Questions from Individual Taxation

Q: Simpson, age 45, is a single individual who is employed

Simpson, age 45, is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $50,000 and has incurred the following medical expenses: a. Calculate the amou...

Q: Tim is a single, cash-method taxpayer with an AGI

Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year Tim paid $1,020 with his state income tax return for the previous year. During the year, Tim had $5,400 of state inc...

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

Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $20,000 of legal services for a client. Manny typically requires his clie...

Q: Using the facts in problem 40, if Scot and Vidia earn

Using the facts in problem 40, if Scot and Vidia earn an additional $80,000 of taxable income, what is their marginal tax rate on this income? Ho1w would your answer differ if they, instead, had $80,0...

Q: What is a §481 adjustment, and what is the purpose

What is a §481 adjustment, and what is the purpose of this adjustment?

Q: Using the facts from the previous problem, when should Reese pay

Using the facts from the previous problem, when should Reese pay the bill if she expects her marginal tax rate to be 35 percent next year? 24 percent next year? Data from Problem 42: Reese, a calend...

Q: Using the facts in problem 43, what interest rate does Surething

Using the facts in problem 43, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds? Data from problem 43: Hugh has the choice between inv...

Q: All else being equal, should taxpayers prefer to exclude income or

All else being equal, should taxpayers prefer to exclude income or defer it? Why?

Q: Using the facts from the previous problem, when should Hank send

Using the facts from the previous problem, when should Hank send the bill if he expects his marginal tax rate to be 35 percent next year? 24 percent next year? Data from Problem 44: Hank, a calendar...

Q: Describe the consequences for failure to file a tax return and late

Describe the consequences for failure to file a tax return and late payment of taxes owed.