Questions from Taxation

Q: Corporation R signed a contract to undertake a transaction that will generate

Corporation R signed a contract to undertake a transaction that will generate $360,000 total cash to the corporation. The cash will represent income in the year received and will be taxed at 21 percen...

Q: Mr. and Mrs. Chaulk have three dependent children, ages

Mr. and Mrs. Chaulk have three dependent children, ages 3, 6, and 9. Compute their child credit if AGI on their joint return is: a. $88,300. b. $462,700 c. $200,000 and assume that they have one non-c...

Q: Mr. and Mrs. Alexander have two dependent children. They

Mr. and Mrs. Alexander have two dependent children. They paid $7,200 wages to a housekeeper to care for the children and $549 employer payroll tax on her wages. Mr. and Mrs. Alexander file a joint ret...

Q: Mr. and Mrs. Coulter have four dependent children, ages

Mr. and Mrs. Coulter have four dependent children, ages 1, 4, 7, and 11. Mr. Coulter’s salary was $21,400, Mrs. Coulter’s wages totaled $16,200, and the couple had no other income or above-the-line de...

Q: On March 31, Mr. Reinhardt quit his job with MT

On March 31, Mr. Reinhardt quit his job with MT Inc. and began a new job with PK Company. His salary from MT was $82,600, and his salary from PK was $93,000. Compute his excess Social Security tax wit...

Q: Mr. and Mrs. Keppner file a joint income tax return

Mr. and Mrs. Keppner file a joint income tax return. Compute their standard deduction assuming that: a. Mr. Keppner is age 68, and Mrs. Keppner is age 60. b. Mr. Keppner is age 70, and Mrs. Keppner is...

Q: Mr. and Mrs. Lovejoy are married with no dependent children

Mr. and Mrs. Lovejoy are married with no dependent children. Mr. Lovejoy worked for Smart Tech Corporation January through March and for Computer Associates the remainder of the year. Mrs. Lovejoy fin...

Q: Mr. and Mrs. Kigali’s AGI (earned income) was

Mr. and Mrs. Kigali’s AGI (earned income) was $14,610. Their federal income tax withholding was $850. They had no itemized deductions and two dependent children, ages 18 and 19. If Mr. and Mrs. Kigali...

Q: In each of the following cases, compute AMT (if any

In each of the following cases, compute AMT (if any). For all cases, assume that taxable income does not include any dividend income or capital gain. a. Mr. and Mrs. Baker’s taxable income on their jo...

Q: Jaclyn Biggs, who files as a head of household, never

Jaclyn Biggs, who files as a head of household, never paid AMT before 2018. In 2018, her regular tax liability was $102,220 which included 39,900 capital gain taxed at 20 percent, and her AMTI in exce...