ACCT 553 Federal Taxes and Management

ACCT 553 Week 1 HomeworkACCT 553 Week 2 HomeworkACCT 553 Week 3 HomeworkACCT 553 Week 4 Assignment; YouDecideACCT 553 Week 4 HomeworkACCT 553 Week 5 HomeworkACCT 553 Week 6 Assignment: YouDecideACCT 553 Week 8 Final Exam

ACCT 553 All Homework Week 1, 2, 3, 4, 5, 6 and Final ExamPrice: $ 65 - Add to Cart

ACCT 553 Week 4 + Week 6 YouDecidePrice: $ 25 - Add to Cart

ACCT 553 All Homework Week 1, 2, 3, 4, 5, 6Price: $ 45 - Add to Cart ACCT 553 Week 1 Homework3-31.Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $12,250 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2012?3-32.Compute Marie's taxable income for 2012, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000, and she has itemized deductions of $9,000.3-36.Compute Stanley's taxable income for 2012, assuming he has $1,000 in wages from working in a grocery store and $2,000 in interest income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents' return.13-55.Mr. Z, a non-dealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2012. Relevant data include:13-69. Comprehensive Problem. Bill is a cash-basis, calendar-year taxpayer. Which of the following December items result in gross income or deductions for the current year?

ACCT 553 Week 2 Homework4/25 Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2012:...............

4/32 Arnold and Barbara Cane were divorced in June 2012. Pursuant to the divorce decree, Arnold is obliged to perform as follows:.............

5/26 Fluent, an investor in stocks and bonds, wanted to increase his portfolio but wanted to minimize his tax liability on the income from the bonds. He is presented with the following alternative investments: U.S. Series EE bonds, bonds for industrial development for mass transit, and qualified veterans' mortgage bonds. Which should he choose for his investment? Why?......................

6/29 Which of the following trade or business expenditures of Ajax Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction........................

6/34 For the current month, Jackson Cement Co. incurred payroll expenses as follows:.................

ACCT 553 Week 3 HomeworkChapter 71. In your "own" words, please describe what a "Suspended Loss" is, how it is generated and when it is becomes deductible. (5 pts)2. Please describe "Active Participation" as it relates to a taxpayer's involvement in an investment in Real Estate. (5 pts).Chapter 83.   Macy had a lot of medical expenses this year that were not covered by her insurance (either due to a deductible, co-insurance, or co-pay).   Her un-reimbursed qualifying medical expenses total $8,356 and her AGI for 2013 is $45,000.   Assuming she will itemize on her 2013 tax return, how much of her medical expenses will she be able to deduct? (5 pts)4. Heather & Terry have a mortgage on their primary residence of $750,000 and a mortgage on their vacation home of $410,000.   In 2013, they incurred $46,400 of mortgage interest expense.   How much, if any, of that interest is deductible on Schedule A? (5 pts)7-7 Differentiate between the following: active income, passive income, and portfolio income.7-13 Briefly, what is "material participation"? Why is the determination of whether a taxpayer materially participates important?7-46 Mary Beth is a CPA, devoting 3,000 hours per year to her practice. She also owns an office building in which she rents out space to tenants. She devotes none of her time to the management of the office building. She has a property management firm make all management decisions for her. During 2012, she incurred a loss, for tax purposes, of $30,000 on the office building. How must Mary Beth treat this loss on her 2012 tax return?

ACCT 553 Week 4 HomeworkPage 1Chapter 141. Please describe the concept of "double taxation" and discuss which entity(ies) are subject to this type of taxation. (5 pts)

2. What type of taxpayers are considered "eligible" taxpayers with regard to special ordinary loss treatment of IRC Section 1244 stock? (5 pts.)

3. Please describe how the treatment of capital gains(losses) differ for a C Corporation as compared to an Individual. ( 5 pts.)

4. Please describe the concept of "Depreciation recapture". ( 5 pts.)

Page 24. What is the purpose of Code Sec. 351 in regard to transfers to corporations?20. What tax years are available to corporations? How do the options differ from other forms of business organizations?22. What are the differences in the treatment of capital gains and capital losses of corporations and of individuals?55. Susan Sweets is a 40 percent shareholder in Acclaim Inc., a theatrical supplies company. She transfers a fully depreciated car with a value of $2,000 to the corporation, but does not receive any consideration for it.a. What are the tax consequences to Susan?b. What are the tax consequences to the corporation?c. What, if any, changes if Susan received another 10 percent stock interest for the car?62. A corporation has income of $62,000 from operations and a net long-term capital loss of $5,000. What is the corporation's taxable income for the year?

ACCT 553 Week 5 HomeworkChapter 14:24. What is the purpose of the dividends received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction?51. What is the purpose of the reconciliation of taxable income with book income?52. Sam Rogers forms a corporation. Sam transfers to the corporation property having a basis to him of $15,000 and a fair market value of $27,000 for 900 shares of the $10 par stock of the corporation. A year later, Bill Morrison, who is not related to Sam, transfers property having a basis to him of $1,000 and a fair market value of $3,000 for 100 shares of the corporate stock. The corporation issued no other stock.

a. How much gain does Sam recognize on his exchange? What is the basis to Sam of his 900 shares?

b. How much gain does Bill recognize on his exchange? What is the basis to Bill of his 100 shares?

c. What gain or loss is recognized by the corporation when it issues its shares to Sam? What is the basis to the corporation of the property it received from Sam?

d. What is the gain or loss recognized by the corporation when it issues its shares to Bill? What is the basis to the corporation of the property it received from Bill?

Chapter 17:1. Identify and briefly describe the seven types of corporate reorganization.

ACCT 553 Week 6 HomeworkTax Memo #2-Executive CompensationIssue One and Applicable Case Law, Code & RegulationsIssue Two and Applicable Case Law, Code & RegulationsIssue Three and Applicable Case Law, Code & Regulations

Penelope, Mark, and John Entity SelectionAfter 20+ years of working for other firms, Penelope (Enrolled Agent, age 41), Mark (CPA, age 43) and John (CVA, age 65) want to leave the firms they are currently employed by and become their own bosses. Penelope specializes in Taxes, Mark is the Auditor and John is a Business Valuation expert.There are so many options available to how they can structure the new business(s). The appropriate business entity for any individual(s) will depend on their particular facts and circumstances.You are a valued colleague and friend of this three-some and they have come to you seeking advice as to how to structure their new business. They have the knowledge to figure it out themselves, but are looking for the advice of an unbiased 3rd party. Please consider the following tax and non-tax considerations as you recommend an entity choice to Penelope, Mark and John.

ACCT 553 Week 8 Final ExamPrice: $ 35 - Add to Cart Page: 1 – Multiple Choice1. (TCO E) For federal tax purposes, income attributable to the direct efforts of the tax payer, such as salary, is classified as: (Points : 5) 2. (TCO D) Which of the following is an example of a nontaxable like-kind exchange? (Points : 5) 3. (TCO H) Alex and Amy file a joint return for the 2012 tax year. Their adjusted gross income is $90,000. They had net investment income of $8,000. In 2012, they had the following interest expenses: • Personal credit card interest: $5,000 • Home mortgage interest: $10,000 • Interest paid on qualified education loans: $2,000 • Investment interest (on loans used to buy stocks): $10,000 What is the interest deduction for Alex and Amy for the 2012 tax year? (Points : 5) 4. (TCO B) Unreimbursed expenses of employees are considered to be deductions: (Points : 5) 5. (TCO A) Which of the following expenditures is always an itemized deduction for individual taxpayers? (Points : 5) 6. (TCO E) Adam sold a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Adam received $80,000 cash and a painting with a fair market value of $20,000 from the buyer. The buyer also assumed Adam's $25,000 loan on the equipment. Adam paid $5,000 in selling expenses. What is the amount of Adam's gain on the sale? (Points : 5) 7. (TCO I) Gary and Gerdy Gray purchased a home for $125,000 on September 15, 2010. On October 7, 2011 they were divorced, and as part of the divorce agreement, the home was transferred to Gerda, who sold the home on October 18, 2012 for $350,000. How much can Gerda exclude? (Points : 5) 8. (TCO I) Under the accrual method of accounting, expenses are generally accrued when: (Points : 5) 9. (TCO D) Sean, a calendar year taxpayer, purchased stock on June 18, 2011 for $8,000. The stock became worthless on June 4, 2012. What is Sean's loss in 2012? (Points : 5) $8,000 short-term capital loss10. (TCO A) Which of the following is a primary source of tax authority? (Points : 5) 11. (TCO F) A nonbusiness bad debt is deductible for tax purposes as a(n): (Points : 5) 12. (TCO A) The art of using existing tax laws to pay the least amount of tax legally possible is

known as: (Points : 5) 13. (TCO C) Which of the following items is not taxable? (Points : 5) 14. (TCO B) Under the terms of their divorce agreement executed in October 2011, Keith transferred Corporation M stock to his former wife, Karen, as a property settlement. At the time of the transfer, the stock had a basis to Keith of $20,000 and a fair market value of $50,000. What is the tax consequence of this transaction to Keith, and what is Karen's basis in the Corporation M stock? (Points : 5) 15. (TCO G) During 2012, Edward East had wages of $10,000 and received unemployment compensation of $6,200 from the state. Edward is single and 45 years old. What is the amount of unemployment compensation to be included in his gross income? (Points : 5) 16. (TCO F) Hobby expenditures are deductible to the extent of: (Points : 5) Page: 1 - Essays1. (TCO E) In 2012, Uriah Stone received the following payments:• Interest on refund of federal income tax for 2011: $400• Interest on award for personal injuries in 2009 automobile accident: $300• Interest on municipal bonds: $1,500• United States savings bonds interest (Series H): $1,000What amount, if any, should Mr. Stone report as interest income on his 2012 tax return?2. (TCO G) Would any of the following items be deductible on an individual's income tax return? If so, would the item be deductible for or from AGI? Explain each item.(a) Hobby expenditures of $2,000 in excess of hobby gross income(b) $3,000 loss on the sale of a personal sailboat(c) Interest of $8,000 on money borrowed to purchase tax-exempt securities (Points : 17)3. (TCO F) Michael and Mary Mason sold for $380,000 in November of 2012 their residence that they had purchased in 2002 for $75,000. They made major capital improvements during their 10-year ownership totaling $25,000.(a) What is their excluded gain? How much must they recognize?(b) Suppose, instead, that the Masons sold their home for $720,000. They moved into a smaller house costing $220,000. What is their excluded gain? How much must they recognize? (Points : 17)4. (TCO G) John Baron, a professional baseball player, raises Black Angus cattle under circumstances that would indicate that the activity is a hobby. His adjusted gross income for the year is $50,000, and he has $500 of other miscellaneous itemized deductions, all of which are subject to the two-percent floor. During the taxable year, the feed for the cattle cost $1,500. The income from the sale of cattle was $1,400.(a) Under the hobby loss rule, to what extent is the expense of $1,500 deductible?(b) Under the two-percent-of-adjusted-gross-income limitation, how much is the overall deductible amount of his itemized deductions? 5. (TCO I) Rick, a single individual with a salary of $45,000, incurred and paid the following expenses during the year:Student loan interest: $800Medical expenses: $5,000Alimony: $11,000Mortgage interest on personal residence: $3,000State income taxes: $4,000Moving expenses: $1,500Contribution to a traditional IRA: $2,000Analyze the above expenses, and determine which ones are deductible for AGI. Please support your position. 6. (TCO I) Kim had the following transactions for 2012:Salary: $48,000Damage award (compensatory) for city bus accident: $18,000Loss on sale of stock investment: $5,600Loan from father to purchase auto: $14,000Alimony paid to ex-wife: $8,000What is Kim's AGI for 2012? 7. (TCO F) Sara owns a sole proprietorship, and Phil is the sole shareholder of a C (regular) corporation. Each business sustained a $9,000 operating loss and a $2,000 capital loss for the year. Evaluate how these losses will affect the taxable income of the two owners? (Points : 17)8. (TCO B) Dave forms a corporation and transfers property having a basis to him of $22,000 and a fair market value of $29,000 to the corporation for 1,000 shares of $11 par stock. One year later, Hank transfers property having a basis to him of $3,500 and a fair market value of $4,500 for 100 shares of the stock. Hank is not related to Dave. The corporation issued no other stock.(a) How much gain does Dave recognize on his exchange? What is the basis to Dave of his 1,000 shares?(b) What gain or loss is recognized by the corporation when it issues its shares to Dave? What is the basis to the corporation of the property it received from Dave?(c) What is the gain or loss that Hank recognizes on this transaction, and what is his basis in his 100 shares? 9. (TCO F) In 2012, OK Company had a net loss of $82,000 from operations. Jane owns OK Company and works 20 hours a week in the business. She has a large amount of income from other sources and is in the 35% marginal tax bracket. Would Jane's tax situation be better if OK Company were a proprietorship or a C corporation? Explain why. 10. (TCO H) On May 18, 2012, Sara purchased 30 shares of ABC stock for $210, and on October 29, 2012, she purchased 90 additional shares for $900. On November 28, 2012, she sold 48 shares, which could not be specifically identified, for $576, and on December 8, 2012, she sold another 25 shares for $150. What is her recognized gain or loss?