Questions from Taxation

Q: This year, Gogo Inc. granted a nonqualified stock option to

This year, Gogo Inc. granted a nonqualified stock option to Mrs. Mill to buy 10,000 shares of Gogo stock for $8 per share for five years. At date of grant, Gogo stock was selling on a regional securit...

Q: In 2009, BB granted an incentive stock option (ISO)

In 2009, BB granted an incentive stock option (ISO) to Mr. Yarnell to buy 8,000 shares of BB stock at $7 per share for 10 years. At date of grant, BB stock was trading on the AMEX for $6.23 per share....

Q: Two years ago, Mrs. Erb was granted a stock option

Two years ago, Mrs. Erb was granted a stock option from her corporate employer. At date of grant, the stock was selling at $14 per share, and the strike price was $18 per share. This year, Mrs. Erb so...

Q: Mr. Evon, who has participated in his employer’s qualified defined

Mr. Evon, who has participated in his employer’s qualified defined benefit plan for 38 years, retired in June. What is his maximum annual pension benefit assuming that: a. His average compensation for...

Q: Mrs. Vacco participates in her employer’s qualified profit-sharing plan

Mrs. Vacco participates in her employer’s qualified profit-sharing plan. What is the maximum contribution to her retirement account, assuming that: a. Her annual compensation was $38,200? b. Her annua...

Q: Ms. Jost participates in her employer’s Section 401(k)

Ms. Jost participates in her employer’s Section 401(k) plan, which obligates the employer to contribute 25 cents for every dollar that an employee elects to contribute to the plan. This year, Ms. Jost...

Q: This year, Company LI built a light industrial facility in County

This year, Company LI built a light industrial facility in County G. The assessed property tax value of the facility is $20 million. To convince Company LI to locate within its jurisdiction, the count...

Q: Company XYZ manufactures a tangible product and sells the product at wholesale

Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,000 units of product and incurred $200,000 direct material cost and...

Q: MN’s compensation package for its PEO consisted of a $600,

MN’s compensation package for its PEO consisted of a $600,000 salary plus $200,000 unfunded deferred compensation. The PEO will receive the $200,000 when he retires in 2025. He is also a participant i...

Q: Ms. Calhoun is age 51 and single. What is the

Ms. Calhoun is age 51 and single. What is the maximum contribution that she can make to a Roth IRA if: a. Her AGI consists of an $89,400 salary from her employer? b. Her AGI consists of an $89,400 sal...