No, you would not have a deduction for your taxes. In fact if the amount you gave your brother was over $13,000 you would have to pay a gift tax. 2. Which of the following items would be excluded from income? (a) $100 bill found under the sugar caddy at the restaurant (b) Inheritance of a car from your grandmother valued at $5,000.
He must declare the sales proceeds. $1,000 gain on sale. Ken's stock sale proceeds | Amount | Sale Proceeds ($32 x 1,000 shares) | $32,000 | Less Selling Expenses | $0 | Amount Realized | $32,000 | Less Tax basis ($31 x 1,000 shares) | $31,000 | Gain on sale | $1,000 | c.) Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years for $210,000. Gain of $14,500 Ken's Annuity | Amount | Total investment into annuity | $210,000 | Number of payments | 20 | Return on capital for the payments | $10,500 | Ken's
This year, Lacey, DLK’s president, decided to seek additional funds to finance DLK’s working capital. CME declined to extend additional funds because of the money already invested in DLK. High Tech Venture Capital Inc. proposed to lend DLK $100,000, but at a 10% premium over the prime rate. (Other software manufacturers in the same market can borrow at a 3% premium.) First Round Capital proposed to invest $50,000 of equity capital into DLK, but on the condition that the investment firm be granted the right to elect five members to DLK’s board of directors.
________________________________________ 7. Bob Fox, a cash basis taxpayer, earned a $140,000 salary as president of Jasper Corp. in 2010. In addition, on December 2 he was granted a $50,000 bonus by the board for his excellent performance in 2010. Bob asked the payroll manager to "hold" the bonus check until 2011. What is Bob's gross income for 2010?
ACC211 Chapter 4 Click Link Below To Buy: http://hwcampus.com/shop/acc211-chapter-4/ Brief Exercise 4-5 Your answer is correct. Stacy Corporation had income before income taxes for 2014 of $6,325,000. In addition, it suffered an unusual and infrequent pretax loss of $787,700 from a volcano eruption. The corporation’s tax rate is 30%. Prepare a partial income statement for Stacy beginning with income before income taxes.
Answer written communications between a CPA and a corporation regarding a tax shelter communications related to tax return preparation communications related to criminal tax evasion advice given regarding tax issues in a divorce Terry files his return on March 31. The return shows taxes of $6,000, and Terry pays this entire amount when he files his return. By what time must he file a claim of refund? Answer the later of two years from the return filing or three years from the date the tax is paid the later of three years from the return due date or two years from the date the tax is paid two years from the payment of tax date, if the IRS mails a notice of deficiency in the third year following the due date of the return four years from the payment of tax date, if the IRS mails a notice of deficiency Gerald requests an extension for filing his last year's individual income tax return. His tax liability is $10,000, of which $8,000 was withheld, leaving a balance due of $2,000 when he files on August 1 of the current year.
How much is suspended under the at-risk rules and the passive loss rules at the beginning of 2011? Question : (TCO 3) Wes’ at-risk amount in a passive activity is $25,000 at the beginning of the current year. His current loss from the activity is $35,000, and he has no passive activity income. At the end of the current year, which of the following statements is incorrect? Question : (TCO 2) The installment method applies to which of the following sales with payments being made in the year following the year of sale?
(3) Issue b) Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John's case? A married couple that files a joint return can exclude up to $500,000 of gain when they sell their house (if they have owned and lived in it for 2 out of the last 5 years). If this is the case and 100% of the gain is excludable they wouldn’t need to report this on their tax return. If only part of that is excludable then they would report the sale of their home on Schedule D of Form 1040 and put “Section 121 Exclusions” as the explanation. Since this new home will be their primary residence then they cannot utilize a 1031 tax exchange to defer the gain.
Calculate the amount of employee taxes withheld and prepare the company's journal entry to accrue the January salaries expense and withholding of January taxes. Answer: Salaries Expense | 8,000 | | FICA–Social Security Taxes Payable ($8,000 x .062) | | 496 | FICA–Medicare Taxes Payable ($8,000 x .0145) | | 116 | Employees' Federal Income Taxes Payable ($8,000 x .15) | | 1,200 | Accrued Payroll Payable | | 6,188 | 11. On December 1, 2007 Gates Company borrowed $45,000 cash from FirstBank on a 90-day, 9% note payable. a. Prepare Gate's general journal entry to record the issuance of the note payable.
1. | Question: | (TCO 1) Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the merchandise had been sold by Luffman to other customers. What amount of unrealized inter-company profit must be deferred by Luffman?