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nnnnooo1

Business Finance

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total 9 question needed

there are the numbers that i needed. (24,27,28,30,32,34,38,42,44)

i have attached the questions i need 100% correct and quality work. please

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agreement. 24. LO2 Herman inherits stock with a fair market value of $100,000 from his grand- father on March 1. On May 1, Herman sells half the stock at a gain of $10,000 and invests the $60,000 proceeds in Jordan County school bonds. The bonds' annual interest rate is 6 percent which is paid on July 31 and January 31. On October 15, Herman receives a $2,200 dividend on the remaining shares of stock. How much gross income does Herman have from these transactions? n fir market value of $90,000 from tax consequences of the receipt 27. LO2 Earl is a student at Aggie Tech. He receives a $5,000 general scholarship for his outstanding grades in previous years. Earl is also a residence hall assistant, for which he receives a $1,000 tuition reduction and free room and board worth $6,000 per year. Earl's annual costs for tuition, books, and supplies are $8,000. Does Earl have any taxable income from the scholarship or the free room and board: 28. LO2 Assume the same facts as in problem 27, except that Earl is not a residence hall assistant and his general scholarship is for 10,000. 97 500 scholarshin tn State University. Discuss the taxability work 10 hours per week for a 30. LO2 Determine whether the taxpayers in each of the following situations have realized taxable income: a. Alexander inherited a tract of land from his uncle who died during the current year. A friend of Alexander's who is a petroleum engineer told him he thought there might be oil on the land. Alexander had the land surveyed, and an oil deposit worth an estimated $5,000,000 was discovered on the property. b. Mickey was given two tickets to the World Series by a friend. Mickey sold the tickets for $500 apiece. Hannah is the purchasing agent for Slim Diet Centers. Harold, a salesman who does considerable business with Hannah, gave her a set of golf clubs worth $750. Harold told Hannah that he was giving her the clubs to show his appreciation for being such a good friend throughout their business dealings. d. Melanie's father died during the current year. She was the beneficiary of a $200,000 insurance policy on her father's life. She received the proceeds on August 1 and immediately invested in a bank certificate of deposit with a 9 percent annual earnings rate. C. he tax of loyal service and contributio consequences of the payments to Penelope and her on to the pay pay- $6,000 ild? 32. LO2 Lucinda, a welder for Big Auto, Inc., dies in an automobile accident spouse of any employee who dies. In addition to the $5,000 payment, Big Auto March 14 of this year. Big Auto has a company policy of paying $5,000 Lucinda had earned before her death. Harvey also collects $120,000 from a group pays Harvey, Lucinda's husband, $1,600 in salary and $1,100 in vacation Big Auto had matched Lucinda's contributions to the plan. The plan lets the ben package. Lucinda had contributed to a qualified employer-sponsored pension plan. eficiary of an employee who dies before payments begin take the plan balance as term life insurance policy Big Auto provided as part of Lucinda's compensation a lump sum. Write a letter to Harvey explaining the tax consequences of each ment he receives. 33. LO3 Joan is a single individual who works for Big Petroleum, Inc. During all of 2018, she is stationed in West Africa. She pays West African taxes of $20,000 on her salary from Big Petroleum is $36,000. How should Joan treat the salary she her Big Petroleum salary of $92,000. Her taxable income without considering receives from Big Petroleum on her 2018 U.S. tax return? 34. LO3 Boris is an unmarried systems specialist with a public accounting firm During all of 2018, he is on temporary assignment in London. He pays $21,000 in British income tax on his $100,000 salary. Boris knows little about taxes and seeks your advice on the taxability of the salary he earns while in London. Write Boris a memorandum explaining the tax treatment of his London salary. Assume that Boris has no other income sources and that he does not itemize deductions, a. effect of Hamid's participation in 42. L04 Tia is married and is employed by Carrera Auto Parts. In 2018, established high-deductible health insurance for all its employees. The plan has a $2,700 deductible for married taxpayers. Carrera also contributes 5 percent of each employee's salary to a Health Savings Account. Tia's salary is $30,000 in 2018 and $32,000 in 2019. Tia makes the maximum allowable contribution to her HSA in 2018 and 2019. She received $600 from the HSA for her 2018 medical expenses. In 2019, she spends $1,400 on medical expenses from her HSA. The MSA earns $28 in 2018 and $46 in 2019. What is the effect of the HSA transactions on Tia's adjusted gross income? b. How much does Tia have in her HSA account at the end of 2019? 43. L04 Adam works during the summer as a fire watcher for the Oregon forest service. As such he spends three weeks in the woods in a forest service watchtower and then gets a week off. Because of the remoteness of the location, groceries are flown in by helicopter to Adam each week. Does Adam have any taxable income from this arrangement? Explain. 44. L04 Don is the production manager for Corporate Manufacturing Facilities (CMF). CMF works three production shifts per day. Because Don is so integral to CMF's operations, the company requires him to live in housing that CMF owns so he can be available for any emergencies that arise throughout the day. The housing is located four blocks from the CMF plant. Is Don taxed on the value of the hous- ing? Explain.
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Explanation & Answer

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24. When stating or calculating his gross income, Herman should include the dividend
income of $2,200 and also the capital gain of $10,000. In the income, the inherited stock is
not included, but any more earnings from the stock should count as part of the income
since it is not a part of the inheritance. The interest received from Jordan County School
bonds is not included in the bond interest for the municipal.
27.Earl’s income is $7,000, and this is from the calculation of ;
=$6000+$1000,
=$7,000
which are from the free room and board receipts. Supposing the room and board were taken to be
scholarship, such payments could still be counted since they are meant to cater for costs that are
not categorized as direct costs of education. The $5,000 scholarship amount is not counted since
it does not add up to the actual direct costs.
28. In the case for scholarships, they can be excluded up to the total amount of the direct
education costs. For case a, the scholarship is less than the 8000 of direct costs and is excludable
in full. In the second case, case b, the scholarship exceeds Earl’s direct costs and will be taxed
the excess which ...


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