ACCT 553 Federal Taxes and Management Entire Course
ACCT 553 Week 1 Homework
· 3-31. 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 Homework
· 4/25 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 Homework
· 1. 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)
· 3. 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 materiallyparticipates 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 Homework
· 1. 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.)
ACCT 553 Week 5 Homework
1. Please explain how charitable contributions come into play in determining “corporate” taxable income. (5 pts)
2.What happens to a loss on the corporate tax return (Form 1120)?Does it pass through to the shareholders? Is it available for future or past periods? Please explain in detail. (5 pts.)
3.Please describe the purpose of Schedules M-1 and M-3. When is a Schedule M-3 required in lieu of a Schedule M-1? (5 pts.)
4.Please define and differentiate between a spin-off, split-off, and split-up. (5 pts.)
· 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?
· 1. Identify and briefly describe the seven types of corporate reorganization.
ACCT 553 Week 6 YouDecide
· Penelope, Mark, and John Entity Selection: After 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.