During 2019, the first year of operation, the corporation realized current earnings and profits of $10,000. Sam received a $12,000 distribution...

Q: Adenike has two jobs and earned $115,000 from her

Adenike has two jobs and earned $115,000 from her first job and $20,000 from her second job. How much total FICA taxes will Adenike have withheld from her wages from working two jobs? a. $9,945.00. b...

Q: Carlos earned a total of $236,000 for 2019.

Carlos earned a total of $236,000 for 2019. How much in FICA tax will his employer be required to withhold in his name? a. $11,448.30. b. $11,661.80. c. $11,706.80. d. $11,985.80

Q: Dewoun has two jobs, and both employers withheld FICA tax.

Dewoun has two jobs, and both employers withheld FICA tax. From his first job, he earned $104,110, and from his second job, he earned $30,300. How much can Dewoun claim as an additional payment on his...

Q: Erica earned $133,800 during 2019. How much will

Erica earned $133,800 during 2019. How much will her employer withhold from her, in total, for FICA taxes? a. $9,842.90. b. $10,179.90. c. $10,222.65. d. $10,235.70.

Q: Terri is single and age 32. She reported AGI of $

Terri is single and age 32. She reported AGI of $70,000 in tax year 2019. She is an active participant in her employer’s pension plan. What is the maximum deductible IRA contribution she can make in 2...

Q: Ed and Cathy, both under age 50, file a joint

Ed and Cathy, both under age 50, file a joint return. Neither is covered under an employer pension plan. Cathy earned compensation of $53,000 in 2019. Ed worked part time and earned $1,200. What is th...

Q: Lauer Company started its business on July 25, 2019. On

Lauer Company started its business on July 25, 2019. On August 9 it paid wages for the first time and accumulated a tax liability of $48,000. On Friday, August 16, it incurred a tax liability of $52,0...

Q: Patrice is single and age 26. She reported AGI of $

Patrice is single and age 26. She reported AGI of $68,000 in tax year 2019. She is an active participant in her employer’s pension plan. What is the maximum deductible Roth IRA contribution she can ma...