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A: When an individual or a company is unable to pay the loan amount then it's termed as default. It…
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A: Budgeting is a process to prepare the financial statement by the manager to estimate the…
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Q: arise by ratificatio
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A:
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Q: What is an inter vivos trust?
A: Inter Vivos Trust: An inter vivos trust is a kind of trust which is made in the lifetime of the…
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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- Robert A. Kliesh, age 41, is single and has no dependents. Roberts Social Security number is 111-11-1115. His address is 201 Front Street, Missoula, MT 59812. He does not contribute to the Presidential Election Campaign fund through the Form 1040. Robert works as a financial analyst and is very well regarded in his field. This year his salary totaled 650,000. His professional success has allowed him to purchase investments in real estate and corporate stocks and bonds. He also spends time volunteering with various organizations that help people develop financial literacy skills. Examination of Roberts financial records provides the following information for 2018. a. On January 16, Robert sold 1,000 shares of stock for a loss of 12,000. The stock was acquired 14 months ago for 17,000 and sold for 5,000. On February 15, he sold 400 shares of stock for a gain of 13,100. That stock was acquired in 2010 for 6,000 and sold for 19,100. b. He received 30,000 of interest on private activity bonds that he purchased in 2015. He also received 40,000 of interest on tax-exempt bonds that are not private activity bonds. c. Robert received gross rent income of 190,000 from an apartment complex he owns. He qualifies as an active participant in the activity. The property is at 50 Big Sky Resort Road, Big Sky, Montana, 59716. d. Expenses related to the apartment complex, acquired in 2009, were 225,000. e. Roberts taxable interest income, all from corporate bonds, totaled 23,000. Because he invests only in growth stocks, he receives no dividend income. f. He won 60,000 in the Montana lottery. g. Robert was the beneficiary of an 800,000 life insurance policy on the life of his uncle Jake. He received the proceeds in October. h. In February, Robert exercised an incentive stock option that was granted by his employer in 2015. The strike price of the option was 10 per share. On the date of exercise, the fair market value of the stock was 25 per share. Robert purchased 400 shares with the option; as of the end of the year, he still owns the stock (current FMV 20 per share). i. Robert incurred the following potential itemized deductions. 5,200 fair market value of stock contributed to the Red Cross (3,000 stock basis). He had owned the stock for two years. Robert also made cash contributions of 8,000 to qualified organizations during the year. 4,200 interest on consumer purchases. 8,900 state and local income tax. 15,000 of medical expenses that he paid on behalf of his administrative assistant, who unexpectedly took ill. 8,000 paid for lottery tickets associated with playing the state lottery. 750 contribution to the campaign of the Democratic candidate for governor of Montana. Because Robert lived in Montana, he paid no state-income tax. Robert made estimated Federal tax payments of 210,000, and he was covered by health insurance for the entire tax year. Use Forms 1040 and 6251 and Schedules A, B, D, and E to compute the tax liability (including AMT) for Robert A. Kliesh for 2018. Omit Forms 8283, 8582, and 8949. Suggested software: ProConnect Tax Online.Last year Nate opened a savings account with a deposit of $17,250. The account was in the name of Nate and Derrick, joint tenancy with the right of survivorship. Derrick did not contribute to the account, but this year he withdrew $5,750. Required: a-1. Has Nate made a complete gift? a-2. What is the amount of the complete gift, if any, and when was the gift made? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the amount of the complete gift, if any, and when was the gift made? Amount of complete gift At the time of withdrawalThe will of Josh O’Brien has the following stipulations:Antique collection goes to Ilsa Lunn.All money in the First Savings Bank goes to Richard Blaine.Cash of $9,000 goes to Nelson Tucker.All remaining assets are put into a trust fund with the income going to Lucy Van Jones. At her death, the principal is to be conveyed to Howard Amadeus.Identify the following:a. Remaindermanb. Trustorc. Demonstrative legacyd. General legacye. Specific legacyf. Life tenantg. Testator
- Marie Hardy’s will has the following provisions:“I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. I leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and proper-ties to Wilbur N. Ed.”a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate?b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash in the New Hampshire Savings and Loan, 1,200 shares of Coca-Cola stock, 600 shares of Xerox stock, and other property valued at $22,000. What distributions will be made from this estate?Carol, age 40, has an IRA with Blue Mutual Fund. Her balance in the fund is $150,000. She has heard good things about the management of Red Mutual Fund, so she opens a Red Fund IRA. Carol requests her balance from the Blue Fund be distributed to her on July 1, 20XX. She opted to have no withholding on the distribution. a. How much will Carol receive from the Blue Fund IRA? 150,000 v b. If the funds were distributed from a qualified retirement plan (not an IRA), how much would Carol receive? 150,000 x c. When is the last day Carol can roll over the amount received into the Red Fund IRA and avoid taxation in the current year? Assume the hardship waiver provisions does not apply. August 30 d. Assuming the funds were distributed from a qualified retirement plan, not from an IRA, how much will Carol have to contribute to the Red Fund IRA to avoid taxable income and any penalties?2. Juan Reyes was born on January 1, 1988. On Jan. 1 1989, his father starts a fund that is intended to help him in two ways. The fund is to be established by a payment of 2,000 on Jan1, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide his college education; it is provided that 3,000 shall be withdrawn for this purpose for each year for 5 year starting at the boy's 18th birthday. The remainder of the fund is accumulated until Juan is 30 yrs. old and is to be paid to him to help him purchase a house. If the fund earns 10%, how much will be paid to Juan on his 30th birthday? DRAW THE CASH FLOW DIAGRAM
- Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2018 traveling in Europe and was not a college student. He had gross income of 4,655 in 2018. Bill paid 4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the 4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2018, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service that she operates as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2018 Form 1040, Schedule C for Panda Enterprises shows revenues of 315,000, office expenses of 66,759, employee salary of 63,000, employee payroll taxes of 4,820, business meal expenses (before the 50% reduction) of 22,000, and rent expense of 34,000. The rent expense includes payments related to renting an office (30,000) and payments related to renting various equipment (4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Ashley personally purchases health insurance on herself and Bill. The premiums are 23,000 per year. Ashley has an extensive stock portfolio and has prepared the following analysis: Note: Ashley received a Form 1099B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual dividends received in 2018, and these are both ordinary dividends and qualified dividends. Ashley had 800 of interest income from State of Ohio bonds and 600 of interest income on her Wayne Savings Bank account. She paid 25,000 of alimony to her former husband. His Social Security number is 123-45-6788. Ashley itemizes her deductions and provides the following information, which may be relevant to her return: Ashley made a 26,000 estimated Federal income tax payment, does not want any of her taxes to finance presidential elections, has no foreign bank accounts or trusts, and wants any refund to be applied against her 2019 taxes. Compute Ashleys net tax payable or refund due for 2018. If you use tax forms for your computations, you will need Form 1040 and its Schedules 1, 4, 5, A, C, D, and SE and Form 8949. Ashley qualifies for the 199A deduction for qualified business income. Be sure to include that in your calculations. Suggested software: ProConnect Tax Online.Marvin had the following transactions: Salary Compensation of body injury due to car accident Bank loan (proceeds used to buy personal auto) Alimony payment to ex-wife (divorce settled in 2018) Child support payment Gift from aunt Gain from sale of city of Bloomington bonds 5,000 Interest from City of Bloomington Bonds Interest received on the U.S. Government bonds Interest received on corporate (GE company) bonds Lottery winnings Life insurance proceed after her grandmother died Calculate Marvin's AGI: $50,000 15200 10,000 6,000 12,000 20,000 500 1,500 350 500 150,0003. Mr. and Mrs. Mapagbigay made the following donations during 2021: • Jan 25 To Jon, their legitimate son, on account of marriage last Jan. 20, 2021, car worth 600,000 with P200,00 unpaid mortgage. % was assumed by the Jon. April 30 To Jun Jun, brother of Mr. Mapagbigay, his capital property inherited from their parents, worth P300,000 on account of marriage six months ago with a condition that Jun Jun will pay the donors tax thereon. • July 5 To Serendipity, daughter of Mrs. Mapagbigay by former marriage, on account of her marriage. Mrs. Mapagbigay's paraphernal property worth P200,000. August 15 Conjugal car of the couple worth P800,000 with unpaid mortgage of P400,000. ½ assumed by Serendipity and P600,000 worth of land to their fourth sons of account of his graduation. Requirement: Calculate the donors tax due and payable at each donation period.
- Marie Hardy's will has the following provisions: "I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed." a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate? b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash in the New Hampshire Savings and Loan, 1,200 shares of Coca-Cola stock, 600 shares of Xerox stock, and other property valued at $22,000. What distributions will be made from this estate? (Make estate distributions in the order mentioned…Marie Hardy’s will has the following provisions: "I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. I leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed." a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate? (Make estate distributions in the order mentioned in the question.) cash Jack 41,000 cash Suzanne 18,000 Coca-Cola Cindy 800 Shares House Dennis 0 Other property Wilbur ???? The problem needs a $$ amount for Wilbur, and I cannot get it b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash…Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Аmount Donee Amount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping 2. Mr. Williams (a tennis partner, 55 not a business prospect or client) 3. Mr. Sample (a client) received $22 and Mrs. Sample (nonclient spouse of Mr. Sample) 42 received a gift valued at $20 4. Various customers (calendars 300 costing $3 each with the company name on them) 5. Mr. Shiver (an employee gift, 175 a watch, for 25 years of continuous service) Total business gift deduction