Questions from Taxation


Q: In January, Ms. NW projects that her employer will withhold

In January, Ms. NW projects that her employer will withhold $25,000 from her 2019 salary. However, she has income from several other sources and must make quarterly estimated tax payments. Compute the...

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Q: Firm W, which has a 32 percent marginal tax rate,

Firm W, which has a 32 percent marginal tax rate, plans to operate a new business that should generate $40,000 annual cash flow/ordinary income for three years (years 0, 1, and 2). Alternatively, Firm...

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Q: Mr. and Mrs. Brown report taxable income of $130

Mr. and Mrs. Brown report taxable income of $130,000 in 2018. In addition, they report the following. Excess Social Security Withholding Credit ………………$ 2,200 Estimate tax payments 4,000 Withholding …...

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Q: Ms. Noteboom, a single taxpayer, projects that she will

Ms. Noteboom, a single taxpayer, projects that she will incur about $13,500 of expenses qualifying as itemized deductions in both 2018 and 2019. Assuming that her standard deduction is $12,000 in both...

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Q: Ms. West is an unmarried individual. Determine if each of

Ms. West is an unmarried individual. Determine if each of the following unmarried individuals is either a qualifying child or a qualifying relative. a. Daughter Dee, age 20, is a student at State Univ...

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

Mr. and Mrs. Ohlson file a joint income tax return. Determine if each of the following unmarried individuals is either a qualifying child or a qualifying relative. a. Son Jack, age 20, lives in his pa...

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Q: Ms. Gomez earned a $91,250 salary, and

Ms. Gomez earned a $91,250 salary, and Mr. Hill earned a $171,000 salary. Neither individual had any other income, and neither can itemize deductions. a. Compute Ms. Gomez and Mr. Hill’s combined tax...

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Q: Mr. Olaf earned an $89,000 salary, and

Mr. Olaf earned an $89,000 salary, and Mrs. Olaf earned a $40,330 salary. The couple had no other income and can’t itemize deductions. a. Compute their combined tax if they choose to file separate ret...

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Q: Mr. and Mrs. Daku had the following income items.

Mr. and Mrs. Daku had the following income items. Mr. Daku’s salary ……………………………………..$52,500 Mrs. Daku’s Schedule C net profit ………………..41,800 Interest income …………………………………………….1,300 Mrs. Daku’s self-...

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Q: Greg Company agreed to pay Ms. Bilko $45,000

Greg Company agreed to pay Ms. Bilko $45,000 compensation for services performed for the company. a. Compare the income tax consequences to Greg and Ms. Bilko if she is an employee or if she is an ind...

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