V4. When Betty was diagnosed as having a terminal illness, she sold her life insurance policy to Insurance Purchase, Inc., a company that is licensed to invest in these types of contracts. Betty sold the policy for $32,000, and Insurance Purchase, Inc. became the beneficiary. She had paid total premiums of $19,000. Betty died eight months after the sale. Insurance Purchase, Inc., collected $50,000 on the policy. The company had paid additional premiums of $4,000 on the policy. Betty's estate is not required to recognize a $13,000 gain from the sale of her life insurance policy; and Insurance Purchase, Inc. is required to recognize a $14,000 gain from the insurance policy. True or False. Please explain

Sonali and Nilesh are married. On December 30th of last year, Sonali contributed $25,000 to a spousal RRSP under which Nilesh is the annuitant. At that time, she also contributed $10,000 to her own individual RRSP. No further contributions were made to the spousal RRSP. Assume on June 15th of next year, the couple has a financial emergency that requires Nilesh to withdraw $15,000 from his spousal RRSP and Sonali to withdraw $10,000 from her individual RRSP. Based on these transactions, what statement is correct? Question 27 options: a) Sonali must report $10,000 on her tax return for next year. b) Nilesh must report $15,000 on his tax return for next year. c) Sonali must report $25,000 on her tax return for next year. d) Nilesh was able to claim a $25,000 RRSP deduction for the previous tax year.

Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005.   Donee Item Cost FMV Hobbs Medical Center IBM stock $ 8,200 $ 54,000 State Museum Antique painting   6,600   3,960 A needy family Food and clothes   720   430 United Way Cash   40,000   40,000     Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. Calvin’s AGI is $129,000. Charitable contribution deduction? Carryover?

To improve her body shape Ms. Ganda decided to undergo procedure and sought the services of the Body Beautiful, a clinic operated outside the hospital and owned by Below Medical Center Group Company. Body Beautiful charged Ms. Ganda the amount of P224,000 (inclusive of 12% but exclusive of excise tax) for the service rendered. Ms. Ganda bought residential house for P4,000,000. He paid P1,000,000 down and mortgage back the property as security for the P3,000,000. REQUIRED:1) How much is the DST from the mortgage? 2) How much is the Excise tax?

Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: (Click the icon to view the premiums attributable to Ursula.) During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. Read the requirements. Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.) 0 $4,100 Ursula must report income of She must report…

Max, age 28, is insured under an individual medical expense policy that is part of a preferred provider organization (PPO) network. The policy has a calendar- year deductible of $1,000, 75/25 percent coinsurance, and an annual out-of-pocket limit of $2,000. Max recently had outpatient arthroscopic surgery on his knee, which he injured in a skiing accident. The surgery was performed in an outpatient surgical center. Max incurred the following medical expenses. (Assume that the charges shown are the charges approved by Max s insurer and that all providers are in the PPO network.) Outpatient X-rays and diagnostic tests................................................ $800 Covered charges in the surgical center ................................................ $12,000 Surgeon s fee.............................................................................. $3,000 Outpatient prescription drugs............................................................ $400 Physical…

29 Leonard withdrew $10,000 from his RRSP under the Home Buyers' Plan on August 12th of last year and used the amount as a deposit on the purchase of a new house. However, he realized that he needed another $8,000 to help finance the downpayment and made a second HBP withdrawal on September 25th of last year. He will take possession of the property on April 1st of this year. On January 20th of this year, he withdrew another $7,000 under the HBP to buy some appliances. Based on his withdrawals, how much does Leonard have to include as taxable income? a) $0 b) $5,000 c) $7,000 d) $15,000

30. Gina has 250/500/50 liability insurance and $50,000 PIP insurance. Shechanges lanes too quickly, hits the metal guard rail, and the hits a tour bus.Four people are seriously injured hurt and sue her. Twenty others have minorinjuries. Gina's boyfriend, who was in the car, is hurt and requires $19,000worth of medical attention. What insurance covers this, and how much will thecompany pay? A. $19,000; BIB. $19,000; PIPC. $50,000; PIPD. $50,000; BI

Agnes transfers a four-apartment investment condominium subject to a non-recourse mortgage to Brad. Brad, in return, transfers to Agnes a residential rental apartment building subject to a non-recourse mortgage. Agnes's condo cost $500,000 and she has taken depreciation of $25,000. The amount of the non-recourse debt is $475,000. The fair market value of the condo is $600,000. Brad's apartment building cost $700,000 and has a current fair market value of $600,000. He has taken depreciation deductions of $100,000 and the amount of the non-recourse debt is $600,000. As a result of this exchange transaction Brad has received boot of $125,000. Agnes has received boot of $125,000. Brad has given up boot of $125,000. Agnes has given up boot of $475,000.

Gabby’s records contain the following information for 2020: 1. Donated stock having a fair market value of $3,600 to a qualified charitable organization. She acquired the stock five months previously at a cost of $2,400. 2. Paid $700 to a church so her daughter can attend summer camp. 3. Donated a stock having a fair market value of $ 2,000 to a qualified organization. She acquired the stock 10 years ago for $ 8,000. 4. Donated $ 50 to the Democratic National Political Party. 5. Drove 600 miles in her personal auto directly related to services she performed for her church. 6. Gabby spent 100 hours of volunteer time on # 4 above. She makes $ 25 per hour. How much is Gabby’s charitable contribution deduction? a. $ 11,652b. $ 10,534c. $ 10,484d. $ 4,484e. $ 4,450