Advanced Financial Accounting
11th Edition
ISBN: 9780078025877
Author: Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting
Publisher: McGraw-Hill Education
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Chapter 16, Problem 16.11A.11E
To determine
Concept introduction:
Personal financial statement:Each partner is required to furnish personal financial statements to determine each partner’s personal solvency. A personal financial statement consists of, a statement of financial condition or a personal balance, sheet, and statement of change in net worth, or personal income statement. ASC 274 gives guidelines for the preparation of personal financial statements.
To choose: Correct answer to determine the amount to be reported as an investment in life insurance at December 31, 20X3
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Interview Notes
• Luther and Lexi are married and file a joint return.
Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of
2020. His monthly premiums are $300.
• In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax
through his employer's cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA
from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W.
• Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical
expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical.
• Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they
donated $250 by check to their local food bank. The food bank is a qualified organization and provided…
Interview Notes
Herb and Alice are married and file a joint return. Herb is 74 years old and Alice turns 72 in February 2023. Neither are blind.
•
•
.
Alice is confused about the Required Minimum Distribution rules, and wants to know when she should take her first
distribution from her IRA.
Both Herb and Alice are retired. Herb works part time as a greeter.
• Herb earned $12,000 in wages and has fully taxable pension income of $4,800. The couple also received Social Security
benefits of $46,000. They received no other income in 2023.
Herb and Alice's grandson, Stuart, lives with them while he attends the local university. Stuart is 20, a full-time student, and is
claimed as a dependent by his parents.
.
Herb, Alice and Stuart are U.S. citizens, lived in the United States all year, and have valid Social Security numbers.
1. What is Herb and Alice's standard deduction?
a. $27,700
Ob. $29,200
c. $29,550
d. $30,700
1. Charlene has self-only coverage in a qualifying high-deductible health insurance plan. She is 47 years old and wishes to contribute the maximum amount to her HSA. How much is she allowed to contribute and deduct in 2019?
a. $4,600
b. $1,300
c. $1,000
d. $3,500
e. $3,450
2 Martha and Rob, a married couple, under 50 years of age, have adjusted gross income on their 2019 joint income tax return of $45,000, before considering any IRA deduction. Martha and Rob have no earned income. What is the amount of Martha's maximum deductible IRA contribution?
a. $2,700
b. $5,500
c. $0
d. $3,500
e. $11,000
3. Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What is the maximum amount Donna can contribute to a Roth IRA? In your computations, carry out any division to two decimal places.
a. $5,500
b. $6,000
c. $3,850
d. $5,000
e. Some other amount
4. Marge has a Roth IRA held more than 5 years to which she has contributed…
Chapter 16 Solutions
Advanced Financial Accounting
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11A.1ECh. 16 - Prob. 16.11A.2ECh. 16 - Prob. 16.11A.3ECh. 16 - Prob. 16.11A.4ECh. 16 - Prob. 16.11A.5ECh. 16 - Prob. 16.11A.6ECh. 16 - Prob. 16.11A.7ECh. 16 - Prob. 16.11A.8ECh. 16 - Prob. 16.11A.9ECh. 16 - Prob. 16.11A.10ECh. 16 - Prob. 16.11A.11ECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
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