Questions from Individual Taxation

Q: Ralph operates a business that acts as a sales representative for a

Ralph operates a business that acts as a sales representative for a large firm that produces and sells precious metals to electronic manufacturers. Ralph contacts manufacturers and convinces them to s...

Q: Heather paid $15,000 to join a country club in

Heather paid $15,000 to join a country club in order to meet potential clients. This year she paid $4,300 in greens fees when golfing with clients and an additional $5,700 paid when Heather held busin...

Q: If taxpayers are not allowed to claim deductions for dependency exemptions,

If taxpayers are not allowed to claim deductions for dependency exemptions, is it necessary to determine who qualifies as a taxpayer’s dependents? Briefly explain.

Q: Assume Sarah is a cash-method calendar-year taxpayer,

Assume Sarah is a cash-method calendar-year taxpayer, and she is considering making the following cash payments related to her business. Calculate the after-tax cost of each payment assuming she has a...

Q: Renee operates a proprietorship selling collectibles over the web, and last

Renee operates a proprietorship selling collectibles over the web, and last year she purchased a building for $24 million for her business. This year, Renee’s proprietorship reported revenue of $85 mi...

Q: Nicole’s business uses the accrual method of accounting and accounts for inventory

Nicole’s business uses the accrual method of accounting and accounts for inventory with specific identification. In year 0, Nicole received a $4,500 payment with an order for inventory to be delivered...

Q: This year Amber purchased a factory to process and package landscape mulch

This year Amber purchased a factory to process and package landscape mulch. Approximately 20 percent of management time, space, and expenses are spent on this manufacturing process. a) At the end of...

Q: Reese, a calendar-year taxpayer, uses the cash method

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her...

Q: Using the facts from the previous problem, how would your answer

Using the facts from the previous problem, how would your answer change if Manny’s after-tax rate of return were 8 percent? Data from Problem 41: Manny, a calendar-year taxpayer, uses the cash metho...

Q: Louis files as a single taxpayer. In April of this year

Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under...