. A taxpayer paid the following salaries during the year 70,000 Salaries of administrative employees 40,000 Salaries of sales and marketing employees 120,000 Salaries of factory production workers Compute the deductible salaries expense

Identify in which situation income was constructively received in 2022. Situation A taxpayer received a check on December 31, 2022. Deposited the check to their bank account on January 1, 2023. A taxpayer sold their home on December 20, 2022. Payment was received from the escrow company on January 5, 2023. A taxpayer's employer offers the taxpayer the option to receive their year-end bonus on either December 15, 2022 or January 15, 2023. The taxpayer chooses to defer it to January 15, 2023. A taxpayer who performs consulting services was informed by a client that a check for services they had performed was ready to be picked up on December 15, 2022. However, the taxpayer was on vacation and unable to pick it up until January 3, 2023. Was income constructively received? (Yes/No)

Sparrow Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2021, its second year of operation: Transactions Cost Taxable income $330,000 Federal income tax liability paid $69,300 Tax-exempt interest income $5,000 Meals expense provided by a restaurant (total) $3,000 Premiums paid on key employee life insurance $3,500 Increase in cash surrender value attributable to life insurance premiums $700 Proceeds from key employee life insurance policy $130,000 Cash surrender value of life insurance policy at distribution $20,000 Excess of capitol losses over capital gains $13,000 MACRS deduction $26,000 Straight-line depreciation using ADS lives $16,000 Section 179 expense elected during 2020 $25,000 Dividends received from domestic corporations (less than 20% owned) $35,000 Sparrow uses the LIFO inventory method, and its LIFO recapture amount increased by $10,000 during 2021. In addition, Sparrow sold property on installment…

Amounts to Be Reported on Wage and Tax Statements (Form W-2)                             Gross   Federal Income   Social Security   Medicare     Employee   Earnings   Tax Withheld   Tax Withheld   Tax Withheld                           Arnett    $    8,250.00    $   1,416.00    $     495.00    $     123.75     Cruz        57,600.00        9,996.00        3,456.00           864.00     Edwards        24,000.00        4,776.00        1,440.00           360.00     Harvin          6,000.00        1,070.00           360.00             90.00     Nicks       110,000.00       25,850.00        6,600.00        1,650.00     Shiancoe       116,000.00       26,000.00        6,960.00        1,740.00     Ward          7,830.00        1,314.00           469.80           117.45     Totals    $ 329,680.00        $ 19,780.80    $   4,945.20                                                                     Employer Payroll Taxes                       a. Social security…