Questions from Taxation

Q: Mr. Gilly is the PFO of Petro Inc. This year

Mr. Gilly is the PFO of Petro Inc. This year, his compensation package was $625,000. Petro paid him a $500,000 salary during the year and accrued an unfunded liability to pay him the $125,000 balance...

Q: Refer to the facts in the preceding problem. Petro Inc.

Refer to the facts in the preceding problem. Petro Inc. pays $125,000 deferred compensation to Mr. Gilly in 2025, the year of his retirement. a. How much compensation income does Mr. Gilly recognize i...

Q: This year, Mrs. Bard, who is head of Lyton

This year, Mrs. Bard, who is head of Lyton Industries’s accounting and tax department, received a compensation package of $360,000. The package consisted of a $300,000 current salary and $60,000 defer...

Q: Refer to the facts in the preceding problem. Assume Mrs.

Refer to the facts in the preceding problem. Assume Mrs. Bard retires in 2023 and receives her first $20,000 payment from Lyton Industries. a. How much compensation income does Mrs. Bard recognize in...

Q: Company EJ plans to build a new plant to manufacture bicycles.

Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $400 per bike. It could locate the plant in Province P, which levies a 20 percent tax on bu...

Q: Marlo, a publicly held corporation with a 21 percent tax rate

Marlo, a publicly held corporation with a 21 percent tax rate, has agreed to pay an annual salary of $1.3 million to its employee, Mrs. Ryman. In each of the following cases, compute Marlo’s after-tax...

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

Mr. and Mrs. Weiss had the following income items. Mr. Weiss’s salary …………………………………………………$105,000 Mrs. Weiss’s earnings from self-employment ……………50,000 The income tax deduction for Mrs. Weiss’s SE...

Q: What is the maximum IRA contribution that Mr. Janson can make

What is the maximum IRA contribution that Mr. Janson can make under each of the following assumptions? a. He is age 20 and single. His only income item is $13,200 interest from a trust fund. b. He is...

Q: Mr. and Mrs. Davos file a joint tax return.

Mr. and Mrs. Davos file a joint tax return. Each spouse contributed $3,800 to a traditional IRA. In each of the following cases, compute the deduction for these contributions. The AGI in each case is...

Q: Mr. and Mrs. Marlo file a joint tax return.

Mr. and Mrs. Marlo file a joint tax return. Each spouse contributed $5,000 to a traditional IRA. In each of the following cases, compute the deduction for these contributions. The AGI in each case is...