CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Chapter 2, Problem 69IIP
To determine
Identify the tax issue posed by the facts presented and ascertain the possible tax consequence of issue identified.
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Allie started her new job in 2020. She received the following payments or benefits paid on her behalf by her employer.
$84,000 in salary.
$ 6,000 contribution to employer qualified pension plan for her.
$ 9,250 contribution to her employer’s qualified health insurance plan for her.
$ 8,400 in bonus for the year (paid in January 2021 for 2020)
$7,500 Board of Director’s fee since she is a member of the company BOD.
$ 800 for group term life insurance coverage of $50,000
$ 1,400 for a whole life insurance policy with a face value of $100,000
$ 2,200 for disability insurance premiums (no elections made)
What is Allie’s gross income for 2020?
Latanya Brown is an employee of Giant Computers, where her job responsibilities include selling computers and software to
customers. Latanya is married filing jointly with two dependents under 17. She receives an annual salary of $42,000 and receives a 3
percent commission on all sales. During the semimonthly pay period ending September 30, 2021, Latanya sold $20,000 of computers
and software.
Required:
Complete the payroll register for the September 30 pay period with a pay date of October 5.
P/R End Date:
Check Date:
Name
Latanya Brown
9/30/2021
10/5/2021
Filing Status.
MJ
Dependents
2<17
Hourly Rate or
Period Wage
Company Name:
Number of
Regular Hours
Giant Computers
Gross
Number of
Regular Overtime
Overtime Hours Commissions Earnings Earnings Earnings
Frances Newberry is the payroll accountant for Pack-It Services of Jackson, Arizona. The employees of Pack-It Services are paid
semimonthly. An employee, Glen Riley, comes to her on November 6 and requests a pay advance of $750, which he will pay back in
equal parts on the November 15 and December 15 paychecks. Glen is married filing jointly (There is no information for Step 4 and the
W-4 was received in 2020. Box 2 is checked) with three dependents under 17 and is paid $50,000 per year. He contributes 3 percent
of his pay to a 401(k) and has $125 per paycheck deducted for a Section 125 plan.
Required:
Compute his net pay on his November 15 paycheck. The applicable state income tax rate is 2.88 percent. Use the percentage method
in Appendix C to determine the federal income tax. (Round your intermediate calculations and final answer to 2 decimal places.)
Net pay
Chapter 2 Solutions
CONCEPTS IN FED.TAX.,2020-W/ACCESS
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - What is an arms-length transaction? What is its...Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Sheila, a single taxpayer, is a retired computer...Ch. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Chelsea, who is single, purchases land for...Ch. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - Prob. 45PCh. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48PCh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Determine the taxpayers adjusted basis in each of...Ch. 2 - Prob. 62PCh. 2 - Prob. 63IIPCh. 2 - Prob. 64IIPCh. 2 - Prob. 65IIPCh. 2 - Jerry and his wife, Joanie, own a successful...Ch. 2 - Prob. 67IIPCh. 2 - Prob. 68IIPCh. 2 - Prob. 69IIPCh. 2 - Prob. 70IIPCh. 2 - Prob. 71IIPCh. 2 - Prob. 79DCCh. 2 - Prob. 80DCCh. 2 - Prob. 81TPC
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