Peter and Eileen are married and live in a common law state. Peter wants to make gifts to their five children in 2009. What is the maximum amount of the annual exclusion they will be allowed for these gifts?
A) $60,000.
B) $65,000.
C) $120,000.
D) $130,000.
E) None of the above.
2.
Which is a primary source of tax law?
A) J. W. Yarbo v. Comm., 737 F.2d 479 (CA-5, 1984).
B) Article by a Federal judge in Harvard Law Review.
C) Technical Advice Memoranda.
D) Letter ruling.
E) All of the above are primary sources.
3.
Jerry purchased a U.S. Series EE savings bond for $279. The bond has a maturity value in 10 years of $500 and yields 6% interest. This is the first Series EE bond that Jerry has ever owned.
A) Jerry must report the interest income each year using the original issue discount rules.
B) Jerry can report all of the $221 interest income in the year the bond matures.
C) The interest on the bonds is exempt from Federal income tax.
D) Jerry must report ($500 – $279)/10 = $22.10 interest income each year he owns the bond.
E) None of the above.
4.
Home Office, Inc., leased a copying machine to a new customer on December 27, 2009. The machine was to rent for $500 per month for a period of 36 months beginning January 1, 2010. The customer was required to pay the first and last month’s rent at the time the lease was signed. The customer also was required to pay an $800 damage deposit. Home Office must recognize as income for the lease:
A) $1,000 in 2009, if Home Office is an accrual basis taxpayer.
B) $1,000 in 2010, if Home Office is a cash basis taxpayer.
C) $1,800 in 2009, if Home Office is a cash basis taxpayer.
D) $0 in 2009, if Home Office is an accrual basis taxpayer.
E) None of the above.
5.
Kathy operates a gym. She sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $360 ($360/12 = $30 per month); a two-year membership costs $600 ($600/24 = $25 per month). Cash payment is required at the beginning of the membership period. On July 1, 2009, Kathy sold a one-year membership and a two-year membership.
I. If Kathy is a cash basis taxpayer, her 2009 gross income from the contracts is $960 ($360 + $600).
II. If Kathy is an accrual basis taxpayer, her 2009 gross income from the contracts is $330 [(6/12 $360) + (6/24 $600)].
III. If Kathy is an accrual basis taxpayer, her 2010 gross income from the contracts is $630 [(6/12)($360) + $450].
A) Only I is true.
B) Only I and II are true.
C) Only II and III are true.
D) I, II, and III are true.
E) None of the above.
6.
Ben was diagnosed with a terminal illness. His physician estimated that Ben would live no more than 18 months. After he received the doctor’s diagnosis, Ben cashed in his life insurance policy to pay some medical bills. Ben had paid $12,000 in premiums on the policy, and he collected $50,000, the cash surrender value of the policy. Henry enjoys excellent health, but he cashed in his life insur.
Multiple choice Tax QuestionsPeter and Eileen are marrie.docxadelaidefarmer322
Multiple choice Tax Questions
Peter and Eileen are married and live in a common law state. Peter wants to make gifts to their five children in 2009. What is the maximum amount of the annual exclusion they will be allowed for these gifts?
A) $60,000.
B) $65,000.
C) $120,000.
D) $130,000.
E) None of the above.
2.
Which is a primary source of tax law?
A) J. W. Yarbo v. Comm., 737 F.2d 479 (CA-5, 1984).
B) Article by a Federal judge in Harvard Law Review.
C) Technical Advice Memoranda.
D) Letter ruling.
E) All of the above are primary sources.
3.
Jerry purchased a U.S. Series EE savings bond for $279. The bond has a maturity value in 10 years of $500 and yields 6% interest. This is the first Series EE bond that Jerry has ever owned.
A) Jerry must report the interest income each year using the original issue discount rules.
B) Jerry can report all of the $221 interest income in the year the bond matures.
C) The interest on the bonds is exempt from Federal income tax.
D) Jerry must report ($500 – $279)/10 = $22.10 interest income each year he owns the bond.
E) None of the above.
4.
Home Office, Inc., leased a copying machine to a new customer on December 27, 2009. The machine was to rent for $500 per month for a period of 36 months beginning January 1, 2010. The customer was required to pay the first and last month’s rent at the time the lease was signed. The customer also was required to pay an $800 damage deposit. Home Office must recognize as income for the lease:
A) $1,000 in 2009, if Home Office is an accrual basis taxpayer.
B) $1,000 in 2010, if Home Office is a cash basis taxpayer.
C) $1,800 in 2009, if Home Office is a cash basis taxpayer.
D) $0 in 2009, if Home Office is an accrual basis taxpayer.
E) None of the above.
5.
Kathy operates a gym. She sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $360 ($360/12 = $30 per month); a two-year membership costs $600 ($600/24 = $25 per month). Cash payment is required at the beginning of the membership period.
On July 1, 2009, Kathy sold a one-year membership and a two-year membership.
I.
If Kathy is a cash basis taxpayer, her 2009 gross income from the contracts is $960 ($360 + $600).
II.
If Kathy is an accrual basis taxpayer, her 2009 gross income from the contracts is $330 [(6/12 $360) + (6/24 $600)].
III.
If Kathy is an accrual basis taxpayer, her 2010 gross income from the contracts is $630 [(6/12)($360) + $450].
A) Only I is true.
B) Only I and II are true.
C) Only II and III are true.
D) I, II, and III are true.
E) None of the above.
6.
Ben was diagnosed with a terminal illness. His physician estimated that Ben would live no more than 18 months.
After he received the doctor’s diagnosis, Ben cashed in his life insurance policy to pay some medical bills.
Ben had paid $12,000 in premiums on the policy, and he collected $50,000, the cash surrender value .
1. A company receives a note payable for $3,500 at 9 for 45 day.docxjackiewalcutt
1. A company receives a note payable for $3,500 at 9% for 45 days. How much interest (to the nearest cent) will the customer owe using a 360-day year?
A. $315.00
B. $354.38
C. $38.84
D. $39.38
2. Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded to the nearest cent)
A. $1,584,88.
B. $1,605.00.
C. $20.13.
D. $1,520.13.
3. Tammy Industries inadvertently debited a $5,000 betterment as an ordinary expense. Which of the following will occur as a result of this mistake?
A. Retained earnings will be overstated by $5,000.
B. The asset will be overstated by $5,000.
C. The asset will be understated by $5,000.
D. Net income will be overstated by $5,000.
4. Which of the following would not be considered a contingent liability?
A. Pending legal action
B. Potential fines from the EPA
C. Cosigning a loan
D. Mortgage payable
5. Which of the following would indicate poor internal control over accounts receivable?
A. The same person handling cash receipts also records the accounts receivable transactions.
B. The person who handles accounts receivable wouldn't write off accounts as uncollectable.
C. The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.
D. The mailroom employees open the mail and give the cash receipts to another employee.
6. If the amount extracted from a coal mine was different every year for four years, you would
A. debit depletion expense for the same amount each year.
B. credit accumulated depletion—coal mine for the same amount each year.
C. recompute the depletion expense rate per unit each year.
D. use the same depletion expense rate per unit each year.
7. Margaret is a customer of Tammy Company. The company wrote off her account of $1,200 on August 15. On October 12, she sent in a payment of $560. What will Tammy Company record first to reinstate her account?
A. Debit Uncollectible Accounts Expense; credit Accounts Receivable/Margaret.
B. Debit Cash; credit Accounts Receivable/Margaret.
C. Debit Accounts Receivable/Margaret; credit Allowance for Doubtful Accounts.
D. Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Margaret.
8. Which of the following would be considered a cash equivalent?
A. Checks
B. Currency
C. Time deposits
D. Money orders
9. A company purchased furniture on January 1, 2012. Its cost was $15,600, and it had a residual value of $1,600. Its useful life is determined to be three years. Using double-declining balance depreciation, the depreciation for 2012 to the nearest dollar will be
A. $4,667.
B. $10,400.
C. $9,333.
D. $5,200.
10. A warranty is an example of a/an _______ liability.
A. known
B. estimated
C. contingent
D. settled
11. Research and development costs (R&D) are generally
A. listed as "long-term assets" on the balance sheet.
B. listed as "current assets" on the balance sheet.
C. listed as "other intangibles" on the balance s ...
Legal InfluencesDo we have too many laws Does the existence o.docxSHIVA101531
Legal Influences
Do we have too many laws? Does the existence of so many laws and regulations hinder or help American Business today. Feel free to give examples of some “stupid” laws! Have fun with this discussion!
Unions and Video Surfing!
Please go to You Tube, bing.com videos, or any Video sharing web site and add the Key Word: "Unions”
Find a video that interests you of the thousands that are on the net on any aspect on Unions
Watch the Video that you selected and take notes on what you viewed.
1 In a paper of at least two and not more than three, double spaced pages, no Title Page, tell me what video you viewed.
2 Make sure that you provide the Internet address and the Title on what you viewed.
3 Explain what you viewed and what you learned.
4 You may supplement your viewing with any other information or your opinion.
ENJOY YOUR SURFING!
Chapter 1
26. LO.4, 5 A question on a state income tax return asks the taxpayer if he or she made any out-of-state Internet or mail-order catalog purchases during the year. The question requires a yes or no answer, and if the taxpayer answers yes, the amount of such purchases is to be listed.
a. Does such an inquiry have any relevance to the state income tax? If not, why is it being asked?
b. Your client, Harriet, wants to leave the question unanswered. As the preparer of her return, how do your respond?
36.LO.5 Assess the probability of an audit in each of the following independent situations:
a. As a result of a jury trial, Linda was awarded $3.5 million because of job discrimination. The award included $3 million for punitive damages.
b. Mel operates a combination check-cashing service and pawnshop.
c. Jayden, a self-employed trial lawyer, routinely files a Schedule C (Form 1040) that, due to large dedcti8ons, reports little (if any) profit from his practice.
d. Bernard is the head server at an upscale restaurant and recently paid $1.8 million for a residence in an exclusive gated community.
42.LO.5, 6 On a Federal income tax return filed five years ago, any inadvertently omitted a large amount of gross income.
a. Andy seeks your advice as to whether the IRS is barred from assessing additional income tax in the event he is audited. What is your advice?
b. Would your advice differ if you were the person who prepared the return in question? Explain.
c. Suppose Andy asks you to prepare his current year’s return. Would you do so? Explain.
50. LO.7, 8 Discuss the probable justification for each of the following aspects of the tax law:
a. A tax credit is allowed for amounts spent to furnish care for minor children while the parents work.
b. Deductions for interest on home mortgage and property taxes on personal residence.
c. The income splitting benefits of filing a joint return.
d. Gambling losses in excess of gambling gains.
e. Net operating losses of a current year can be carried back to profitable years.
f. A taxpayer who sells pr ...
Multiple choice Tax QuestionsPeter and Eileen are marrie.docxadelaidefarmer322
Multiple choice Tax Questions
Peter and Eileen are married and live in a common law state. Peter wants to make gifts to their five children in 2009. What is the maximum amount of the annual exclusion they will be allowed for these gifts?
A) $60,000.
B) $65,000.
C) $120,000.
D) $130,000.
E) None of the above.
2.
Which is a primary source of tax law?
A) J. W. Yarbo v. Comm., 737 F.2d 479 (CA-5, 1984).
B) Article by a Federal judge in Harvard Law Review.
C) Technical Advice Memoranda.
D) Letter ruling.
E) All of the above are primary sources.
3.
Jerry purchased a U.S. Series EE savings bond for $279. The bond has a maturity value in 10 years of $500 and yields 6% interest. This is the first Series EE bond that Jerry has ever owned.
A) Jerry must report the interest income each year using the original issue discount rules.
B) Jerry can report all of the $221 interest income in the year the bond matures.
C) The interest on the bonds is exempt from Federal income tax.
D) Jerry must report ($500 – $279)/10 = $22.10 interest income each year he owns the bond.
E) None of the above.
4.
Home Office, Inc., leased a copying machine to a new customer on December 27, 2009. The machine was to rent for $500 per month for a period of 36 months beginning January 1, 2010. The customer was required to pay the first and last month’s rent at the time the lease was signed. The customer also was required to pay an $800 damage deposit. Home Office must recognize as income for the lease:
A) $1,000 in 2009, if Home Office is an accrual basis taxpayer.
B) $1,000 in 2010, if Home Office is a cash basis taxpayer.
C) $1,800 in 2009, if Home Office is a cash basis taxpayer.
D) $0 in 2009, if Home Office is an accrual basis taxpayer.
E) None of the above.
5.
Kathy operates a gym. She sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $360 ($360/12 = $30 per month); a two-year membership costs $600 ($600/24 = $25 per month). Cash payment is required at the beginning of the membership period.
On July 1, 2009, Kathy sold a one-year membership and a two-year membership.
I.
If Kathy is a cash basis taxpayer, her 2009 gross income from the contracts is $960 ($360 + $600).
II.
If Kathy is an accrual basis taxpayer, her 2009 gross income from the contracts is $330 [(6/12 $360) + (6/24 $600)].
III.
If Kathy is an accrual basis taxpayer, her 2010 gross income from the contracts is $630 [(6/12)($360) + $450].
A) Only I is true.
B) Only I and II are true.
C) Only II and III are true.
D) I, II, and III are true.
E) None of the above.
6.
Ben was diagnosed with a terminal illness. His physician estimated that Ben would live no more than 18 months.
After he received the doctor’s diagnosis, Ben cashed in his life insurance policy to pay some medical bills.
Ben had paid $12,000 in premiums on the policy, and he collected $50,000, the cash surrender value .
1. A company receives a note payable for $3,500 at 9 for 45 day.docxjackiewalcutt
1. A company receives a note payable for $3,500 at 9% for 45 days. How much interest (to the nearest cent) will the customer owe using a 360-day year?
A. $315.00
B. $354.38
C. $38.84
D. $39.38
2. Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded to the nearest cent)
A. $1,584,88.
B. $1,605.00.
C. $20.13.
D. $1,520.13.
3. Tammy Industries inadvertently debited a $5,000 betterment as an ordinary expense. Which of the following will occur as a result of this mistake?
A. Retained earnings will be overstated by $5,000.
B. The asset will be overstated by $5,000.
C. The asset will be understated by $5,000.
D. Net income will be overstated by $5,000.
4. Which of the following would not be considered a contingent liability?
A. Pending legal action
B. Potential fines from the EPA
C. Cosigning a loan
D. Mortgage payable
5. Which of the following would indicate poor internal control over accounts receivable?
A. The same person handling cash receipts also records the accounts receivable transactions.
B. The person who handles accounts receivable wouldn't write off accounts as uncollectable.
C. The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.
D. The mailroom employees open the mail and give the cash receipts to another employee.
6. If the amount extracted from a coal mine was different every year for four years, you would
A. debit depletion expense for the same amount each year.
B. credit accumulated depletion—coal mine for the same amount each year.
C. recompute the depletion expense rate per unit each year.
D. use the same depletion expense rate per unit each year.
7. Margaret is a customer of Tammy Company. The company wrote off her account of $1,200 on August 15. On October 12, she sent in a payment of $560. What will Tammy Company record first to reinstate her account?
A. Debit Uncollectible Accounts Expense; credit Accounts Receivable/Margaret.
B. Debit Cash; credit Accounts Receivable/Margaret.
C. Debit Accounts Receivable/Margaret; credit Allowance for Doubtful Accounts.
D. Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Margaret.
8. Which of the following would be considered a cash equivalent?
A. Checks
B. Currency
C. Time deposits
D. Money orders
9. A company purchased furniture on January 1, 2012. Its cost was $15,600, and it had a residual value of $1,600. Its useful life is determined to be three years. Using double-declining balance depreciation, the depreciation for 2012 to the nearest dollar will be
A. $4,667.
B. $10,400.
C. $9,333.
D. $5,200.
10. A warranty is an example of a/an _______ liability.
A. known
B. estimated
C. contingent
D. settled
11. Research and development costs (R&D) are generally
A. listed as "long-term assets" on the balance sheet.
B. listed as "current assets" on the balance sheet.
C. listed as "other intangibles" on the balance s ...
Legal InfluencesDo we have too many laws Does the existence o.docxSHIVA101531
Legal Influences
Do we have too many laws? Does the existence of so many laws and regulations hinder or help American Business today. Feel free to give examples of some “stupid” laws! Have fun with this discussion!
Unions and Video Surfing!
Please go to You Tube, bing.com videos, or any Video sharing web site and add the Key Word: "Unions”
Find a video that interests you of the thousands that are on the net on any aspect on Unions
Watch the Video that you selected and take notes on what you viewed.
1 In a paper of at least two and not more than three, double spaced pages, no Title Page, tell me what video you viewed.
2 Make sure that you provide the Internet address and the Title on what you viewed.
3 Explain what you viewed and what you learned.
4 You may supplement your viewing with any other information or your opinion.
ENJOY YOUR SURFING!
Chapter 1
26. LO.4, 5 A question on a state income tax return asks the taxpayer if he or she made any out-of-state Internet or mail-order catalog purchases during the year. The question requires a yes or no answer, and if the taxpayer answers yes, the amount of such purchases is to be listed.
a. Does such an inquiry have any relevance to the state income tax? If not, why is it being asked?
b. Your client, Harriet, wants to leave the question unanswered. As the preparer of her return, how do your respond?
36.LO.5 Assess the probability of an audit in each of the following independent situations:
a. As a result of a jury trial, Linda was awarded $3.5 million because of job discrimination. The award included $3 million for punitive damages.
b. Mel operates a combination check-cashing service and pawnshop.
c. Jayden, a self-employed trial lawyer, routinely files a Schedule C (Form 1040) that, due to large dedcti8ons, reports little (if any) profit from his practice.
d. Bernard is the head server at an upscale restaurant and recently paid $1.8 million for a residence in an exclusive gated community.
42.LO.5, 6 On a Federal income tax return filed five years ago, any inadvertently omitted a large amount of gross income.
a. Andy seeks your advice as to whether the IRS is barred from assessing additional income tax in the event he is audited. What is your advice?
b. Would your advice differ if you were the person who prepared the return in question? Explain.
c. Suppose Andy asks you to prepare his current year’s return. Would you do so? Explain.
50. LO.7, 8 Discuss the probable justification for each of the following aspects of the tax law:
a. A tax credit is allowed for amounts spent to furnish care for minor children while the parents work.
b. Deductions for interest on home mortgage and property taxes on personal residence.
c. The income splitting benefits of filing a joint return.
d. Gambling losses in excess of gambling gains.
e. Net operating losses of a current year can be carried back to profitable years.
f. A taxpayer who sells pr ...
1. During a recent week, incurred wages were $700. However, $280.docxjackiewalcutt
1. During a recent week, incurred wages were $700. However, $280 of the wages hadn't been paid. The adjusting entry for wages would be
A. debit wages expense, $420; credit wages payable, $420.
B. debit wages payable, 420; credit wages expense, $420.
C. debit wages expense, $280; credit wages payable, $280.
D. debit wages payable, $280; credit wages expense, $280.
2. Rick owns a sporting goods store. In his initial accounting records, he included his personal computer and all of his personal sporting gear. Rick is violating which principle of accounting?
A. Reliability
B. Cost
C. Entity
D. Going concern
3. A T-account has which major parts?
A. A debit side, a credit side, and a total column
B. A title, a debit side, and a credit side
C. A debit side, a credit side, and a balance
D. A title, a current date, and a balance
4. Accounts payable, taxes payable, and notes payable
A. increase on the debit side, decrease on the credit side, and are expenses.
B. increase on the debit side, decrease on the credit side, and are assets.
C. decrease on the debit side, increase on the credit side, and are liabilities.
D. decrease on the debit side, increase on the credit side, and are revenues.
5. The closing entries show a debit to retained earnings of $350 and a credit to retained earnings of $750. There was also a credit to dividends payable of $100. This company had a
A. net income of $400.
B. net loss of $500
C. net loss of $400.
D. net income of $500.
6. Rick lists his building at current replacement value, rather than the price he paid for the building. Which principle is Rick violating?
A. Cost
B. Going concern
C. Entity
D. Reliability
7. Dividends are paid with cash to shareholders. Dividends are in which category of the chart of accounts?
A. Stockholders' equity
B. Liabilities
C. Assets
D. Revenue
8. Which financial statement illustrates the accounting equation?
A. Statement of cash flows
B. Statement of retained earnings
C. Income statement
D. Balance sheet
9. Beginning retained earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid are $3,500. How much is the net income or loss for the company?
A. ($7,000)
B. $0
C. $26,000
D. ($3,500)
10. Casey's is famous for its submarine sandwiches. At the end of 2009, Casey's total assets were $345,000, and total liabilities were $129,500. How much was Casey's stockholders' equity?
A. $215,500
B. Some other number
C. $345,000
D. $474,500
11. The adjusted trial balance for supplies was $333. The unadjusted trial balance for supplies was $509. The amount of supplies expense would be a
A. $509 debit.
B. $176 debit.
C. $333 debit.
D. $176 credit.
12. Collecting rent from a client three months in advance would be an example of a/an
A. accrued expense.
B. deferred expense.
C. deferred revenue.
D. accrued revenue.
13. Expenses paid in advance, such as rent and insurance, are classified as prepaid expenses. Into whi ...
For each question on the midterm exam, unless the question expressly.docxrhetttrevannion
For each question on the midterm exam, unless the question expressly provides to the contrary, you should assume that:
all events occurred in ‘the current taxable year;’
all persons are United States citizens;
there is no tax avoidance purpose for any transaction, and that with respect to any mortgage on any property, there was a bona fide business purpose for incurring or assuming the debt;
whenever a party receives encumbered property, the party
assumed the mortgage, even if not specifically stated;
there is no special election made unless the facts specifically state that there is an election made and in effect;
in all cases, that there is only one class of stock issued and outstanding in any corporation, and that class is common voting stock;
with respect to each partnership question, the partnership has no hot assets, has no debts or other liabilities, and does not have a Section 754 election in effect;
with respect to each partnership question, each partnership is a general partnership; and
with respect to each partnership question, there are no special allocation provisions contained in any partnership agreement.
Choose the letter for the choice that best answers the question or completes the sentence.
Questions
1.
Jack
owns 60 percent of Corporation. Corporation had acquired land known as the Parcel in January of 2000 for $68,000 and held the Parcel
for investment purposes. During the current taxable year, Corporation sold the Parcel to Jack for $65,000 which amount was equal to the fair market value of the Parcel. Shortly after receiving the Parcel, Jack, never having made any gifts before, gave the Parcel
to his friend Tom from college when the property was worth $70,000.
Tom sold the Parcel two years later to Sue, a person not related to Corporation, Jack, Sue, or Tom, for $75,000.
How much gain or loss is realized and recognized as a result of these three transfers?
a.
Corporation realizes a loss of $3,000 and
recognizes a loss of 3,000 on the sale; Jack realizes a gain of $8,000 and recognizes a gain of 5,000 on the transfer to Tom; Tom realizes a gain of $5,000 and recognizes a gain of $2,000 on the transfer to Sue.
b.
Corporation realizes a loss of $3,000 and recognizes a loss of 3,000 on the sale; Jack realizes a gain of $5,000 and
recognizes a gain of 5,000 o the transfer to Tom; Tom realizes
gain of $5,000 and recognizes a gain of $2,000 on the transfer to Sue.
c.
Corporation realizes a loss of $3,000 and recognizes a loss of 0 on the sale; Jack does not realize or recognize any gain or loss on the transfer to Tom; Tom realizes a gain of $10,000 and recognizes a gain of $10,000 on the transfer to Sue.
d.
Corporation realizes a loss of $3,000 and recognizes a loss of 0 on the sale; Jack realizes a gain of $5,000 and recognizes a gain of $5,000 on the transfer to Tom;
Tom realizes a gain of $5,000 and recognizes a gain of $5,000 on the transfer to Sue.
2.
Corporation had the follow.
Question 1 Which of the following indicates that a decision has .docxmakdul
Question 1
Which of the following indicates that a decision has precedential value for future cases?
A.
Stare decicis
B.
Golsen doctrine
C.
En banc
D.
Reenactment doctrine
E.
None of the above
Question 2
The Golsen doctrine applies to which court?
A.
U.S. Tax Court
B.
U.S. District Court
C.
U.S. Court of Federal Claims
D.
U.S. Supreme Court
E.
Some other court
Question 3
Interpret the following citation: 64-1 USTC ¶ 9618, aff’d in 344 F. 2d 966.
A.
A U.S. Tax Court Small Cases Division decision that was affirmed on appeal.
B.
A U.S. Tax Court decision that was affirmed on appeal.
C.
A U.S. District Court decision that was affirmed on appeal.
D.
A U.S. Circuit Court of Appeals decision that was affirmed on appeal.
E.
None of the above.
Question 4
A Memorandum decision of the U.S. Tax Court could be cited as:
A.
T.C. Memo. 1990-650
B.
68-1 USTC ¶ 9200
C.
37 AFTR 2d 456
D.
All of the above
E.
None of the above
Question 5
Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2011. He also owns 60% of the stock in a C corporation that earned $150,000 during the year. The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn. How much income must Bjorn report from these businesses?
A.
$0 income from the S corporation and $30,000 income from the C corporation.
B.
$90,000 income from the S corporation and $30,000 income from the C corporation.
C.
$90,000 income from the S corporation and $0 income from the C corporation.
D.
$30,000 income from the S corporation and $30,000 of dividend income from the C corporation.
E.
None of the above
Question 6
In 2011, Bluebird Corporation had net income from operations of $75,000. Further, Bluebird recognized a long-term capital loss of $30,000, and a short-term capital gain of $10,000. Which of the following statements is correct?
A.
Bluebird Corporation may use the capital loss to offset the capital gain and must carry the net capital loss of $20,000 forward five years as a long-term capital loss.
B.
Bluebird Corporation may deduct $13,000 of the capital loss in 2011 and may carry forward the remainder of the capital loss indefinitely to offset capital gains.
C.
Bluebird Corporation will have taxable income in 2011 of $55,000.
D.
Bluebird Corporation will have taxable income in 2011 of $75,000 and will have a net capital loss of $20,000 that can be carried back 3 years and forward 5 years.
E.
None of the above
Question 7
Which of the following statements is correct regarding the taxation of C corporations?
A.
The due date for a corporate income tax return (ignoring extensions) is the fifteenth day of the third month following the close of the corporation’s tax year.
B.
A corporation with taxable income of less than $500 need not file a tax return.
C.
The alternative minimum tax does not apply.
D.
In general, the required annual payment for corporate estimated taxes is 90% of the corporation’s final tax for ...
LESSON 11. Which of the following would result in a decrease i.docxSHIVA101531
LESSON 1
1. Which of the following would result in a decrease in cash flow and a use of cash?
A. A decrease in notes payable
B. An increase in long-term debt
C.A decrease in inventory
D. A decrease in common stock
2. In the United States, for the 2007 tax year, federal corporate income tax rates never exceeded an average rate of
A. 15%. C. 39%.
B. 35%. D. 34%.
3. A firm has assets of $60,000 and owners’ equity of $33,000. Which of the following is the correct balance of the firm’s liabilities?
A. $33,000 C. $93,000
B. $27,000 D. $60,000
4. Which of the following would result in an increase in cash flow and a source of cash?
A. A decrease in notes payable
B. A decrease in long-term debt
C. An increase in inventory
D. An increase in common stock
5. A firm has current assets of $10,000 and current liabilities of $7,000. Which of the following is the correct net working capital for the firm?
A. $10,000 C. $3,000
B. $7,000 D. $13,000
6. If a firm has an accounts receivable balance of $18,800 at the end of 2007 and $16,500 at the end of 2008, which of the following statements about accounts receivable is correct?
A. Accounts receivable decreased by $2,300 and represented a use of cash.
B. Accounts receivable increased by $2,300 and represented a source of cash.
C. Accounts receivable decreased by $2,300 and represented a source of cash.
D. Accounts receivable increased by $2,300 and represented a use of cash.
7. If a firm has revenues of $15,090 and expenses of $8,850, what is the firm’s taxable income?
A. $15,090 C. $6,240
B. $8,850 D. $23,940
8. Which of the following statements about the issuance of an initial public offering (IPO) is correct?
A. IPOs may be either underpriced or overpriced.
B. IPOs are never overpriced.
C. IPOs are never underpriced.
D. IPOs are always correctly priced.
9. If a firm has revenues of $15,090, operating expenses of $8,850, and a tax expense of $2,120, what is the firm’s net income?
A. $8,850 C. $6,240
B. $4,120 D. $8,360
10. When you’re preparing a common-sized balance sheet, which of the following measures is set to equal 100 percent?
A. Total liabilities C. Total owners’ equity
B. Total assets D. Cash
11. Suppose that a corporation has a taxable income of $200,000. What is the firm’s corporate income tax for the current tax year? (You can use the following table to calculate the firm’s U.S. federal corporate tax.)
Taxable Income
More Than
Taxable Income
Less Than
Tax
Rate
$0 $50,000 15%
$50,001 $75,000 25%
$75,001 $100,000 34%
$100,001 $335,000 39%
$335,001 $10,000,000 34%
$10,000,001 $15,000,000 35%
$15,000,001 $183,333,334 38%
$18,333,334 35%
A. $78,000 C. $39,000
B. $6,250 D. $61,250
12. Using the same table and information provided in Question 11, what is the firm’s average tax rate?
A. 39% C. 34%
B. 30.625% D. 31.625%
13. Using the same table and information provided in Question 11, what is the firm’s marginal tax rate?
A. 39% C. 34%
B. 30.625% D. 31.625%
14. Dilution r ...
Problems – 5 points each1. Greg and Justin are forming the G.docxwkyra78
Problems – 5 points each
1. Greg and Justin are forming the GJ Partnership. Greg contributes $500,000 cash and Justin contributes nondepreciable property with an adjusted basis of $200,000 and a fair market value of $550,000. The property is subject to a $50,000 liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes. Greg and Justin share in all partnership profits equally except for any precontribution gain, which must be allocated according to the statutory rules for built-in gain allocations.
a. What is Justin’s adjusted tax basis for his partnership interest immediately after the partnership is formed?
b. What is the partnership’s adjusted basis for the property contributed by Justin?
c. If the partnership sells the property contributed by Justin for $600,000, how is the tax gain allocated between the partners?
2. The LN partnership reported the following items of income and deduction during the current tax year: revenues, $200,000; cost of goods sold, $80,000; tax-exempt interest income, $5,000; salaries to employees, $50,000; and long-term capital gain, $5,000. In addition, the partnership distributed $10,000 of cash to 50% partner Nina and $20,000 of cash to 50% partner Len. What is Nina’s share of ordinary partnership income and separately stated items?
3. In the current year, Derek formed an equal partnership with Cody. Derek contributed land with an adjusted basis of $110,000 and a fair market value of $200,000. Derek also contributed $50,000 cash to the partnership. Cody contributed land with an adjusted basis of $80,000 and a fair market value of $230,000. The land contributed by Derek was encumbered by a $60,000 nonrecourse debt. The land contributed by Cody was encumbered by $40,000 of nonrecourse debt. Assume the partners share debt equally. Immediately after the formation, what is the basis of Cody’s partnership interest?
4. Janet Wang is a 50% owner of a calendar year S corporation. During 2012, the S corporation has ordinary income of $175,000, short-term capital gain of $94,000, tax-exempt income of $22,000, and a charitable contribution of $18,000. What S corporation items must Janet report in 2012?
5. Bidden, Inc., a calendar year S corporation, incurred the following items:
Sales
$130,000
Depreciation recapture income
12,000
Short-term capital gain
30,000
Cost of goods sold
(42,000)
Municipal bond interest income
7,000
Administrative expenses
(15,000)
Depreciation expense
(17,000)
Charitable contributions
(14,000)
Calculate Bidden’s nonseparately computed income.
6. During 2012, Ms. Rasic, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2011, Ms. Rasic’s stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. Calculate the amount and type of income Ms. Rasic recognizes in 2012, assuming there is no C ...
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Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Question 2.2. (TCOs 3, 4, 5, & 7) In the current year, Galaxy
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Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Question 2.2. (TCOs 3, 4, 5, & 7) In the current year, Galaxy e
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Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Acct 324 Enthusiastic Study / snaptutorial.comGeorgeDixon42
Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Omit all general journal entry explanations.Be sure to include c.docxIlonaThornburg83
Omit all general journal entry
explanations.
Be sure to include correct dollar signs, underlines and double underlines.
Question 1 (15 points) Statement of Cash Flows
The following is selected information from Murphy Company for the fiscal years ended December 31, 2015: Murphy Company had net income of $500,000. Depreciation was $50,000, purchases of plant assets were $ 250,000, and disposals of plant assets for $500,000 resulted in a $20,000 gain. Stock was issued in exchange for an outstanding note payable of $925,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $10,000. Dividends of $200,000 were paid to shareholders. Murphy Company had interest expense of $5,000. Cash balance on January 1, 2015 was $250,000.
Requirements:Prepare Murphy Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.
Hint (recall the 3 sections)
Question 2 (10 points)
On January 1, 2015, Baker Company purchased 10,000 shares of the stock of Murphy,
and did obtain significant influence
. The investment is intended as a long-term investment. The stock was purchased for $70,000, and represents a 25% ownership stake. Murphy made $20,000 of net income in 2015, and paid dividends of $10,000. The price of Murphy's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
a.
Prepare the January 1 and December 31 general journal entries for Baker Company.
b.
How much should the Baker Company report on the balance sheet for the investment in Murphy at the end of 2015?
Question 3 (20 Points)
On December 31, 2016, Murphy Inc. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2016 and were not recorded:
a.
On January 1, Murphy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b.
On February 15, Murphy re-acquired 1,000 shares of common stock for $20 each.
c.
On March 31, Murphy reissued 250 shares of treasury stock for $25 each.
d.
On July 1, Murphy reissued 500 shares of treasury stock for $16 each.
e.
On October 1, Murphy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f.
On December 15, Murphy split common stock 2 shares for 1.
g.
Net Income for 2016 was $275,000.
Requirements:
a.
Prepare journal entries for the transactions listed above.
b.
Prepare a Stockholders' section of a classified balance sheet as of December 31, 2016.
Question 4 (14 poi.
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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.
Write a 5-7 page paper describing the historical development of info.docxherbertwilson5999
Write a 5-7 page paper describing the historical development of information systems in healthcare. Be sure to include, at minimum, the following elements:
Different types of healthcare informatics
Importance of ethical expertise when managing health information
Dynamics of informatics in today's integrated delivery systems
Be sure to use Unicheck!
.
Write a 5 paragraph essay related to the healthcare fieldthree.docxherbertwilson5999
Write a 5 paragraph essay related to the healthcare field/three major points are required
Use a variety of sentences
Use transitional words
Use in-text citations to avoid plagiarism
Remember to hand it in with a cover and a reference page
.
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1. During a recent week, incurred wages were $700. However, $280.docxjackiewalcutt
1. During a recent week, incurred wages were $700. However, $280 of the wages hadn't been paid. The adjusting entry for wages would be
A. debit wages expense, $420; credit wages payable, $420.
B. debit wages payable, 420; credit wages expense, $420.
C. debit wages expense, $280; credit wages payable, $280.
D. debit wages payable, $280; credit wages expense, $280.
2. Rick owns a sporting goods store. In his initial accounting records, he included his personal computer and all of his personal sporting gear. Rick is violating which principle of accounting?
A. Reliability
B. Cost
C. Entity
D. Going concern
3. A T-account has which major parts?
A. A debit side, a credit side, and a total column
B. A title, a debit side, and a credit side
C. A debit side, a credit side, and a balance
D. A title, a current date, and a balance
4. Accounts payable, taxes payable, and notes payable
A. increase on the debit side, decrease on the credit side, and are expenses.
B. increase on the debit side, decrease on the credit side, and are assets.
C. decrease on the debit side, increase on the credit side, and are liabilities.
D. decrease on the debit side, increase on the credit side, and are revenues.
5. The closing entries show a debit to retained earnings of $350 and a credit to retained earnings of $750. There was also a credit to dividends payable of $100. This company had a
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C. net loss of $400.
D. net income of $500.
6. Rick lists his building at current replacement value, rather than the price he paid for the building. Which principle is Rick violating?
A. Cost
B. Going concern
C. Entity
D. Reliability
7. Dividends are paid with cash to shareholders. Dividends are in which category of the chart of accounts?
A. Stockholders' equity
B. Liabilities
C. Assets
D. Revenue
8. Which financial statement illustrates the accounting equation?
A. Statement of cash flows
B. Statement of retained earnings
C. Income statement
D. Balance sheet
9. Beginning retained earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid are $3,500. How much is the net income or loss for the company?
A. ($7,000)
B. $0
C. $26,000
D. ($3,500)
10. Casey's is famous for its submarine sandwiches. At the end of 2009, Casey's total assets were $345,000, and total liabilities were $129,500. How much was Casey's stockholders' equity?
A. $215,500
B. Some other number
C. $345,000
D. $474,500
11. The adjusted trial balance for supplies was $333. The unadjusted trial balance for supplies was $509. The amount of supplies expense would be a
A. $509 debit.
B. $176 debit.
C. $333 debit.
D. $176 credit.
12. Collecting rent from a client three months in advance would be an example of a/an
A. accrued expense.
B. deferred expense.
C. deferred revenue.
D. accrued revenue.
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For each question on the midterm exam, unless the question expressly.docxrhetttrevannion
For each question on the midterm exam, unless the question expressly provides to the contrary, you should assume that:
all events occurred in ‘the current taxable year;’
all persons are United States citizens;
there is no tax avoidance purpose for any transaction, and that with respect to any mortgage on any property, there was a bona fide business purpose for incurring or assuming the debt;
whenever a party receives encumbered property, the party
assumed the mortgage, even if not specifically stated;
there is no special election made unless the facts specifically state that there is an election made and in effect;
in all cases, that there is only one class of stock issued and outstanding in any corporation, and that class is common voting stock;
with respect to each partnership question, the partnership has no hot assets, has no debts or other liabilities, and does not have a Section 754 election in effect;
with respect to each partnership question, each partnership is a general partnership; and
with respect to each partnership question, there are no special allocation provisions contained in any partnership agreement.
Choose the letter for the choice that best answers the question or completes the sentence.
Questions
1.
Jack
owns 60 percent of Corporation. Corporation had acquired land known as the Parcel in January of 2000 for $68,000 and held the Parcel
for investment purposes. During the current taxable year, Corporation sold the Parcel to Jack for $65,000 which amount was equal to the fair market value of the Parcel. Shortly after receiving the Parcel, Jack, never having made any gifts before, gave the Parcel
to his friend Tom from college when the property was worth $70,000.
Tom sold the Parcel two years later to Sue, a person not related to Corporation, Jack, Sue, or Tom, for $75,000.
How much gain or loss is realized and recognized as a result of these three transfers?
a.
Corporation realizes a loss of $3,000 and
recognizes a loss of 3,000 on the sale; Jack realizes a gain of $8,000 and recognizes a gain of 5,000 on the transfer to Tom; Tom realizes a gain of $5,000 and recognizes a gain of $2,000 on the transfer to Sue.
b.
Corporation realizes a loss of $3,000 and recognizes a loss of 3,000 on the sale; Jack realizes a gain of $5,000 and
recognizes a gain of 5,000 o the transfer to Tom; Tom realizes
gain of $5,000 and recognizes a gain of $2,000 on the transfer to Sue.
c.
Corporation realizes a loss of $3,000 and recognizes a loss of 0 on the sale; Jack does not realize or recognize any gain or loss on the transfer to Tom; Tom realizes a gain of $10,000 and recognizes a gain of $10,000 on the transfer to Sue.
d.
Corporation realizes a loss of $3,000 and recognizes a loss of 0 on the sale; Jack realizes a gain of $5,000 and recognizes a gain of $5,000 on the transfer to Tom;
Tom realizes a gain of $5,000 and recognizes a gain of $5,000 on the transfer to Sue.
2.
Corporation had the follow.
Question 1 Which of the following indicates that a decision has .docxmakdul
Question 1
Which of the following indicates that a decision has precedential value for future cases?
A.
Stare decicis
B.
Golsen doctrine
C.
En banc
D.
Reenactment doctrine
E.
None of the above
Question 2
The Golsen doctrine applies to which court?
A.
U.S. Tax Court
B.
U.S. District Court
C.
U.S. Court of Federal Claims
D.
U.S. Supreme Court
E.
Some other court
Question 3
Interpret the following citation: 64-1 USTC ¶ 9618, aff’d in 344 F. 2d 966.
A.
A U.S. Tax Court Small Cases Division decision that was affirmed on appeal.
B.
A U.S. Tax Court decision that was affirmed on appeal.
C.
A U.S. District Court decision that was affirmed on appeal.
D.
A U.S. Circuit Court of Appeals decision that was affirmed on appeal.
E.
None of the above.
Question 4
A Memorandum decision of the U.S. Tax Court could be cited as:
A.
T.C. Memo. 1990-650
B.
68-1 USTC ¶ 9200
C.
37 AFTR 2d 456
D.
All of the above
E.
None of the above
Question 5
Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2011. He also owns 60% of the stock in a C corporation that earned $150,000 during the year. The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn. How much income must Bjorn report from these businesses?
A.
$0 income from the S corporation and $30,000 income from the C corporation.
B.
$90,000 income from the S corporation and $30,000 income from the C corporation.
C.
$90,000 income from the S corporation and $0 income from the C corporation.
D.
$30,000 income from the S corporation and $30,000 of dividend income from the C corporation.
E.
None of the above
Question 6
In 2011, Bluebird Corporation had net income from operations of $75,000. Further, Bluebird recognized a long-term capital loss of $30,000, and a short-term capital gain of $10,000. Which of the following statements is correct?
A.
Bluebird Corporation may use the capital loss to offset the capital gain and must carry the net capital loss of $20,000 forward five years as a long-term capital loss.
B.
Bluebird Corporation may deduct $13,000 of the capital loss in 2011 and may carry forward the remainder of the capital loss indefinitely to offset capital gains.
C.
Bluebird Corporation will have taxable income in 2011 of $55,000.
D.
Bluebird Corporation will have taxable income in 2011 of $75,000 and will have a net capital loss of $20,000 that can be carried back 3 years and forward 5 years.
E.
None of the above
Question 7
Which of the following statements is correct regarding the taxation of C corporations?
A.
The due date for a corporate income tax return (ignoring extensions) is the fifteenth day of the third month following the close of the corporation’s tax year.
B.
A corporation with taxable income of less than $500 need not file a tax return.
C.
The alternative minimum tax does not apply.
D.
In general, the required annual payment for corporate estimated taxes is 90% of the corporation’s final tax for ...
LESSON 11. Which of the following would result in a decrease i.docxSHIVA101531
LESSON 1
1. Which of the following would result in a decrease in cash flow and a use of cash?
A. A decrease in notes payable
B. An increase in long-term debt
C.A decrease in inventory
D. A decrease in common stock
2. In the United States, for the 2007 tax year, federal corporate income tax rates never exceeded an average rate of
A. 15%. C. 39%.
B. 35%. D. 34%.
3. A firm has assets of $60,000 and owners’ equity of $33,000. Which of the following is the correct balance of the firm’s liabilities?
A. $33,000 C. $93,000
B. $27,000 D. $60,000
4. Which of the following would result in an increase in cash flow and a source of cash?
A. A decrease in notes payable
B. A decrease in long-term debt
C. An increase in inventory
D. An increase in common stock
5. A firm has current assets of $10,000 and current liabilities of $7,000. Which of the following is the correct net working capital for the firm?
A. $10,000 C. $3,000
B. $7,000 D. $13,000
6. If a firm has an accounts receivable balance of $18,800 at the end of 2007 and $16,500 at the end of 2008, which of the following statements about accounts receivable is correct?
A. Accounts receivable decreased by $2,300 and represented a use of cash.
B. Accounts receivable increased by $2,300 and represented a source of cash.
C. Accounts receivable decreased by $2,300 and represented a source of cash.
D. Accounts receivable increased by $2,300 and represented a use of cash.
7. If a firm has revenues of $15,090 and expenses of $8,850, what is the firm’s taxable income?
A. $15,090 C. $6,240
B. $8,850 D. $23,940
8. Which of the following statements about the issuance of an initial public offering (IPO) is correct?
A. IPOs may be either underpriced or overpriced.
B. IPOs are never overpriced.
C. IPOs are never underpriced.
D. IPOs are always correctly priced.
9. If a firm has revenues of $15,090, operating expenses of $8,850, and a tax expense of $2,120, what is the firm’s net income?
A. $8,850 C. $6,240
B. $4,120 D. $8,360
10. When you’re preparing a common-sized balance sheet, which of the following measures is set to equal 100 percent?
A. Total liabilities C. Total owners’ equity
B. Total assets D. Cash
11. Suppose that a corporation has a taxable income of $200,000. What is the firm’s corporate income tax for the current tax year? (You can use the following table to calculate the firm’s U.S. federal corporate tax.)
Taxable Income
More Than
Taxable Income
Less Than
Tax
Rate
$0 $50,000 15%
$50,001 $75,000 25%
$75,001 $100,000 34%
$100,001 $335,000 39%
$335,001 $10,000,000 34%
$10,000,001 $15,000,000 35%
$15,000,001 $183,333,334 38%
$18,333,334 35%
A. $78,000 C. $39,000
B. $6,250 D. $61,250
12. Using the same table and information provided in Question 11, what is the firm’s average tax rate?
A. 39% C. 34%
B. 30.625% D. 31.625%
13. Using the same table and information provided in Question 11, what is the firm’s marginal tax rate?
A. 39% C. 34%
B. 30.625% D. 31.625%
14. Dilution r ...
Problems – 5 points each1. Greg and Justin are forming the G.docxwkyra78
Problems – 5 points each
1. Greg and Justin are forming the GJ Partnership. Greg contributes $500,000 cash and Justin contributes nondepreciable property with an adjusted basis of $200,000 and a fair market value of $550,000. The property is subject to a $50,000 liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes. Greg and Justin share in all partnership profits equally except for any precontribution gain, which must be allocated according to the statutory rules for built-in gain allocations.
a. What is Justin’s adjusted tax basis for his partnership interest immediately after the partnership is formed?
b. What is the partnership’s adjusted basis for the property contributed by Justin?
c. If the partnership sells the property contributed by Justin for $600,000, how is the tax gain allocated between the partners?
2. The LN partnership reported the following items of income and deduction during the current tax year: revenues, $200,000; cost of goods sold, $80,000; tax-exempt interest income, $5,000; salaries to employees, $50,000; and long-term capital gain, $5,000. In addition, the partnership distributed $10,000 of cash to 50% partner Nina and $20,000 of cash to 50% partner Len. What is Nina’s share of ordinary partnership income and separately stated items?
3. In the current year, Derek formed an equal partnership with Cody. Derek contributed land with an adjusted basis of $110,000 and a fair market value of $200,000. Derek also contributed $50,000 cash to the partnership. Cody contributed land with an adjusted basis of $80,000 and a fair market value of $230,000. The land contributed by Derek was encumbered by a $60,000 nonrecourse debt. The land contributed by Cody was encumbered by $40,000 of nonrecourse debt. Assume the partners share debt equally. Immediately after the formation, what is the basis of Cody’s partnership interest?
4. Janet Wang is a 50% owner of a calendar year S corporation. During 2012, the S corporation has ordinary income of $175,000, short-term capital gain of $94,000, tax-exempt income of $22,000, and a charitable contribution of $18,000. What S corporation items must Janet report in 2012?
5. Bidden, Inc., a calendar year S corporation, incurred the following items:
Sales
$130,000
Depreciation recapture income
12,000
Short-term capital gain
30,000
Cost of goods sold
(42,000)
Municipal bond interest income
7,000
Administrative expenses
(15,000)
Depreciation expense
(17,000)
Charitable contributions
(14,000)
Calculate Bidden’s nonseparately computed income.
6. During 2012, Ms. Rasic, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2011, Ms. Rasic’s stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. Calculate the amount and type of income Ms. Rasic recognizes in 2012, assuming there is no C ...
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Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Question 2.2. (TCOs 3, 4, 5, & 7) In the current year, Galaxy
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Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Question 2.2. (TCOs 3, 4, 5, & 7) In the current year, Galaxy e
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Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Acct 324 Enthusiastic Study / snaptutorial.comGeorgeDixon42
Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Question 1.1. (TCOs 2 & 3) Evelyn sold her personal residence to Drew on March 1 for $300,000. Before the sale, Evelyn paid the real estate taxes of $3,000 for the calendar year. For income tax purposes, the real estate tax deduction is apportioned as follows: $750 to Evelyn and $2,250 to Drew. Drew's basis in the residence is: (Points : 5)
Omit all general journal entry explanations.Be sure to include c.docxIlonaThornburg83
Omit all general journal entry
explanations.
Be sure to include correct dollar signs, underlines and double underlines.
Question 1 (15 points) Statement of Cash Flows
The following is selected information from Murphy Company for the fiscal years ended December 31, 2015: Murphy Company had net income of $500,000. Depreciation was $50,000, purchases of plant assets were $ 250,000, and disposals of plant assets for $500,000 resulted in a $20,000 gain. Stock was issued in exchange for an outstanding note payable of $925,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $10,000. Dividends of $200,000 were paid to shareholders. Murphy Company had interest expense of $5,000. Cash balance on January 1, 2015 was $250,000.
Requirements:Prepare Murphy Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.
Hint (recall the 3 sections)
Question 2 (10 points)
On January 1, 2015, Baker Company purchased 10,000 shares of the stock of Murphy,
and did obtain significant influence
. The investment is intended as a long-term investment. The stock was purchased for $70,000, and represents a 25% ownership stake. Murphy made $20,000 of net income in 2015, and paid dividends of $10,000. The price of Murphy's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
a.
Prepare the January 1 and December 31 general journal entries for Baker Company.
b.
How much should the Baker Company report on the balance sheet for the investment in Murphy at the end of 2015?
Question 3 (20 Points)
On December 31, 2016, Murphy Inc. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2016 and were not recorded:
a.
On January 1, Murphy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b.
On February 15, Murphy re-acquired 1,000 shares of common stock for $20 each.
c.
On March 31, Murphy reissued 250 shares of treasury stock for $25 each.
d.
On July 1, Murphy reissued 500 shares of treasury stock for $16 each.
e.
On October 1, Murphy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f.
On December 15, Murphy split common stock 2 shares for 1.
g.
Net Income for 2016 was $275,000.
Requirements:
a.
Prepare journal entries for the transactions listed above.
b.
Prepare a Stockholders' section of a classified balance sheet as of December 31, 2016.
Question 4 (14 poi.
For more classes visit
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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.
Write a 5-7 page paper describing the historical development of info.docxherbertwilson5999
Write a 5-7 page paper describing the historical development of information systems in healthcare. Be sure to include, at minimum, the following elements:
Different types of healthcare informatics
Importance of ethical expertise when managing health information
Dynamics of informatics in today's integrated delivery systems
Be sure to use Unicheck!
.
Write a 5 paragraph essay related to the healthcare fieldthree.docxherbertwilson5999
Write a 5 paragraph essay related to the healthcare field/three major points are required
Use a variety of sentences
Use transitional words
Use in-text citations to avoid plagiarism
Remember to hand it in with a cover and a reference page
.
Write at least a six-page paper, in which youIdentify the.docxherbertwilson5999
Write at least a six-page paper, in which you:
Identify the two LDCs (from the provided list), which you will compare and assess. Explain why you chose these two countries. (Congo and Philippines)
Analyze the features that the LDCs have in common using at least five of the following nine factors (clearly label the five factors using headings):
Geography.
Extractive institutions.
Governmental corruption.
Internal or external conflicts.
Shaky financial systems.
Unfair judicial systems.
Ethnic, racial, or tribal disparities.
Lack or misuse of natural resources.
Closed (statist) economies.
Use at least seven credible sources. Wikipedia, encyclopedias, dictionaries, and blogs do not qualify as reputable academic source work at the college level. Do not use sources that are older than seven years.
.
Write a 2 page paper analyzing the fact pattern scenario below. Plea.docxherbertwilson5999
Write a 2 page paper analyzing the fact pattern scenario below. Please use your own state law. Your analysis should include application of the topics covered during the past 7 weeks. For example, search and seizure, search warrant, execution of warrant, exclusionary rule, Miranda rights, and the right against self incrimination.
Make sure all citations are in APA or Blue book format.
Please see the attached grading rubric below. This grading rubric will be used to grade this assignment.
Leila is a police officer. She is out of uniform and knocked on Dan's front door of his house and asked if she could enter to enforce a warrant she had. The warrant was a search warrant issued by a magistrate at the Lawrence District Court. His name is Mark McCale, a retired police officer for the state police department in Lawrence. The warrant indicated that "the first floor of Dan's house will be searched for a gun used in connection with a robbery and some jewelry, which was stolen." While looking in Dan's house, Officer Leila smelled what she thought to be gun powder emanating from the second floor. Officer Leila immediately walked upstairs and found a gun at the tops of the stairs. She went to confiscate the gun and while doing so noticed a note attached to the gun with an address on it. Later that afternoon police officers went to the address of the house listed on the note of the gun. Jewelry was found at this address and collected by the police officers. The address was a known address for stolen jewelry to be pawned. While at Dan's house, Dan told Officer Leila that, "I do not know what you are here for, because I did not rob Terri Grubb's jewelry store." Officer Leila asked Dan to go to the police station and Dan agreed. As they walked into the police station, Magistrate McCale yelled, "is that the person who robbed Terri Grubb's jewelry store?!" Dan replied, "I told Officer Leila already, I did not rob Terri Grubb's jewelry store."
Supporting Materials
Week 8 Assignment Grading Rubric.docx
(14 KB)
.
Write a 2 page paper analyzing the fact pattern scenario below. .docxherbertwilson5999
Write a 2 page paper analyzing the fact pattern scenario below. Please use your own state law. Your analysis should include application of the topics covered during the past 7 weeks. For example, search and seizure, search warrant, execution of warrant, exclusionary rule, Miranda rights, and the right against self incrimination.
Make sure all citations are in APA or Blue book format.
Please see the attached grading rubric below. This grading rubric will be used to grade this assignment.
Leila is a police officer. She is out of uniform and knocked on Dan's front door of his house and asked is should could enter to enforce a warrant she had. The warrant was a search warrant issued by a magistrate at the Lawrence District Court. His name is Mark McCale, a retired police officer for the state police department in Lawrence. The warrant indicated that "the first floor of Dan's house will be searched for a gun used in connection with a robbery and some jewelry, which was stolen." While looking in Dan's house, Officer Leila smelled what she thought to be gun powder emanating from the second floor. Officer Leila immediately walked upstairs and found a gun at the tops of the stairs. She went to confiscate the gun and while doing so noticed a note attached to the gun with an address on it. Later that afternoon police officers went to the address of the house listed on the note of the gun. A bunch of jewelry was found at this address and collected by the police officers. The address was a known address for stolen jewelry to be pawned. While at Dan's house, Dan told Officer Leila that, "I do not know what you are here for, because I did not rob the Terri Grubb's jewelry store." Officer Leila asked Dan to go to the police station and Dan agreed. As they walked into the police station, Magistrate McCale yelled, "is that the person who robbed Terri Grubb's jewelry store?!" Dan replied, "I told Officer Leila already, I did not rob the Terri Grubb's jewelry store."
.
Write a 100-word response in Spanish that addresses both of .docxherbertwilson5999
Write a
100
-word response in
Spanish
that addresses both of the following questions:
1.
What are some of the distinctive characteristics that make Costa Rica a haven for naturalists and environmentalists?
2.
What are some of the steps that the government, private sector and individuals are doing to maintain the balance between man and nature?
.
Write a Request for Proposal (approx. 3 - 4 pages in a word doc.docxherbertwilson5999
Write a Request for Proposal (approx. 3 - 4 pages in a word document format) that includes all the good elements of an RFP. Submit PMP Template including section 8. You may embed and submit a separate document for the RFP.
1) Clear Statement of work with clear deliverables of specific elements of the project being procured.
2) Timeline for submittal of proposal
3) Manner in which to handle questions
4) Clear information to vendor so that they can produce a good cost/price case
- What Deliverables will the Vendor Provide?
- What Deliverables (or work) will the Buyer Provide?
5) Timeline with milestones requested to complete the work
6) Type of Contract (that should be proposed e.g. FFP, T&M, CP%C, etc)
7) Evaluation Criteria
8) Outline and Format for the Proposal
9) Scheduled award date
.
Write a 5 paragraph essay related to Physical Therapy Assistant th.docxherbertwilson5999
Write a 5 paragraph essay related to Physical Therapy Assistant /three major points are required
Use a variety of sentences
Use transitional words
Use in-text citations to avoid plagiarism
Include a cover and a reference page
Minimal of three sources
.
Write a 5 page paper with at-least three images that represent.docxherbertwilson5999
Write a 5 page paper with at-least three images that represent the African American Visual Arts Movement (discuss artists, art, historical information . Give background information, characteristics and style. Analyze each work of art. Do not forget to list at-least three sources used to assist in writing paper, APA format guidelines. Place appropriate captions under each image.
Fragments of African American Art
Contemporary Art
Surrealism
Realism
OR
After reviewing the videos below and researching , write a two page paper on the
challenges of
African American VISUAL Artists
and other professional minority visual artists through out history and up to the present day
. Use a minimum of 5 references that will assist you in writing your paper.
https://www.youtube.com/watch?v=u8kg8xzJNt8
.
Write a 5 paragraph essay related to the healthcare fieldthree maj.docxherbertwilson5999
Write a 5 paragraph essay related to the healthcare field/three major points are required
Use a variety of sentences
Use transitional words
Use in-text citations to avoid plagiarism
Remember to hand it in with a cover and a reference page
.
Write at least Ten sentences on your discussion. Compare and con.docxherbertwilson5999
Write at least Ten sentences on your discussion.
Compare and contrast the California economy of the Great Depression and the California economy of World War II. Which industries were prevalent during the war and why was California's location/geography so important?
.
Write at least a three-page analysis using the case study on pages.docxherbertwilson5999
Write at least a three-page analysis using the case study on pages 343-344 of your textbook: “Expatriate Management at AstraZeneca PLC.”
Your analysis should address the prompts listed below.
· Critically analyze AstraZeneca’s expatriate management practices.
· Surveys show that most expatriates report feeling the strain of managing the demands of work and home while adjusting to the foreign environment, leading to more anxieties at home and at the workplace. What steps can an organization take to mitigate this?
· What decisions related to expatriates can organizations take to maximize the benefits to the company despite the economic downturn? Do you think a company that paid more careful attention to selection could further boost its chances of success?
This week, I would like you to discuss similarities with past pandemics, and the current COVID-19 pandemic using this link https://www.cdc.gov/flu/pandemic-resources/1968-pandemic.html
What do you see as similar, and what do you see as different?
It is CRITICAL that you document your sources with the week's discussion. If your post has no references or the references are really not reliable nor valid, then you will receive zero points for the post. This includes both your own post, and your comments on other's posts.
The rationale for this involves the amount of commentary that is available about the pandemic from people that are not scientists, nor do they have the knowledge of infectious diseases. What they DO have is a strong desire to sound good and influence people. We HAVE TO know what is good information and hat is not good information.
Several posts due this week... You must write three original posts, and comment on five other posts for a total of eight posts for credit this week.
EXAMPLE:
Post 1: An initial similarity between COVID-19 and the 2009 (H1N1) pdm09 virus was the unknown of the virus’. Both viruses’ have not been seen in human before yet strands of the virus had. COVID-19 is new coronavirus that has not been detected in humans before. There have been many strands of coronavirus that have detected in humans before such as the common cold (CDC, 2020).
Similarly, the 2009 (H1N1) pdm09 virus was very different from H1N1 virus’ that were detected before the pandemic. There were few young people who were found to have the antibodies likely from a previous exposure to H1N1 virus strand (CDC, 2019).
Both the recent pandemics were mutated strands of virus’ that we have seen before.
Centers for Disease Control and Prevention. (2020, May 9). Coronavirus (COVID-19) frequently asked questions. Centers for Disease Control and Prevention. https://www.cdc.gov/coronavirus/2019-ncov/faq.html
Centers for Disease Control and Prevention. (2019, June 11). 2009 H1N1 Pandemic (H1N1pdm09 virus). Centers for Disease Control and Prevention. https://www.cdc.gov/flu/pandemic-resources/2009-h1n1-pandemic.html.
Post 2:
The effects of the H1N1 virus and the COVID-19 pandemics seem to different .
Write at least a six-page paper, in which you Identify th.docxherbertwilson5999
Write at least a six-page paper, in which you:
Identify the two LDCs (from the list above), which you will compare and assess. Explain why you chose these two countries.
Analyze the features that the LDCs have in common using
at least five of the following nine factors
(clearly label the five factors using headings):
geography
extractive institutions
governmental corruption
internal or external conflicts
shaky financial systems
unfair judicial systems
ethnic, racial or tribal disparities
lack or misuse of natural resources
closed (statist) economies
Use
at least seven credible sources
. Wikipedia, encyclopedias, dictionaries, blogs and other material that does not qualify as reputable academic source work at the college level. Do not use sources that are older than seven years.
.
Write at least a paragraph for each.1) What is your understand.docxherbertwilson5999
Write at least a paragraph for each.
1) What is your understanding of how a 401(k) plan works? What are the advantages/disadvantages for an employer/employee?
2) What three major types of benefits do contributions to Social Security pay for?
3) What are the employee benefits required by law?
*Use APA format please! and cite accordingly!
.
Write at least 500 words analyzing a subject you find in this .docxherbertwilson5999
Write at least 500 words analyzing a subject you find in this
article
related to a threat to confidentiality, integrity, or availability of data. Use an example from the news.
Include at least one quote from 3 articles, place them in quotation marks and cite in-line (as all work copied from another should be handled).
Cite your sources in a reference list at the end. Do not copy without providing proper attribution (quotation marks and in-line citations). Write in essay format not in bulleted, numbered or other list format
.
Write at least 750 words paper on Why is vulnerability assessme.docxherbertwilson5999
Write at least 750 words paper on “Why is vulnerability assessment critical for data security?” And also prepare twelve minutes or more presentations on this topic by adding notes under each slide. with a separate reference list of at least 3 academically appropriate sources. Provide appropriate attribution. It is important that you use your own words, that you cite your sources, that you comply with the instructions regarding the length of your post. Do not use spinbot or other word replacement software. It usually results in nonsense and is not a good way to learn anything.
.
Write As if You Are Writing in Your Journal (1st Person)Your T.docxherbertwilson5999
**Write As if You Are Writing in Your Journal (1st Person)
Your Thoughts And Intentions.
What challenges do you face (i.e., bad habits, weaknesses, etc.) that you need to address to move forward as a leader? How can you begin to address them? (Be sure to make personal application and make it practical).
.
Write an original, Scholarly Paper, addressing a topic relevant to t.docxherbertwilson5999
Write an original, Scholarly Paper, addressing a topic relevant to the course. A scholarly paper should demonstrate a standard of critical thinking at levels of analysis, evaluation, and synthesis. Be sure to use and cite references that meet the standard for scholarship.
.
Write an observation essay that explains the unique significance.docxherbertwilson5999
Write an
observation essay
that explains the unique significance of a particular person or place within a larger community. Describe the person or place through vivid description, narration, dialogue and sensory details. Help others outside of your community understand why the person or place is important to the community.
Assignment
Observation
, as the CEL describes it, requires writers to "study their subjects and learn something by seeing them in a particular way" (93). Observation essays do more than just report facts: they also "find the hidden meaning, the significant issues, and the important aspects of a particular subject" (93).
Your purpose in this Observation Essay is to
convey the significance of a particular person or place in your community through details that show how the subject "fits" within the community's priorities and values
. Your descriptions and details should make it easy for someone unfamiliar with your community to understand why the person or place you chose is relevant and significant to the community.
*Note: although this essay is intended to be based in recent, firsthand observations, you may write from recent memories instead if you are restricted in travel and mobility during the COVID pandemic. If you are writing from memories, try to recreate scenes and descriptions as though you are seeing them again for the first time.
In order to achieve this purpose, you need to:
Observe and Take field notes. Begin with observing the person or place and writing down notes about what you see, hear, and sense. Plan to observe this person or place 2-3 times. In your notes, record specific actions that you notice, dialogue you overhear, interactions you have with other people, and any important details about the scene that might help you SHOW its significance through vivid detail and narration.
Describe the person or place through actions, details, and dialogue that offer
insight
into why this person or place has unique
significance
as an important part of the community.
Explain context and background that shows how the person or place matters within the larger community. Context might include history, factual information, anecdotes, geographical information, or other details that help an audience understand the person or place as part of something bigger than themselves/itself.
Follow a carefully planned organizational structure that gives priority to specific details, themes, and values. Your final draft should be organized to show the significance of the person or place and should not simply list details in the order you observed them.
Offer a strong introduction that hooks readers with vivid details or action and focuses attention on the significance of the subject. Provide a strong conclusion that
As you look back over your observations and notes, remember that your essay should do more than simply relate details without any larger significance. Your observation of the person or place should .
Write an introduction in APA format in about 2 pages to describe.docxherbertwilson5999
Write an introduction in APA format in about 2 pages to describe any bank organization – its background etc. Then explain how data science and big data is useful for the back.
Also explain the IT team dynamics in the organization I.e. all the positions that are in the IT team of the bank developers, project managers etc.
Also explain how the company uses the agile model in the workflow for the data science projects.
Explain what is structured and unstructured data. What the sources of structured and unstructured data in a bank and what are the sources of these data.
Please provide at least 3-4 in text citation and references.
.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Peter and Eileen are married and live in a common law state. Peter.docx
1. Peter and Eileen are married and live in a common law state.
Peter wants to make gifts to their five children in 2009. What is
the maximum amount of the annual exclusion they will be
allowed for these gifts?
A) $60,000.
B) $65,000.
C) $120,000.
D) $130,000.
E) None of the above.
2.
Which is a primary source of tax law?
A) J. W. Yarbo v. Comm., 737 F.2d 479 (CA-5, 1984).
B) Article by a Federal judge in Harvard Law Review.
C) Technical Advice Memoranda.
D) Letter ruling.
E) All of the above are primary sources.
3.
Jerry purchased a U.S. Series EE savings bond for $279. The
bond has a maturity value in 10 years of $500 and yields 6%
interest. This is the first Series EE bond that Jerry has ever
owned.
A) Jerry must report the interest income each year using the
original issue discount rules.
B) Jerry can report all of the $221 interest income in the year
the bond matures.
C) The interest on the bonds is exempt from Federal income
tax.
D) Jerry must report ($500 – $279)/10 = $22.10 interest income
each year he owns the bond.
E) None of the above.
4.
Home Office, Inc., leased a copying machine to a new customer
on December 27, 2009. The machine was to rent for $500 per
month for a period of 36 months beginning January 1, 2010. The
2. customer was required to pay the first and last month’s rent at
the time the lease was signed. The customer also was required
to pay an $800 damage deposit. Home Office must recognize as
income for the lease:
A) $1,000 in 2009, if Home Office is an accrual basis taxpayer.
B) $1,000 in 2010, if Home Office is a cash basis taxpayer.
C) $1,800 in 2009, if Home Office is a cash basis taxpayer.
D) $0 in 2009, if Home Office is an accrual basis taxpayer.
E) None of the above.
5.
Kathy operates a gym. She sells memberships that entitle the
member to use the facilities at any time. A one-year
membership costs $360 ($360/12 = $30 per month); a two-year
membership costs $600 ($600/24 = $25 per month). Cash
payment is required at the beginning of the membership period.
On July 1, 2009, Kathy sold a one-year membership and a two-
year membership.
I. If Kathy is a cash basis taxpayer, her 2009 gross income
from the contracts is $960 ($360 + $600).
II. If Kathy is an accrual basis taxpayer, her 2009 gross
income from the c
$600)].
III. If Kathy is an accrual basis taxpayer, her 2010 gross
income from the contracts is $630 [(6/12)($360) + $450].
A) Only I is true.
B) Only I and II are true.
C) Only II and III are true.
D) I, II, and III are true.
E) None of the above.
6.
Ben was diagnosed with a terminal illness. His physician
estimated that Ben would live no more than 18 months. After
he received the doctor’s diagnosis, Ben cashed in his life
insurance policy to pay some medical bills. Ben had paid
$12,000 in premiums on the policy, and he collected $50,000,
3. the cash surrender value of the policy. Henry enjoys excellent
health, but he cashed in his life insurance policy to purchase a
new home. He had paid premiums of $12,000 and collected
$50,000 from the insurance company.
A) Neither Ben nor Henry is required to recognize gross
income.
B) Both Ben and Henry must recognize $38,000 ($50,000 –
$12,000) of gross income.
C) Henry must recognize $38,000 ($50,000 – $12,000) of gross
income, but Ben does not recognize any gross income.
D) Ben must recognize $38,000 ($50,000 – $12,000) of gross
income, but Henry does not recognize any gross income.
E) None of the above.
Roger, age 19, is a full-time graduate student at State College.
During 2009, he received the following payments:
State scholarship for ten months (tuition and books) $3,600
Loan from college financial aid office 1,500
Cash support from parents 3,000
Cash prize awarded in contest 500
$8,600
Roger served as a resident advisor in a dormitory and therefore
the university waived the $2,400 charge for the room he
occupied. What is Roger’s adjusted gross income for 2009?
A) $11,000.
B) $4,100.
C) $2,900.
D) $500.
E) None of the above.
8.
Early in the year, Mike was in an automobile accident during
the course of his employment. As a result of the injuries he
sustained, he received the following payments during the year:
Worker’s compensation benefit $4,000
4. Reimbursement of medical expenses from the company’s group
medical
insurance plan 6,000
Regular salary under the company’s sick pay plan 5,000
What is the amount that Mike must include in gross income for
the current year?
A) $15,000.
B) $11,000.
C) $9,000.
D) $5,000.
E) None of the above.
9.
Which of the following is a deduction from AGI (itemized
deduction)?
A) Contribution to a traditional IRA.
B) Roof repairs to a rental home.
C) Safe deposit box rental fee in which stock certificates are
stored.
D) Alimony payment.
E) None of the above.
10.
Rex, a cash basis calendar year taxpayer, runs a bingo operation
which is illegal under state law. During 2009, a bill designated
H.R. 9 is introduced into the state legislature which, if enacted,
would legitimize bingo games. In 2009, Rex had the following
expenses:
Operating expenses in conducting bingo games $247,000
Payoff money to state and local police 24,000
Newspaper ads supporting H.R. 9 3,000
Political contributions to legislators who support H.R. 9 8,000
Of these expenditures, Rex may deduct:
A) $247,000.
5. B) $250,000.
C) $258,000.
D) $282,000.
E) None of the above.
11.
Tommy, an automobile mechanic employed by an auto
dealership, is considering opening a fast food franchise. If
Tommy decides not to acquire the fast food franchise, any
investigation expenses are:
A) A deduction for AGI.
B) A deduction from AGI, subject to the 2 percent floor.
C) A deduction from AGI, not subject to the 2 percent floor.
D) Deductible up to $5,000 in the current year with the balance
being amortized over a 180-month period.
E) Not deductible.
12.
John had adjusted gross income of $60,000. During the year his
personal use summer home was damaged by a fire. Pertinent
data with respect to the home follows:
Cost basis$250,000
Value before the fire 400,000
Value after the fire 100,000
Insurance recovery 270,000
John had an accident with his personal use car. As a result of
the accident, John was cited with reckless driving and willful
negligence. Pertinent data with respect to the car follows:
Cost basis$80,000
Value before the accident 6,000
Value after the accident 20,000
Insurance recovery –0–
What is John’s deductible casualty loss?
A) $0.
6. B) $15,800.
C) $15,900.
D) $35,900.
E) None of the above.
13.
Janice, single with one dependent child, had the following items
for the year 2009:
Salary $30,000
Dividend income 10,000
Loss on § 1244 small business stock held for three years
(45,000)
Total itemized deductions (5,000)
Determine Janice’s net operating loss for the year 2009.
A) $0.
B) $5,000.
C) $13,350.
D) $20,000.
E) None of the above.
14.
Jack, age 30 and married with no dependents, is a self-employed
individual. For 2009, his self-employed business sustained a net
loss from operations of $10,000. The following additional
information was obtained from his personal records for the year:
Nonbusiness long-term capital gain $ 2,000
Interest income6,000
Itemized deductions—consisting of taxes and interest
(12,000)
Based on the above information, what is Jack’s net operating
loss for the current year if he and his spouse file a joint return?
A) $2,000.
B) $8,000.
C) $10,000.
7. D) $11,000.
E) $16,400.
15.
Tara purchased a machine for $40,000 to be used in her
business. The cost recovery allowed and allowable for the three
years the machine was used are as follows:
Cost Recovery Allowed Cost Recovery Allowable
Year 1 $16,000 $ 8,000
Year 2 9,600 12,800
Year 3 5,760 7,680
If Tara sells the machine after three years for $15,000, how
much gain should she recognize?
A) $3,480.
B) $6,360.
C) $9,240.
D) $11,480.
E) None of the above.
16.
Alice purchased office furniture on September 20, 2009, for
$100,000. On October 10, she purchased business computers for
$80,000. Alice did not elect to expense any of the assets under §
179, nor did she elect straight-line cost recovery. Alice does
elect not to take additional first-year depreciation. Determine
the cost recovery deduction for the business assets for 2009.
A) $6,426.
B) $14,710.
C) $25,722.
D) $30,290.
E) None of the above.
17.
On January 15, 2009, Vern purchased the rights to a mineral
interest for $3,500,000. At that time it was estimated that the
recoverable units would be 500,000. During the year, 40,000
units were mined and 25,000 units were sold for $800,000. Vern
8. incurred expenses during 2009 of $500,000. The percentage
depletion rate is 22%. Determine Vern’s depletion deduction for
2009.
A) $150,000.
B) $175,000.
C) $176,000.
D) $200,000.
E) $250,000.
18.
Corey performs services for Sophie. Which, if any, of the
following factors indicate that Corey is an independent
contractor, rather than an employee?
A) Sophie sets the work schedule.
B) Corey provides his own tools.
C) Corey files a Form 2106 with his Form 1040.
D) Corey is paid by the hour.
E) None of the above.
19.
A worker may prefer to be classified as an employee (rather
than an independent contractor) for which of the following
reasons:
A) To avoid the self-employment tax.
B) To claim unreimbursed work-related expenses as a
deduction for AGI.
C) To avoid the cutback adjustment on unreimbursed business
entertainment expenses.
D) To avoid the 2%-of-AGI floor on unreimbursed work-related
expenses.
E) None of the above.
20.
Amy works as an auditor for a large major CPA firm. During
the months of September thru and November of each year, she is
permanently assigned to the team auditing Garnet Corporation.
As a result, every day she drives from her home to Garnet and
returns home after work. Mileage is as follows:
Miles
9. Home to office 10
Home to Garnet 30
Office to Garnet 35
For these three months, Amy’s deductible mileage for each
workday is:
A) 0.
B) 30.
C) 35.
D) 60.
E) None of the above.
21.
Rosita is employed as a systems analyst. For calendar year
2009, she had AGI of $120,000 and paid the following medical
expenses:
Medical insurance premiums $3,900
Doctor and dentist bills for Jose
and Carmen (Rosita’s parents) 8,250
Doctor and dentist bills for Rosita 6,750
Prescribed medicines for Rosita 300
Nonprescribed insulin for Rosita 825
José and Carmen would qualify as Rosita’s dependents except
that they file a joint return. Rosita’s medical insurance policy
does not cover them. Rosita filed a claim for $3,150 of her own
expenses with her insurance company in December 2009 and
received the reimbursement in January 2010. What is Rosita’s
maximum allowable medical expense deduction for 2009?
A) $2,775.
B) $11,025.
C) $17,325.
D) $17,775.
E) None of the above.
22.
10. Sandra is single and does a lot of business entertaining at home.
Because Arthur, Sandra’s 80-year old dependent grandfather
who lived with Sandra, needs medical and nursing care, he
moved to Twilight Nursing Home. During the year, Sandra
made the following payments on behalf of Arthur:
Room at Twilight $4,500
Meals for Arthur at Twilight 850
Doctor and nurse fees 700
Cable TV service for Arthur’s room 107
Total $6,157
Twilight has medical staff in residence. Disregarding the 7.5%
floor, how much, if any, of these expenses qualify for a medical
deduction by Sandra?
A) $6,157.
B) $6,050.
C) $5,200.
D) $1,550.
E) None of the above.
23.
Joseph and Sandra, married taxpayers, took out a mortgage on
their home for $350,000 in 1989. In May of this year, when the
home had a fair market value of $450,000 and they owed
$250,000 on the mortgage, they took out a home equity loan for
$220,000. They used the funds to purchase a single engine
airplane to be used for recreational travel purposes. What is the
maximum amount of debt on which they can deduct home equity
interest?
A) $50,000.
B) $100,000.
C) $220,000.
D) $230,000.
E) None of the above.
24.
Tara owns a shoe store and a bookstore. Both businesses are
11. operated in a mall. She also owns a restaurant across the street
and a jewelry store several blocks away.
A) All four businesses can be treated as a single activity if
Tara elects to do so.
B) Only the shoe store and bookstore can be treated as a single
activity, the restaurant must be treated as a separate activity,
and the jewelry store must be treated as a separate activity.
C) The shoe store, bookstore, and restaurant can be treated as a
single activity, and the jewelry store must be treated as a
separate activity.
D) All four businesses must be treated as separate activities.
E) None of the above.
25.
Tess owns a building in which she rents apartments to tenants
and operates a restaurant. Which of the following statements is
incorrect?
A) If 60% of Tess’s gross income is from apartment rentals and
40% is from the restaurant, the rental operation and the
restaurant business must be treated as separate activities.
B) If 95% of Tess’s gross income is from apartment rentals and
5% is from the restaurant, she may treat the rental operation and
the restaurant business as a single activity that is a rental
activity.
C) If 5% of Tess’s gross income is from apartment rentals and
95% is from the restaurant, she may treat the rental operation
and the restaurant business as a single activity that is not a
rental activity.
D) If 98% of Tess’s gross income is from apartment rentals and
2% is from the restaurant, the rental operation and the
restaurant business must be treated as a single activity that is
not a rental activity.
E) None of the above.
26.
Tony is married and files a joint tax return. His current
investment interest expense of $95,000 is related to a loan used
to purchase a parcel of unimproved land. Income from
12. investments [dividends (not qualified) and interest] total
$18,000 and miscellaneous itemized deductions (after
adjustment for the 2%-of-AGI floor) amount to $2,800. In
addition to the $1,400 of investment expenses included in
miscellaneous itemized deductions, Tony paid $3,600 of real
estate taxes on the unimproved land. He also has a $4,500 net
long-term capital gain from the sale of another parcel of
unimproved land. Tony’s maximum investment interest
deduction for the year is:
A) $95,000.
B) $18,000.
C) $17,500.
D) $13,000.
E) None of the above.
27.
Prior to the effect of tax credits, Eunice’s regular income tax
liability is $200,000 and her tentative AMT is $190,000. Eunice
has general business credits available of $12,500. Calculate
Eunice’s tax liability after tax credits.
A) $200,000.
B) $190,000.
C) $187,500.
D) $177,500.
E) None of the above.
28.
Which of the following normally produces positive AMT
adjustments?
A) Charitable contributions of property.
B) Standard deduction.
C) Personal exemption deduction.
D) Only b. and c. are correct.
E) a., b., and c. are correct.
29.
Factors that can cause the adjusted basis for AMT purposes to
be different from the adjusted basis for regular income tax
purposes include the following:
13. A) A different amount of depreciation (cost recovery) has been
deducted for AMT purposes and regular income tax purposes.
B) The spread on an incentive stock option (ISO) is recognized
for AMT purposes, but is not recognized for regular income tax
purposes.
C) Two-percent miscellaneous itemized deductions are not
deductible in calculating the AMT.
D) Only a. and b.
E) a., b., and c.
30.
Refundable tax credits include the:
A) Foreign tax credit.
B) Tax credit for rehabilitation expenses.
C) Credit for certain retirement plan contributions.
D) Earned income credit.
E) None of the above.
31.
The components of the general business credit include all of the
following except:
A) Credit for employer-provided child care.
B) Disabled access credit.
C) Research activities credit.
D) Tax credit for rehabilitation expenditures.
E) All of the above are components of the general business
credit.
32.
Molly has generated general business credits over the years that
have not been utilized. The amounts generated and not utilized
follow:
2005 $ 5,000
2006 15,000
2007 10,000
2008 8,000
In the current year, 2009, her business generates an additional
14. $30,000 general business credit. In 2009, based on her tax
liability before credits, she can utilize a general business credit
of up to $40,000. After utilizing the carryforwards and the
current year credits, how much of the general business credit
generated in 2009 is available for future years?
A) $0.
B) $2,000.
C) $23,000.
D) $28,000.
E) None of the above.
33.
On December 1, 2009, Evan purchases an office building from
Ted for $600,000. Evan pays $48,000 to replace the roof, and on
December 15, he pays the property taxes for 2009 of $10,000.
What is the amount realized by Ted and the adjusted basis of
the building (ignore the effect of depreciation) to Evan?
A) $599,151 and $638,849.
B) $600,000 and $648,000.
C) $609,151 and $648,849.
D) $609,151 and $657,151.
E) None of the above.
34.
Which of the following decreases adjusted basis?
A) Amortization of bond premium.
B) A corporate distribution to a shareholder treated as a return
of capital in which gain is recognized to the shareholder.
C) Dividends received.
D) Only a. and b.
E) All of the above.
35.
Steve purchased his home for $500,000. As a sole proprietor, he
operates a certified public accounting practice in his home. For
this business, he uses one room exclusively and regularly as a
home office. In Year 1, $3,042 of depreciation expense on the
home office was deducted on his income tax return. In Year 2,
Steve sustained losses in his business; therefore, no
15. depreciation was taken on the home office. Had he been allowed
to deduct depreciation expense, his depreciation expense would
have been $3,175. What is the adjusted basis in the home?
A) $493,783.
B) $496,825.
C) $496,958.
D) $500,000.
E) None of the above.
36.
In determining the basis of like-kind property received,
postponed losses are:
A) Added to the basis of the old property.
B) Subtracted from the basis of the old property.
C) Added to the fair market value of the like-kind property
received.
D) Subtracted from the fair market value of the like-kind
property received.
E) None of the above.
37.
Rita and Todd exchange real estate in a like-kind exchange.
Rita’s property is subject to a $40,000 mortgage and has a basis
of $75,000 (fair market value of $112,000). She receives real
estate with a fair market value of $72,000 and Todd assumes the
mortgage. What is her recognized gain and adjusted basis for
the real estate received?
A) $0; $75,000.
B) $37,000; $72,000.
C) $37,000; $75,000.
D) $40,000; $115,000.
E) None of the above.
38.
Which of the following qualify as replacement property under §
1033 (nonrecognition of gain from an involuntary conversion)?
1. An office building occupied by the taxpayer is condemned.
The building is to be replaced with a warehouse which is to be
used to store taxpayer’s inventory.
16. 2. A shopping center leased to various retail tenants is
destroyed by a tornado. The shopping center is to be replaced
with a warehouse which is to be leased to various tenants.
3. An office building occupied by the taxpayer is destroyed
by a fire. The office building is to be replaced with a warehouse
which is to be leased to various tenants.
A) 1.
B) 2.
C) 3.
D) Only 1 and 2.
E) 1, 2, and 3.
39.
Virgil was leasing an apartment from Mauve, Inc. Mauve paid
Virgil $1,000 to cancel his lease and move out so that Mauve
could demolish the building. As a result:
A) Virgil has a $1,000 capital gain.
B) Virgil has a $1,000 capital loss.
C) Mauve has a $1,000 capital loss.
D) Mauve has a $1,000 capital gain.
E) None of the above.
40.
Harry inherited a residence from his mother when she died. The
mother had a tax basis of $566,000 for the residence when she
died and the residence was worth $433,000 at the date of her
death. Which of the statements below is correct?
A) Harry’s holding period for the residence includes his
mother’s holding period for the residence.
B) Harry’s holding period for the residence does not include
his mother’s holding period for the residence.
C) Harry’s holding period for the residence is automatically
long term.
D) b and c
E) None of the above.
41.
Sara is filing as head of household and has 2009 taxable income
17. of $27,000 which includes $13,000 of net long-tem capital gain.
The net long-term capital gain is made up of $10,000 25% gain
and $3,000 0%/15% gain. What is the tax on her taxable
income using the alternative tax method?
A) $0.
B) $2,345.
C) $3,003.
D) $4,003.
E) None of the above.
42.
Red Company had an involuntary conversion on December 23,
2009. The machinery had been acquired on April 1, 2007, for
$49,000 and its adjusted basis was $14,200. The machinery was
completely destroyed by fire and Red received $10,000 of
insurance proceeds for the machine and did not replace it. This
was Red’s only casualty or theft event for the year. As a result
of this event, Red initially has:
A) $10,000 § 1231 loss.
B) $10,000 § 1245 recapture gain.
C) $4,200 casualty loss.
D) $4,200 § 1231 loss.
E) None of the above.
43.
Which of the following statements is correct?
A) When depreciable property is gifted to another individual
taxpayer, the depreciation recapture potential is extinguished.
B) When depreciable property is inherited by a taxpayer, the
depreciation recapture potential is extinguished.
C) When corporate depreciable property is distributed as a
dividend, the depreciation recapture potential is generally not
recognized.
D) When depreciable property is contributed to charity, the
depreciation recapture potential has no effect on the amount of
the charitable contribution deduction.
E) All of the above are correct.
44.
18. Business equipment is purchased on March 10, 2008, used in the
business until September 29, 2008, and sold at a $23,000 loss
on October 10, 2008. The equipment was not suitable for the
work the business had purchased it for. The loss on the
disposition should have been reported in the 2008 Form 4797,
Part:
A) I.
B) II.
C) III.
D) IV.
E) This transaction would not be reported in the Form 4797.
45.
Which of the following taxpayers is required to use the accrual
method of accounting?
A) A retail business with average annual gross receipts of
$800,000.
B) A medical doctor with average annual gross receipts of $2
million.
C) An insurance agency with average annual gross receipts of
$2 million.
D) All of the above are required to use the accrual method.
E) None of the above is required to use the accrual method.
46.
The accrual method generally must be used to report income:
A) From long-term construction contracts.
B) Earned by an incorporated public accounting firm with gross
receipts in excess of $5 million.
C) Earned by partnership that has a partner that is a C
corporation.
D) A grocery store with average annual gross receipts of
$900,000.
E) None of the above.
47.
Which of the following statements regarding the matching
principle is correct?
A) The matching principle is never relevant to tax accounting.
19. B) The matching principle of financial accounting is an
important component of the cash method of accounting.
C) The matching principle of financial accounting is the
cornerstone of accrual basis tax accounting.
D) The matching principle of financial accounting is sometimes
relevant to timing deductions for an accrual basis taxpayer’s
recurring items.
E) None of the above.
48.
Which is not considered to be a type of deferred compensation?
A) § 401(k) plan.
B) Incentive stock option (ISO) plan.
C) Tax-deferred annuities.
D) Company-supplied automobile.
E) All of the above are types of deferred compensation.
49.
Which of the following characteristics does not describe a
defined contribution plan?
A) Includes a money purchase plan.
B) An account for each participant is established.
C) Exempt from funding requirements.
D) Subject to PBGC plan termination insurance rules.
E) All of the above describe a defined contribution plan.
50.
Susan is a self-employed accountant with a qualified defined
contribution plan (a Keogh plan). She has the following income
items for the year:
Earned income from self-employment $50,000
Dividend income 8,000
Interest income2,000
Net short-term capital gain 12,000
Adjusted gross income 72,000
What is the maximum amount Susan can deduct as a
contribution to her retirement plan in 2009, assuming the self-
20. employment tax rate is 15.3%?
A) $9,235.
B) $12,000.
C) $46,000.
D) $46,468.
E) None of the above.
Peter and Eileen are married and live in a common law state.
Peter wants to make gifts to their five children in 2009. What is
the maximum amount of the annual exclusion they will be
allowed for these gifts?
A) $60,000.
B) $65,000.
C) $120,000.
D) $130,000.
E) None of the above.
2.
Which is a primary source of tax law?
A) J. W. Yarbo v. Comm., 737 F.2d 479 (CA-5, 1984).
B) Article by a Federal judge in Harvard Law Review.
C) Technical Advice Memoranda.
D) Letter ruling.
E) All of the above are primary sources.
3.
Jerry purchased a U.S. Series EE savings bond for $279. The
bond has a maturity value in 10 years of $500 and yields 6%
interest. This is the first Series EE bond that Jerry has ever
owned.
A) Jerry must report the interest income each year using the
original issue discount rules.
B) Jerry can report all of the $221 interest income in the year
the bond matures.
C) The interest on the bonds is exempt from Federal income
tax.
D) Jerry must report ($500 – $279)/10 = $22.10 interest income
21. each year he owns the bond.
E) None of the above.
4.
Home Office, Inc., leased a copying machine to a new customer
on December 27, 2009. The machine was to rent for $500 per
month for a period of 36 months beginning January 1, 2010. The
customer was required to pay the first and last month’s rent at
the time the lease was signed. The customer also was required
to pay an $800 damage deposit. Home Office must recognize as
income for the lease:
A) $1,000 in 2009, if Home Office is an accrual basis taxpayer.
B) $1,000 in 2010, if Home Office is a cash basis taxpayer.
C) $1,800 in 2009, if Home Office is a cash basis taxpayer.
D) $0 in 2009, if Home Office is an accrual basis taxpayer.
E) None of the above.
5.
Kathy operates a gym. She sells memberships that entitle the
member to use the facilities at any time. A one-year
membership costs $360 ($360/12 = $30 per month); a two-year
membership costs $600 ($600/24 = $25 per month). Cash
payment is required at the beginning of the membership period.
On July 1, 2009, Kathy sold a one-year membership and a two-
year membership.
I. If Kathy is a cash basis taxpayer, her 2009 gross income
from the contracts is $960 ($360 + $600).
II. If Kathy is an accrual basis taxpayer, her 2009 gross
$600)].
III. If Kathy is an accrual basis taxpayer, her 2010 gross
income from the contracts is $630 [(6/12)($360) + $450].
A) Only I is true.
B) Only I and II are true.
C) Only II and III are true.
D) I, II, and III are true.
E) None of the above.
22. 6.
Ben was diagnosed with a terminal illness. His physician
estimated that Ben would live no more than 18 months. After
he received the doctor’s diagnosis, Ben cashed in his life
insurance policy to pay some medical bills. Ben had paid
$12,000 in premiums on the policy, and he collected $50,000,
the cash surrender value of the policy. Henry enjoys excellent
health, but he cashed in his life insurance policy to purchase a
new home. He had paid premiums of $12,000 and collected
$50,000 from the insurance company.
A) Neither Ben nor Henry is required to recognize gross
income.
B) Both Ben and Henry must recognize $38,000 ($50,000 –
$12,000) of gross income.
C) Henry must recognize $38,000 ($50,000 – $12,000) of gross
income, but Ben does not recognize any gross income.
D) Ben must recognize $38,000 ($50,000 – $12,000) of gross
income, but Henry does not recognize any gross income.
E) None of the above.
Roger, age 19, is a full-time graduate student at State College.
During 2009, he received the following payments:
State scholarship for ten months (tuition and books) $3,600
Loan from college financial aid office 1,500
Cash support from parents 3,000
Cash prize awarded in contest 500
$8,600
Roger served as a resident advisor in a dormitory and therefore
the university waived the $2,400 charge for the room he
occupied. What is Roger’s adjusted gross income for 2009?
A) $11,000.
B) $4,100.
C) $2,900.
D) $500.
23. E) None of the above.
8.
Early in the year, Mike was in an automobile accident during
the course of his employment. As a result of the injuries he
sustained, he received the following payments during the year:
Worker’s compensation benefit $4,000
Reimbursement of medical expenses from the company’s group
medical
insurance plan 6,000
Regular salary under the company’s sick pay plan 5,000
What is the amount that Mike must include in gross income for
the current year?
A) $15,000.
B) $11,000.
C) $9,000.
D) $5,000.
E) None of the above.
9.
Which of the following is a deduction from AGI (itemized
deduction)?
A) Contribution to a traditional IRA.
B) Roof repairs to a rental home.
C) Safe deposit box rental fee in which stock certificates are
stored.
D) Alimony payment.
E) None of the above.
10.
Rex, a cash basis calendar year taxpayer, runs a bingo operation
which is illegal under state law. During 2009, a bill designated
H.R. 9 is introduced into the state legislature which, if enacted,
would legitimize bingo games. In 2009, Rex had the following
expenses:
Operating expenses in conducting bingo games $247,000
Payoff money to state and local police 24,000
24. Newspaper ads supporting H.R. 9 3,000
Political contributions to legislators who support H.R. 9 8,000
Of these expenditures, Rex may deduct:
A) $247,000.
B) $250,000.
C) $258,000.
D) $282,000.
E) None of the above.
11.
Tommy, an automobile mechanic employed by an auto
dealership, is considering opening a fast food franchise. If
Tommy decides not to acquire the fast food franchise, any
investigation expenses are:
A) A deduction for AGI.
B) A deduction from AGI, subject to the 2 percent floor.
C) A deduction from AGI, not subject to the 2 percent floor.
D) Deductible up to $5,000 in the current year with the balance
being amortized over a 180-month period.
E) Not deductible.
12.
John had adjusted gross income of $60,000. During the year his
personal use summer home was damaged by a fire. Pertinent
data with respect to the home follows:
Cost basis$250,000
Value before the fire 400,000
Value after the fire 100,000
Insurance recovery 270,000
John had an accident with his personal use car. As a result of
the accident, John was cited with reckless driving and willful
negligence. Pertinent data with respect to the car follows:
Cost basis$80,000
Value before the accident 6,000
25. Value after the accident 20,000
Insurance recovery –0–
What is John’s deductible casualty loss?
A) $0.
B) $15,800.
C) $15,900.
D) $35,900.
E) None of the above.
13.
Janice, single with one dependent child, had the following items
for the year 2009:
Salary $30,000
Dividend income 10,000
Loss on § 1244 small business stock held for three years
(45,000)
Total itemized deductions (5,000)
Determine Janice’s net operating loss for the year 2009.
A) $0.
B) $5,000.
C) $13,350.
D) $20,000.
E) None of the above.
14.
Jack, age 30 and married with no dependents, is a self-employed
individual. For 2009, his self-employed business sustained a net
loss from operations of $10,000. The following additional
information was obtained from his personal records for the year:
Nonbusiness long-term capital gain $ 2,000
Interest income6,000
Itemized deductions—consisting of taxes and interest
(12,000)
26. Based on the above information, what is Jack’s net operating
loss for the current year if he and his spouse file a joint return?
A) $2,000.
B) $8,000.
C) $10,000.
D) $11,000.
E) $16,400.
15.
Tara purchased a machine for $40,000 to be used in her
business. The cost recovery allowed and allowable for the three
years the machine was used are as follows:
Cost Recovery Allowed Cost Recovery Allowable
Year 1 $16,000 $ 8,000
Year 2 9,600 12,800
Year 3 5,760 7,680
If Tara sells the machine after three years for $15,000, how
much gain should she recognize?
A) $3,480.
B) $6,360.
C) $9,240.
D) $11,480.
E) None of the above.
16.
Alice purchased office furniture on September 20, 2009, for
$100,000. On October 10, she purchased business computers for
$80,000. Alice did not elect to expense any of the assets under §
179, nor did she elect straight-line cost recovery. Alice does
elect not to take additional first-year depreciation. Determine
the cost recovery deduction for the business assets for 2009.
A) $6,426.
B) $14,710.
C) $25,722.
D) $30,290.
27. E) None of the above.
17.
On January 15, 2009, Vern purchased the rights to a mineral
interest for $3,500,000. At that time it was estimated that the
recoverable units would be 500,000. During the year, 40,000
units were mined and 25,000 units were sold for $800,000. Vern
incurred expenses during 2009 of $500,000. The percentage
depletion rate is 22%. Determine Vern’s depletion deduction for
2009.
A) $150,000.
B) $175,000.
C) $176,000.
D) $200,000.
E) $250,000.
18.
Corey performs services for Sophie. Which, if any, of the
following factors indicate that Corey is an independent
contractor, rather than an employee?
A) Sophie sets the work schedule.
B) Corey provides his own tools.
C) Corey files a Form 2106 with his Form 1040.
D) Corey is paid by the hour.
E) None of the above.
19.
A worker may prefer to be classified as an employee (rather
than an independent contractor) for which of the following
reasons:
A) To avoid the self-employment tax.
B) To claim unreimbursed work-related expenses as a
deduction for AGI.
C) To avoid the cutback adjustment on unreimbursed business
entertainment expenses.
D) To avoid the 2%-of-AGI floor on unreimbursed work-related
expenses.
E) None of the above.
20.
28. Amy works as an auditor for a large major CPA firm. During
the months of September thru and November of each year, she is
permanently assigned to the team auditing Garnet Corporation.
As a result, every day she drives from her home to Garnet and
returns home after work. Mileage is as follows:
Miles
Home to office 10
Home to Garnet 30
Office to Garnet 35
For these three months, Amy’s deductible mileage for each
workday is:
A) 0.
B) 30.
C) 35.
D) 60.
E) None of the above.
21.
Rosita is employed as a systems analyst. For calendar year
2009, she had AGI of $120,000 and paid the following medical
expenses:
Medical insurance premiums $3,900
Doctor and dentist bills for Jose
and Carmen (Rosita’s parents) 8,250
Doctor and dentist bills for Rosita 6,750
Prescribed medicines for Rosita 300
Nonprescribed insulin for Rosita 825
José and Carmen would qualify as Rosita’s dependents except
that they file a joint return. Rosita’s medical insurance policy
does not cover them. Rosita filed a claim for $3,150 of her own
expenses with her insurance company in December 2009 and
received the reimbursement in January 2010. What is Rosita’s
maximum allowable medical expense deduction for 2009?
29. A) $2,775.
B) $11,025.
C) $17,325.
D) $17,775.
E) None of the above.
22.
Sandra is single and does a lot of business entertaining at home.
Because Arthur, Sandra’s 80-year old dependent grandfather
who lived with Sandra, needs medical and nursing care, he
moved to Twilight Nursing Home. During the year, Sandra
made the following payments on behalf of Arthur:
Room at Twilight $4,500
Meals for Arthur at Twilight 850
Doctor and nurse fees 700
Cable TV service for Arthur’s room 107
Total $6,157
Twilight has medical staff in residence. Disregarding the 7.5%
floor, how much, if any, of these expenses qualify for a medical
deduction by Sandra?
A) $6,157.
B) $6,050.
C) $5,200.
D) $1,550.
E) None of the above.
23.
Joseph and Sandra, married taxpayers, took out a mortgage on
their home for $350,000 in 1989. In May of this year, when the
home had a fair market value of $450,000 and they owed
$250,000 on the mortgage, they took out a home equity loan for
$220,000. They used the funds to purchase a single engine
airplane to be used for recreational travel purposes. What is the
maximum amount of debt on which they can deduct home equity
interest?
A) $50,000.
30. B) $100,000.
C) $220,000.
D) $230,000.
E) None of the above.
24.
Tara owns a shoe store and a bookstore. Both businesses are
operated in a mall. She also owns a restaurant across the street
and a jewelry store several blocks away.
A) All four businesses can be treated as a single activity if
Tara elects to do so.
B) Only the shoe store and bookstore can be treated as a single
activity, the restaurant must be treated as a separate activity,
and the jewelry store must be treated as a separate activity.
C) The shoe store, bookstore, and restaurant can be treated as a
single activity, and the jewelry store must be treated as a
separate activity.
D) All four businesses must be treated as separate activities.
E) None of the above.
25.
Tess owns a building in which she rents apartments to tenants
and operates a restaurant. Which of the following statements is
incorrect?
A) If 60% of Tess’s gross income is from apartment rentals and
40% is from the restaurant, the rental operation and the
restaurant business must be treated as separate activities.
B) If 95% of Tess’s gross income is from apartment rentals and
5% is from the restaurant, she may treat the rental operation and
the restaurant business as a single activity that is a rental
activity.
C) If 5% of Tess’s gross income is from apartment rentals and
95% is from the restaurant, she may treat the rental operation
and the restaurant business as a single activity that is not a
rental activity.
D) If 98% of Tess’s gross income is from apartment rentals and
2% is from the restaurant, the rental operation and the
restaurant business must be treated as a single activity that is
31. not a rental activity.
E) None of the above.
26.
Tony is married and files a joint tax return. His current
investment interest expense of $95,000 is related to a loan used
to purchase a parcel of unimproved land. Income from
investments [dividends (not qualified) and interest] total
$18,000 and miscellaneous itemized deductions (after
adjustment for the 2%-of-AGI floor) amount to $2,800. In
addition to the $1,400 of investment expenses included in
miscellaneous itemized deductions, Tony paid $3,600 of real
estate taxes on the unimproved land. He also has a $4,500 net
long-term capital gain from the sale of another parcel of
unimproved land. Tony’s maximum investment interest
deduction for the year is:
A) $95,000.
B) $18,000.
C) $17,500.
D) $13,000.
E) None of the above.
27.
Prior to the effect of tax credits, Eunice’s regular income tax
liability is $200,000 and her tentative AMT is $190,000. Eunice
has general business credits available of $12,500. Calculate
Eunice’s tax liability after tax credits.
A) $200,000.
B) $190,000.
C) $187,500.
D) $177,500.
E) None of the above.
28.
Which of the following normally produces positive AMT
adjustments?
A) Charitable contributions of property.
B) Standard deduction.
C) Personal exemption deduction.
32. D) Only b. and c. are correct.
E) a., b., and c. are correct.
29.
Factors that can cause the adjusted basis for AMT purposes to
be different from the adjusted basis for regular income tax
purposes include the following:
A) A different amount of depreciation (cost recovery) has been
deducted for AMT purposes and regular income tax purposes.
B) The spread on an incentive stock option (ISO) is recognized
for AMT purposes, but is not recognized for regular income tax
purposes.
C) Two-percent miscellaneous itemized deductions are not
deductible in calculating the AMT.
D) Only a. and b.
E) a., b., and c.
30.
Refundable tax credits include the:
A) Foreign tax credit.
B) Tax credit for rehabilitation expenses.
C) Credit for certain retirement plan contributions.
D) Earned income credit.
E) None of the above.
31.
The components of the general business credit include all of the
following except:
A) Credit for employer-provided child care.
B) Disabled access credit.
C) Research activities credit.
D) Tax credit for rehabilitation expenditures.
E) All of the above are components of the general business
credit.
32.
Molly has generated general business credits over the years that
have not been utilized. The amounts generated and not utilized
follow:
2005 $ 5,000
33. 2006 15,000
2007 10,000
2008 8,000
In the current year, 2009, her business generates an additional
$30,000 general business credit. In 2009, based on her tax
liability before credits, she can utilize a general business credit
of up to $40,000. After utilizing the carryforwards and the
current year credits, how much of the general business credit
generated in 2009 is available for future years?
A) $0.
B) $2,000.
C) $23,000.
D) $28,000.
E) None of the above.
33.
On December 1, 2009, Evan purchases an office building from
Ted for $600,000. Evan pays $48,000 to replace the roof, and on
December 15, he pays the property taxes for 2009 of $10,000.
What is the amount realized by Ted and the adjusted basis of
the building (ignore the effect of depreciation) to Evan?
A) $599,151 and $638,849.
B) $600,000 and $648,000.
C) $609,151 and $648,849.
D) $609,151 and $657,151.
E) None of the above.
34.
Which of the following decreases adjusted basis?
A) Amortization of bond premium.
B) A corporate distribution to a shareholder treated as a return
of capital in which gain is recognized to the shareholder.
C) Dividends received.
D) Only a. and b.
E) All of the above.
35.
34. Steve purchased his home for $500,000. As a sole proprietor, he
operates a certified public accounting practice in his home. For
this business, he uses one room exclusively and regularly as a
home office. In Year 1, $3,042 of depreciation expense on the
home office was deducted on his income tax return. In Year 2,
Steve sustained losses in his business; therefore, no
depreciation was taken on the home office. Had he been allowed
to deduct depreciation expense, his depreciation expense would
have been $3,175. What is the adjusted basis in the home?
A) $493,783.
B) $496,825.
C) $496,958.
D) $500,000.
E) None of the above.
36.
In determining the basis of like-kind property received,
postponed losses are:
A) Added to the basis of the old property.
B) Subtracted from the basis of the old property.
C) Added to the fair market value of the like-kind property
received.
D) Subtracted from the fair market value of the like-kind
property received.
E) None of the above.
37.
Rita and Todd exchange real estate in a like-kind exchange.
Rita’s property is subject to a $40,000 mortgage and has a basis
of $75,000 (fair market value of $112,000). She receives real
estate with a fair market value of $72,000 and Todd assumes the
mortgage. What is her recognized gain and adjusted basis for
the real estate received?
A) $0; $75,000.
B) $37,000; $72,000.
C) $37,000; $75,000.
D) $40,000; $115,000.
E) None of the above.
35. 38.
Which of the following qualify as replacement property under §
1033 (nonrecognition of gain from an involuntary conversion)?
1. An office building occupied by the taxpayer is condemned.
The building is to be replaced with a warehouse which is to be
used to store taxpayer’s inventory.
2. A shopping center leased to various retail tenants is
destroyed by a tornado. The shopping center is to be replaced
with a warehouse which is to be leased to various tenants.
3. An office building occupied by the taxpayer is destroyed
by a fire. The office building is to be replaced with a warehouse
which is to be leased to various tenants.
A) 1.
B) 2.
C) 3.
D) Only 1 and 2.
E) 1, 2, and 3.
39.
Virgil was leasing an apartment from Mauve, Inc. Mauve paid
Virgil $1,000 to cancel his lease and move out so that Mauve
could demolish the building. As a result:
A) Virgil has a $1,000 capital gain.
B) Virgil has a $1,000 capital loss.
C) Mauve has a $1,000 capital loss.
D) Mauve has a $1,000 capital gain.
E) None of the above.
40.
Harry inherited a residence from his mother when she died. The
mother had a tax basis of $566,000 for the residence when she
died and the residence was worth $433,000 at the date of her
death. Which of the statements below is correct?
A) Harry’s holding period for the residence includes his
mother’s holding period for the residence.
B) Harry’s holding period for the residence does not include
his mother’s holding period for the residence.
36. C) Harry’s holding period for the residence is automatically
long term.
D) b and c
E) None of the above.
41.
Sara is filing as head of household and has 2009 taxable income
of $27,000 which includes $13,000 of net long-tem capital gain.
The net long-term capital gain is made up of $10,000 25% gain
and $3,000 0%/15% gain. What is the tax on her taxable
income using the alternative tax method?
A) $0.
B) $2,345.
C) $3,003.
D) $4,003.
E) None of the above.
42.
Red Company had an involuntary conversion on December 23,
2009. The machinery had been acquired on April 1, 2007, for
$49,000 and its adjusted basis was $14,200. The machinery was
completely destroyed by fire and Red received $10,000 of
insurance proceeds for the machine and did not replace it. This
was Red’s only casualty or theft event for the year. As a result
of this event, Red initially has:
A) $10,000 § 1231 loss.
B) $10,000 § 1245 recapture gain.
C) $4,200 casualty loss.
D) $4,200 § 1231 loss.
E) None of the above.
43.
Which of the following statements is correct?
A) When depreciable property is gifted to another individual
taxpayer, the depreciation recapture potential is extinguished.
B) When depreciable property is inherited by a taxpayer, the
depreciation recapture potential is extinguished.
C) When corporate depreciable property is distributed as a
dividend, the depreciation recapture potential is generally not
37. recognized.
D) When depreciable property is contributed to charity, the
depreciation recapture potential has no effect on the amount of
the charitable contribution deduction.
E) All of the above are correct.
44.
Business equipment is purchased on March 10, 2008, used in the
business until September 29, 2008, and sold at a $23,000 loss
on October 10, 2008. The equipment was not suitable for the
work the business had purchased it for. The loss on the
disposition should have been reported in the 2008 Form 4797,
Part:
A) I.
B) II.
C) III.
D) IV.
E) This transaction would not be reported in the Form 4797.
45.
Which of the following taxpayers is required to use the accrual
method of accounting?
A) A retail business with average annual gross receipts of
$800,000.
B) A medical doctor with average annual gross receipts of $2
million.
C) An insurance agency with average annual gross receipts of
$2 million.
D) All of the above are required to use the accrual method.
E) None of the above is required to use the accrual method.
46.
The accrual method generally must be used to report income:
A) From long-term construction contracts.
B) Earned by an incorporated public accounting firm with gross
receipts in excess of $5 million.
C) Earned by partnership that has a partner that is a C
corporation.
D) A grocery store with average annual gross receipts of
38. $900,000.
E) None of the above.
47.
Which of the following statements regarding the matching
principle is correct?
A) The matching principle is never relevant to tax accounting.
B) The matching principle of financial accounting is an
important component of the cash method of accounting.
C) The matching principle of financial accounting is the
cornerstone of accrual basis tax accounting.
D) The matching principle of financial accounting is sometimes
relevant to timing deductions for an accrual basis taxpayer’s
recurring items.
E) None of the above.
48.
Which is not considered to be a type of deferred compensation?
A) § 401(k) plan.
B) Incentive stock option (ISO) plan.
C) Tax-deferred annuities.
D) Company-supplied automobile.
E) All of the above are types of deferred compensation.
49.
Which of the following characteristics does not describe a
defined contribution plan?
A) Includes a money purchase plan.
B) An account for each participant is established.
C) Exempt from funding requirements.
D) Subject to PBGC plan termination insurance rules.
E) All of the above describe a defined contribution plan.
50.
Susan is a self-employed accountant with a qualified defined
contribution plan (a Keogh plan). She has the following income
items for the year:
Earned income from self-employment $50,000
Dividend income 8,000
Interest income2,000
39. Net short-term capital gain 12,000
Adjusted gross income 72,000
What is the maximum amount Susan can deduct as a
contribution to her retirement plan in 2009, assuming the self-
employment tax rate is 15.3%?
A) $9,235.
B) $12,000.
C) $46,000.
D) $46,468.
E) None of the above.