Questions from Individual Taxation

Q: JDD Corporation provides the following benefits to its employee, Ahmed (

JDD Corporation provides the following benefits to its employee, Ahmed (age 47): • Salary………………………………………...$300,000 • Health insurance:……………………….…$10,000 • Dental insurance:……………………………$2,000 • Life i...

Q: Gray’s employer is now offering group-term life insurance. The

Gray’s employer is now offering group-term life insurance. The company will provide each employee with $100,000 of group-term life insurance. It costs Gray’s employer $300 to provide this amount of in...

Q: Sharmilla works for Shasta Lumber, a local lumber supplier. The

Sharmilla works for Shasta Lumber, a local lumber supplier. The company annually provides each employee with a Shasta Lumber shirt so that employees look branded and advertise for the business while w...

Q: LaMont works for a company in downtown Chicago. The firm encourages

LaMont works for a company in downtown Chicago. The firm encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $260 per month....

Q: Jasmine works in Washington, D.C. She accepts a

Jasmine works in Washington, D.C. She accepts a new position with her current firm in Los Angeles. Her employer provides the following moving benefits: • Temporary housing for one month……………………………… —...

Q: Jarvie loves to bike. In fact, he has always turned

Jarvie loves to bike. In fact, he has always turned down better paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie’s current shop, Bad Dog Cycles, eac...

Q: Matt works for Fresh Corporation. Fresh offers a cafeteria plan that

Matt works for Fresh Corporation. Fresh offers a cafeteria plan that allows each employee to receive $15,000 worth of benefits each year. The menu of benefits is as follows: For each of the following...

Q: Antonio received 40 ISOs at the time he started working for Zorro

Antonio received 40 ISOs at the time he started working for Zorro Corporation six years ago (each option gives him the right to purchase 20 shares of Zorro stock for $3 per share). Zorro’s share price...

Q: North Inc. is a calendar-year C corporation, accrual

North Inc. is a calendar-year C corporation, accrual-basis taxpayer. At the end of the year 1, North accrued and deducted the following bonuses for certain employees for financial accounting purposes....

Q: Jorgensen High Tech Inc. is a calendar-year, accrual

Jorgensen High Tech Inc. is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes...