The document outlines assignments and practice problems for an accounting course focused on tax computations and concepts. Key areas covered include taxable income, marginal tax rates, dependency exemptions, and various tax-related problem sets. Students are required to submit written papers and complete calculations on income taxes, gift taxes, and estate taxes, alongside definitions and principles of tax reporting.

1. ACC 456 Week 1 Key Points
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Resource: This week's Lynda.com videos.
Write a 350- to 700-word paper describing the key points in the videos.
Explain why these key points are important.
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
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ACC 456 Week 1 Practice Problem 1-39, 1-40, 1-41,1-42,1-43
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Complete the following problems in Chapter 1:
• I:1-39
• I:1-40

2. • I:1-41
• I:1-42
• I:1-43
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
1-39
Tax Rates. Latesha, a single taxpayer, had the following income and
deductions for the tax year 2015:
• Compute Latesha’s taxable income and federal tax liability for 2015
(round to dollars).
• b.Compute Latesha’s marginal, average, and effective tax rates.
• c.For tax planning purposes, which of the three rates in Part b is the
most important?
Tax Rates. Based on the amounts of taxable income below, compute the
federal income tax payable in 2015 on each amount assuming the
taxpayers are married filing a joint return. Also, for each amount of
taxable income, compute the average tax rate and the marginal tax rate.
• a.Taxable income of $30,000.
• b.Taxable income of $100,000.
• c.Taxable income of $375,000.
• d.Taxable income of $600,000.

3. I:1-41
Marginal Tax Rate. Jill and George are married and file a joint return.
They expect to have $425,000 of taxable income in the next year and are
considering whether to purchase a personal residence that would provide
additional tax deductions of $80,000 for mortgage interest and real estate
taxes.
• a.What is their marginal tax rate for purposes of making this decision?
• b.What is the tax savings if the residence is acquired?
I:1-42
Gift Tax. Betty, a married taxpayer, makes the following gifts during the
current year (2015): $20,000 to her church, $50,000 to her daughter, and
$40,000 to her husband. What is the amount of Betty’s taxable gifts for
the current year (assuming that she does not elect to split the gifts with
her spouse)?
I:1-43
Estate Tax. Clay, who was single, died in 2015 and has a gross estate
valued at $8,500,000. Six months after his death, the gross assets are
valued at $9,000,000. The estate incurs funeral and administration

4. expenses of $125,000. Clay had debts amounting to $150,000 and
bequeathed all of his estate to his children. During his life, Clay made no
taxable gifts.
• a.What is the amount of Clay’s taxable estate?
• b.What is the tax base for computing Clay’s estate tax?
• c.What is the amount of estate tax owed if the tentative estate tax
(before credits) is $3,235,800?
• d.Alternatively, if, six months after his death, the gross assets in Clay’s
estate declined in value to $7,500,000, can the administrator of Clay’s
estate elect the alternate valuation date? What are the important factors
that the administrator should consider as to whether the alternate
valuation date should be elected?
------------------------------------
ACC 456 Week 2 Key Points (Simple Income Tax)
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Write a 350- to 700-word paper describing the key points in the videos.
Explain why these key points are important.
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
------------------------------------

5. ACC 456 Week 2 Practice Problem (I:2-30, I:2-31, I:2-33, I:2-
39, I:3-36, I:3-42, I:3-43, I:3-44)
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Complete the following problems in Chapter 2:
• I:2-30
• I:2-31
• I:2-33
• I:2-39
Complete the following problems in Chapter 3:
• I:3-36
• I:3-42
• I:3-43
• I:3-44
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.

6. I:2-30
Computation of Taxable Income. The following information relates to
Tom, a single taxpayer, age 18:
• a.Compute Tom’s taxable income assuming he is self-supporting.
• b.Compute Tom’s taxable income assuming he is a dependent of his
parents.
I:2-31
Joint Versus Separate Returns. Carl and Carol have salaries of $14,000
and $22,000, respectively. Their itemized deductions total $8,500. They
are married and both are under age 65.
• a.Compute their taxable income assuming they file jointly.
• b.Compute their taxable incomes assuming they file separate returns
and that Carol claims all of the itemized deductions.
I:2-33
Dependency Exemptions. Wes and Tina are a married couple and
provide financial assistance to several persons during the current year.
For the situations below, determine whether the individuals qualify as
Wes and Tina’s dependents. In all of the situations below, assume that
any dependency tests not mentioned have been met.
• a.Brian is age 24 and Wes and Tina’s son. He is a full-time student and
lives in an apartment near campus. Wes and Tina provide over 50% of
his support. Brian works as a waiter and earned $4,200.
• b.Same as Part a except that Brian is a part-time student.
• c.Sherry is age 22 and Wes and Tina’s daughter. She is a full-time
student and lives in the college dormitory. Wes and Tina provide over

7. 50% of her support. Sherry works part-time as a bookkeeper and earned
$5,000.
• d.Same as Part c except that Sherry is a part-time student.
• e.Granny, age 82, is Tina’s grandmother and lives with Wes and Tina.
During the current year, Granny’s only sources of income were her
Social Security of $4,800 and interest on U.S. bonds of $4,500. Granny
uses her income to pay for 40% of her total support, Wes and Tina
provide the remainder of Granny’s support.
I:2-39
Filing Status, Dependency Exemptions, and Child Credit. For the
following taxpayers, indicate which tax form should be used, the
applicable filing status, and the number of personal and dependency
exemptions available, and the number of children who qualify for the
child credit.
• a.Arnie is a single college student who earned $7,700 working part-
time. He had $200 of interest income and received $1,000 of support
from his parents.
• b.Buddy is a single college student who earned $7,700 working part-
time. He had $1,600 of interest income and received $1,000 of support
from his parents.
• c.Cindy is divorced and received $6,000 of alimony from her former
husband and earned $12,000 working as a secretary. She also received
$1,800 of child support for her son who lives with her. According to a
written agreement, her former husband is entitled to receive the
dependency exemption.

8. • d.Debbie is a widow, age 68, who receives a pension of $8,000,
nontaxable social security benefits of $8,000, and interest of $4,000. She
has no dependents.
• e.Edith is married, but her husband left her two years ago and she has
not seen him since. Edith supported herself and her daughter, age 6. She
paid all household expenses. Her income of $26,000 consisted of a
salary of $25,200 and interest of $800.
3-36
Cash and Accrual Methods. Carmen opens a retail store. Her sales
during the first year are $600,000,of which $30,000 has not been
collected at year-end. Her purchases are $400,000.She still owes
$20,000 to her suppliers, and at year-end she has $50,000 of inventory
on hand. She incurred operating expenses of $160,000. At year-end she
has not paid $15,000 of the expenses.
• a.Compute her net income from the business assuming she elects the
accrual method.
• b.Compute her net income from the business assuming she elects the
cash method.
• c.Would paying the $15,000 she owes for operating expenses before
year-end change her net income under accrual method of reporting?
Under the cash method?
3-42

9. Rental Income. Ed owns Oak Knoll Apartments. During the year, Fred, a
tenant, moved to another state. Fred paid Ed $1,000 to cancel the two-
year lease he had signed. Ed subsequently rented the unit to Wayne.
Wayne paid the first and last months’ rents of $800 each and a security
deposit of $500. Ed also owns a building that is used as a health club.
The club has signed a fifteen-year lease at an annual rental of $17,000.
The owner of the club requested that Ed install a swimming pool on the
property. Ed declined to do so. The owner of the club finally constructed
the pool himself at a cost of $15,000. What amount must Ed include in
gross income?
3-43
Gross Income. Susan’s salary is $44,000 and she received dividends of
$600. She received a statement from SJ partnership indicating that her
share of the partnership’s income was $4,000. The partnership
distributed $1,000 to her during the year and $600 after yearend. She
won $2,000 in the state lottery and spent $50 on lottery tickets. Which
amounts are taxable?
3-44
Interest Income. Holly inherited $10,000 of City of Atlanta bonds in
February. In March, she received interest of $500, and in April she sold
the bonds at a $200 gain. Holly redeemed Series EE U.S. savings bonds
that she had purchased several years ago. The accumulated interest
totaled $800. Holly received $300 of interest on bonds issued by the City
of Quebec, Canada. What amount, if any, of gross income must Holly
report?
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ACC 456 Week 2 Short Response (1-5, 1-6, 1-7, 2-1, 2-4, 3-11,
3-15)

10. For more course tutorials visit
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Respond to the following questions in 45-90 words each.
• Chapter 1: I:1-5,I:1-6, and I;1-7
• Chapter 2: I:2-1 and I:2-4
• Chapter 3: I:3-11 and I:3-15
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
I:1-5
Carmen has computed that her average tax rate is 16% and her marginal
tax rate is 25% for the current year. She is considering whether to make
a charitable contribution to her church before the end of the tax year.
Which tax rate is of greater significance in measuring the tax effect for
her decision? Explain.
I:1-6
Why are the gift and estate taxes called wealth transfer taxes? What is
the tax base for computing each of these taxes?
I:1-7

11. Cathy, who is single, makes gifts of $50,000 to each of her two adult
children.
• a.Who is primarily liable for the gift tax on the two gifts, Cathy or the
two children?
• b.If Cathy has never made a taxable gift in prior years, is a gift tax due
on the two gifts?
2-1
• a.
The tax law refers to gross income, yet the term gross income is not
found on Form 1040. Explain.
• b.Why is it important to understand the concept of gross income even
though the term is not found on Form 1040?
2-4
List the conditions that must be met in order to claim a dependency
exemption for qualifying children and qualifying relatives. Briefly
explain each one.
3-11
Ricardo owns a small unincorporated business. His 15-year-old daughter
Jane works in the business on a part-time basis and was paid wages of
$3,000 during the current year. Who is taxed on the child’s earnings:
Jane or her father? Explain.

12. 3-15
• a.Explain the difference between the treatment of prepaid income
under the tax law and under financial accounting.
• b.Why are the two treatments so different?
• c.What problem does this treatment create for taxpayers?
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ACC 456 Week 3 Key Points
For more course tutorials visit
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Write a 350- to 700-word paper.
Explain how loopholes affect tax fairness and make the taxcodemore
complex.
Provide two examples.
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
------------------------------------
ACC 456 Week 3 Practice Problem (4-33, 4-34, 4-35, 6-33, 6-
35, 7-31, 7-40, 7-42)

13. For more course tutorials visit
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Complete the problems in Chapter 4:
• I:4-33
• I:4-34
• I:4-35
Complete the problems in Chapter 6:
• I:6-33
• I:6-35
Complete the problems in Chapter 7:
• I:7-31
• I:7-40
• I:7-42
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
4-34
Excludable Gifts. Which of the following would be includable in gross
income?

14. • a.Alice appeared on a TV quiz show and received a prize of $5,000.
• b.Bart received $500 from his employer because he developed an idea
that reduced the employer’s production costs.
• c.Chuck borrowed $500 from his mother in order to finance his last
year in college. Upon his graduation, Chuck’s mother told him he did
not have to repay the $500. She intended the $500 to be a graduation
present.
I:4-35
Life Insurance Proceeds. Don is the beneficiary of a $50,000 insurance
policy on the life of his mother, Anna. To date, Anna has paid premiums
of $16,000. What amount of gross income must be reported in each of
the following cases?
• a.Anna elects to cancel the policy and receives $20,000, the cash
surrender value of the policy.
• b.Anna dies and Don receives the face amount of the policy, $50,000.
• c.Anna dies and Don elects to receive $15,000 per year for four years.
I:4-36
Transfer of Life Insurance. Ed is the beneficiary of a $20,000 insurance
policy on the life of his mother. Because Ed needs funds, he sells the
policy to his sister, Amy, for $6,000. Amy subsequently pays premiums
of $9,000.
• a.How much income must Amy report if she collects the face value of
the policy upon the death of her mother?
• b.Would Amy have to report any income if her brother had given her
the policy? Assume the only payment she made was $9,000 for the
premiums.

15. 6-33
For or From AGI Deductions. Roberta is an accountant employed by a
local firm. During the year, Roberta incurs the following unreimbursed
expenses:
a. Identify which of these expenses are deductible and the amount that is
deductible by Roberta. Indicate whether they are deductible for or from
AGI.
b. Would the answers to Part a change if the accounting firm reimburses
Roberta for these expenses under an accountable plan?
c. Assume all of the same facts as in Part a, except that Roberta is self-
employed. Identify which of the expenses are deductible, and indicate
whether they are deductions for or from AGI.
I:6-35
Capitalization vs. Expense. Sam owns a small apartment building (this is
the only rental building Sam owns). During the year Sam incurs the
following expenditures:

16. Discuss the proper tax treatment for these expenditures.
I:7-31
Wayne and Maria file a joint tax return on which they itemize their
deductions and report AGI of $50,000. During the year they incurred
$1,500 of medical expenses when Maria broke her leg. Furthermore,
their dentist informed them that their daughter, Alicia, needs $3,000 of
orthodontic work to correct her overbite. Wayne also needs a new pair of
eyeglasses that will cost $300. What tax issues should Wayne and Maria
consider?
7-40
Deduction of Taxes. Joyce is a single, cash-method taxpayer. On April
11, 2014, Joyce paid $120 in state income taxes with her 2013 state
income tax return. During 2014, Joyce had $1,600 in state income taxes
withheld. On April 13, 2015, Joyce paid $200 with her 2014 state tax
return. During 2015, she had $2,100 in state income taxes withheld from
her paycheck. Upon filing her 2015 tax return on April 15, 2016, she
received a refund of $450 for excess state income taxes withheld. Joyce
had total AGI in 2015 and 2016 of $51,000 and $53,500, respectively. In
2015, Joyce also paid $5,500 in qualified residence interest.
• a.What is the amount of state income taxes Joyce may include as an
itemized deduction for 2014?
• b.What is Joyce’s allowed itemized deduction for state income taxes
for 2015?
• c.What is Joyce’s taxable income for 2015?
• d.What is her AGI for 2016?

17. 7-42
Deduction of Taxes. Dawn, a single, cash-method taxpayer, paid the
following taxes in 2015: Dawn’s employer withheld $5,400 for federal
income taxes, $2,000 for state income taxes, and $3,800 for FICA from
her 2015 paychecks. Dawn purchased a new car and paid $600 in sales
tax and $70 for the license. The car’s FMV was $20,000 and it weighed
3,000 pounds. The county also assessed a property tax on the car. The
tax was 2% of the car’s value and $10 per hundredweight. Dawn uses
the car 100% of the time for personal purposes. Dawn sold her house on
April 15, 2015. The county’s property tax on the home for 2015 is
$1,850, payable on February 1, 2015. The county’s real property tax
year is the calendar year. Dawn’s AGI for 2015 is $50,000 and her other
itemized deductions exclusive of taxes are $4,000 (disregard any leap
year).
• a.What is Dawn’s deduction for taxes in 2015?
• b.Where on Dawn’s tax return should she report her deduction for
taxes?
------------------------------------
ACC 456 Week 3 Short Response (4-13, 4-15 6-1, 6-13, 6-20, 7-
31, 7-32)
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18. Write your responsesto the following questions in 45-to 90- words each:
• Chapter4: I:4-13 ,I:4-15, and I;6-1
• Chapter 6: I:6-13 and I:6-20
• Chapter 7:-31 and I:7-32
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
4-13
Answer the following questions relative to employer-financed medical
and health, disability, and life insurance plans.
• a.May employers deduct premiums paid on employee insurance?
• b.Do employees have to include such premiums in gross income?
• c.Are benefits paid to the employee included in the employee’s gross
income?
4-15
• a.What are the seven major types of fringe benefits covered by Sec.
132?
• b.What tax advantage is offered relative to such benefits?
• c.Are such benefits available to employees only or may the benefits
also be offered to spouses, dependents, and retirees?
• d.Is discrimination prohibited relative to Sec. 132 benefits?
• e.What is the tax impact on the employer and employees if an
employer’s plan is discriminatory?

19. 6-1
Why is the distinction between deductions for AGI and deductions from
AGI important for individuals?
6-13
Michelle pays a CPA $400 for the preparation of her federal income tax
return. Michelle’s only sources of income are her salary from
employment and interest and dividends from her investments.
• a.Is this a deductible expense? If so, is it a deduction for or from AGI?
• b.Assume the same facts as in Part a except that in addition to her
salary and investment and dividend income, Michelle also owns a small
business. Of the $400 fee paid to the CPA, $250 is for the preparation of
her Schedule C (Profit or Loss from Business). How much, if any, of the
$400 is a deductible expense? Identify it as either for or from AGI.
6-20
Why did Congress enact the wash sale provisions?
7-31
Wayne and Maria file a joint tax return on which they itemize their
deductions and report AGI of $50,000. During the year they incurred
$1,500 of medical expenses when Maria broke her leg. Furthermore,
their dentist informed them that their daughter, Alicia, needs $3,000 of
orthodontic work to correct her overbite. Wayne also needs a new pair of
eyeglasses that will cost $300. What tax issues should Wayne and Maria
consider?
I:7-32
This year, Chuck took out a loan to purchase some raw land for
investment. He paid $40,000 for the land, and he expects that within 5

20. years the land will be worth at least $75,000. Chuck is married, and his
AGI for the year is $230,000.Chuck paid $4,300 in interest on the loan
this year. Chuck has $2,600 in interest income and $1,300 in dividend
income for the year. He plans to itemize his deductions so he can use the
interest expense to offset his investment income. What tax issues should
Chuck consider?
------------------------------------
ACC 456 Week 4 Key Points
For more course tutorials visit
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Write a 350- to 700-word paper.
Explain your perspective on how simple preparing a return might be for
an ordinary citizen.
Describe your top three requirements for creating a tax return that is
proper and maximizes the taxpayer return at the same time.
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.

21. ------------------------------------
ACC 456 Week 4 Practice Problem (5-33,5-43, 8-51, 8-56,9-49,
9-50, 13-33, 13-37)
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Complete the following problems in Chapter 5:
• I:5-33, I:5-43
Complete the following problems in Chapter 8:
• I:8-51 and I;8-56
Complete the following problems in Chapter 9:
• I:9-49 and I:9-50
Complete the following problems in Chapter 13:
• I:13-33 and I:13-37
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
I:5-33

22. Amount Realized. Tracy owns a nondepreciable capital asset held for
investment. The asset was purchased for $250,000 six years earlier and
is now subject to a $75,000 liability. During the current year, Tracy
transfers the asset to Tim in exchange for $94,000 cash and a new
automobile with a $50,000 FMV to be used by Tracy for personal use;
Tim assumes the $75,000 liability. Determine the amount of Tracy’s
LTCG or LTCL.
I:5-43
Marginal Tax Rates. Mr. and Mrs. Dunbar have taxable income of
$260,000 without considering the following sales. Consider the
following independent cases where capital gains are recognized and
determine the marginal tax rate for the capital gain in each case. Ignore
the effect of increasing AGI on deductions.
• CASE A: $10,000 gain from sale of Storm Lake common stock held
for seven months.
• CASE B: $10,000 gain from sale of antique clock held for six years.
• CASE C: $10,000 gain from sale of Ames preferred stock held for
three years.
I:8-51
Personal-Use Casualty Losses. In the current year Ned completely
destroys his personal automobile (purchased two years earlier for
$28,000) in a traffic accident. Fortunately none of the occupants are
injured. The FMV of the car before the accident is $18,000; after the
accident it is worthless. Ned receives a $14,000 settlement from the
insurance company. Later in the same year his house is burglarized and
several antiques are stolen. The antiques were purchased a number of
years earlier for $8,000. Their value at the time of the theft is estimated
at $12,000. They are not insured. Ned’s AGI for the current year is

23. $60,000. What is the amount of Ned’s deductible casualty loss in the
current year, assuming the thefts are discovered in the same year?
I:8-56
Net Operating Loss Deduction. Michelle and Mark are married and file a
joint return. Michelle owns an unincorporated dental practice. Mark
works part-time as a high school math teacher, and spends the remainder
of his time caring for their daughter. During 2015, they report the
following items:
I:9-49
Employment-Related Expenses. Mike incurs the following employment-
related expenses in the current year:
I:9-50
Travel and Entertainment. Monique is a self-employed manufacturer’s
representative (i.e., an independent contractor) who solicits business for
numerous clients and receives a commission based on sales. She incurs
the following expenditures during the current year:
I:13-33
Sec. 1231 Gains and Losses. Vivian’s AGI is $40,000 without
considering the gains and losses below. Determine her revised AGI after
the inclusion of any applicable gains or losses for the following
independent cases. Assume she has no nonrecaptured net Sec. 1231
losses at the beginning of the year.
Mike’s AGI is $120,000 before any of the above expenses are deducted.
None of the expenses listed above are reimbursed by Mike’s employer.
He has no other miscellaneous itemized deductions and does not use the
standard deduction.

24. • a.What is the amount of Mike’s deduction for employment-related
expenses?
• b.How are these items reported in Mike’s tax return?
I:13-37
Ordinary Income Versus Sec. 1231 Gain. At the beginning of 2015,
Silver Corporation has a $95,000 capital loss carryforward from 2014.
During 2015, the corporation sells land, held for four years, and realizes
an $80,000 gain. Silver has no unrecaptured net Sec. 1231 losses, and it
made no other sales during the current year. Determine the amount of
capital loss carryforward that Silver can use in 2015 if the land is:
• a.Sec. 1231 property.
• b.Not a capital asset or Sec. 1231 property.
------------------------------------
ACC 456 Week 4 Short Response (5-1, 5-7, 8-5, ,8-14, 9-4, 9-6,
13-3, 13-11)
For more course tutorials visit
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Write a response to the following questions in 45-to 90- words each:
• Chapter 5: I:5-1 and I:5-7
• Chapter 8: I:8-5 and I:8-14
• Chapter 9: 9:-4 and I:9-6

25. • Chapter 13 I:13-3 and I:13-11
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
I:5-1
What problem may exist in determining the amount realized for an
investor who exchanges common stock of a publicly traded corporation
for a used building? How is the problem likely to be resolved?
I:5-7
Martha owns 500 shares of Columbus Corporation common stock at the
beginning of the year with a basis of $82,500. During the year,
Columbus declares and pays a 10% nontaxable stock dividend. What is
her basis for each of the 50 shares received?
I:8-5
What two general requirements must be met for a transaction to result in
a capital loss?
I:8-14
Explain the difference between materially participating and actively
participating in an activity. When is the active participation test used?
I:9-4

26. In each of the following cases involving travel expenses, indicate how
each item is reported on the taxpayer’s tax return. Include any
limitations that might affect its deductibility.
• a.Marilyn lives in Houston and owns several rental properties in
Denver. To supervise the management of these properties, Marilyn
incurs travel expenses including airfare, lodging, and meals while
traveling to and from the location of the rental properties.
• b.Marc is an employee who incurs travel expenses as a salesperson.
The expenses are fully reimbursed by his employer after an adequate
accounting has been made.
• c.Assume the same facts as in Part b, except that the expenses are not
reimbursed.
• d.Kay is a self-employed attorney who incurs travel expenses
(including meals) to prepare a court case in a nearby city where she
spends the night.
I:9-6
Latoya, a college professor, takes a nine-month leave of absence from
her employment at a college in Ohio and accepts a visiting professorship
(temporary assignment) at a college in Texas. Latoya leaves her husband
and children in Ohio and incurs the following expenses in connection
with the temporary assignment:
I:13-3
Alice owns timber, purchased six years ago, with an adjusted basis of
$50,000. The timber is cut for use in her furniture business on October 1,
when the FMV of the timber is $200,000.The FMV of the timber on
January 1 is $190,000. May Alice treat any of the gain as Sec. 1231
gain? If so, how much?
I:13-11

27. Karen purchased a computer three years ago for $15,300 to use
exclusively in her business. She expensed the entire cost of the computer
under Sec. 179. If she sells the computer during the current year for
$3,721, what is the amount and character of her recognized gain?
------------------------------------
ACC 456 Week 5 Key Points
For more course tutorials visit
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Write a 350-to 700-word paper.
Explain your perspective on tax planning.
Define and differentiate tax avoidance and tax evasion.
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Microsoft® Word document
------------------------------------
ACC 456 Week 5 Practice Problem (10-5, 11-37, 11-41, 12-36)

28. For more course tutorials visit
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Complete the following problem in Chapter 10:
• I:10-5
Complete the following problems in Chapter 11:
• I:11-37
• I:11-41
Complete the following problems in Chapter 12:
• I:12-36
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
I:10-5
Robert is a sole proprietor who uses the calendar year as his tax year. On
July 20, 2015 he acquired and placed in service a business machine, a 7-
year asset, for $50,000. No other property was acquired in 2015.
• a.What is the amount of depreciation allowed in 2015 and 2016 if Sec.
179 depreciation (first-year expense election) was not elected?

29. • b.What is the amount of depreciation allowed in 2015 and 2016 if Sec.
179 was elected?
I:11-37
Allowable Taxable Year. For each of the following cases, indicate
whether the taxpayer has selected an allowable tax year in an initial year.
If the year selected is not acceptable, indicate what an acceptable year
would be.
• a.A corporation selects a January 15 year-end.
• b.A corporation selects a March 31 year-end.
• c.A corporation selects a year that ends on the last Friday in March.
• d.A partnership selects a year that ends on December 31 and has three
equal partners whose years end on March 31, April 30, and June 30.
• e.An S corporation selects a December 31 year-end.
I:11-41
Cash Basis Expenses. How much of the following expenses are currently
deductible by a cash basis taxpayer?
• a.Medical prescriptions costing $20 paid by credit card (medical
expenses already exceed the 10% of AGI floor).
• b.Prepaid interest (not related to points) of $200 on a residential loan.
• c.Taxpayer borrows $300 from the bank to make a charitable
contribution. The $300 is paid to the charitable organization before the
end of the tax year.
• d.Taxpayer gives a note to his church indicating an intent to contribute
$300.

30. • e.A calendar-year individual mails a check for $200 to his church on
December 31. The check is postmarked December 31 and clears the
bank on January 4.
I:12-36
Like-Kind Exchange: Related Parties. Bob owns a duplex used as rental
property. The duplex has a basis of $86,000 and $300,000 FMV. He
transfers the duplex to Cindy, his sister, in exchange for a triplex that she
owns. The triplex has a basis of $279,000 and a $300,000 FMV. Two
months after the exchange, Cindy sells the duplex to a business associate
for $312,000. Determine:
• a.Bob’s realized and recognized gain on the exchange.
• b.Cindy’s realized and recognized gain on the exchange.
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ACC 456 Week 5 Summary Of Learning
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Write a 350- to 700-word summary of the concepts you learned in this
class. Include the following:
Summarize at least three key concepts that were new to you.

31. Describe at least one concept of which you need to gather more
information.
Apply the information to the "real world". How will you use the
information you learned to better yourself professionally?
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Microsoft® Word document.
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