Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 35AP
To determine
Calculate the AGI of Mr. and Mrs. M.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75
percent, respectively.
UpAHill Corporation (an S Corporation)
Income Statement
December 31, Year 1 and Year 2
Sales revenue
Cost of goods sold
Salary to owners Jack and Jill
Employee wages
Depreciation expense
Miscellaneous expenses
Interest income (related to business)
Qualified dividend income
Overall net income
Ordinary income
Dividend income
Interest income
Allocated wages
Unadjusted basis of qualified property
a. What amount of ordinary income and separately stated items are allocated to them for years 1
and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified
property (unadjusted basis) in both years.
$
$
Year 1
Year 2
$ 310,000
$ 175,000
(60,000) (85,000)
(40,000) (50,000)
(15,000)
(20,000)
(10,000)
(15,000)
(9,000)
2,500
1,000
$ 45,000 $ 134,500
Answer is complete but not entirely correct.
Jack
Jill
$
(7,500)
2,000
500
44,500 $
$
25 × $
$ 11,125 $
Year 1
Year 2…
Sarah owns a jewelry store and prepares her financial statements using the accrual method of accounting. However, she completes her Schedule C on her individual income tax return using the cash method. Given the following accrual method information from the income statement and balance sheet, determine her business net income under the cash method for tax reporting purposes.
Accrual method net income $40,000
Beginning accounts receivable $60,000
Ending accounts receivable $37,000
Beginning accounts payable $24,000
Ending accounts payable $30,000
Sarah owns a jewelry store and prepares her financial statements using the accrual method of accounting. However, she completes her Schedule C on her individual income tax return using the cash method. Given the following accrual method information from the income statement and balance sheet, determine her business net income under the cash method for tax reporting purposes.
Accrual method net income $40,000
Beginning accounts receivable…
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022, she sells the following long-term assets used in
her business:
Asset
Building
Equipment
Sales Price
$ 233,800
83,800
Description
Taxable income
Tax liability
Cost
$ 203,800
151,800
Lily's taxable income before these transactions is $194,300. What are Lily's taxable income and tax liability for the year? Use Tax Rate
Schedule for reference.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
$
Amount
Accumulated
Depreciation
$ 55,800
26,800
238,900
Chapter 16 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 16 - Contrast the income tax consequences of the yields...Ch. 16 - Prob. 2QPDCh. 16 - Mrs. Buckley, age 74, has 100,000 in a certificate...Ch. 16 - Ms. Quint sadly concluded that a 7,500 debt owed...Ch. 16 - Prob. 5QPDCh. 16 - Prob. 6QPDCh. 16 - Discuss the potential effect of the passive...Ch. 16 - Prob. 8QPDCh. 16 - Prob. 9QPDCh. 16 - Prob. 10QPD
Ch. 16 - Prob. 11QPDCh. 16 - Prob. 1APCh. 16 - Mr. and Mrs. Lays taxable income is 679,000, which...Ch. 16 - Dianne Stacy, a single taxpayer, has 272,000...Ch. 16 - Prob. 4APCh. 16 - Mrs. Nunn, who has a 24 percent marginal tax rate...Ch. 16 - Refer to the preceding problem and assume that...Ch. 16 - Mrs. Yue, a resident of Virginia, paid 50,000 for...Ch. 16 - Ms. Pay, who has a 40.8 percent marginal tax rate...Ch. 16 - Mr. Jolly received the 100,000 face amount on the...Ch. 16 - Prob. 10APCh. 16 - Prob. 11APCh. 16 - Prob. 12APCh. 16 - Prob. 13APCh. 16 - Fifteen years ago, Mr. Fairhold paid 50,000 for a...Ch. 16 - Refer to the facts in the preceding problem....Ch. 16 - Prob. 16APCh. 16 - Prob. 17APCh. 16 - Three years ago, Mrs. Gattis loaned 10,000 to Mr....Ch. 16 - Prob. 19APCh. 16 - Prob. 20APCh. 16 - Mrs. Beard recognized a 12,290 capital loss on the...Ch. 16 - Prob. 22APCh. 16 - Prob. 23APCh. 16 - Mr. and Mrs. Revel had 206,200 AGI before...Ch. 16 - Prob. 25APCh. 16 - Mr. Fox, a single taxpayer, recognized a 64,000...Ch. 16 - Mrs. Cox, a head of household, earned a 313,000...Ch. 16 - Prob. 28APCh. 16 - Prob. 29APCh. 16 - Mr. Dunn, who has a 32 percent marginal rate on...Ch. 16 - Prob. 31APCh. 16 - Prob. 32APCh. 16 - Prob. 33APCh. 16 - Prob. 34APCh. 16 - Prob. 35APCh. 16 - Prob. 36APCh. 16 - Ms. Turney owns a one-half interest in an...Ch. 16 - Prob. 38APCh. 16 - Prob. 39APCh. 16 - Prob. 40APCh. 16 - Mr. Erwins marginal tax rate on ordinary income is...Ch. 16 - Prob. 42APCh. 16 - Prob. 43APCh. 16 - Prob. 44APCh. 16 - Prob. 45APCh. 16 - Mrs. Wolter, an unmarried individual, owns...Ch. 16 - Prob. 1IRPCh. 16 - Prob. 2IRPCh. 16 - Prob. 3IRPCh. 16 - Prob. 4IRPCh. 16 - Prob. 5IRPCh. 16 - Two years ago, Ms. Eager loaned 3,500 to her...Ch. 16 - Prob. 7IRPCh. 16 - This year, Ms. Tan had a 29,000 capital loss...Ch. 16 - Prob. 9IRPCh. 16 - Mr. Pugh has a 7,900 adjusted basis in his limited...Ch. 16 - Prob. 11IRPCh. 16 - Mr. Durst died on March 8. His taxable estate...Ch. 16 - Prob. 13IRPCh. 16 - Prob. 1RPCh. 16 - Prob. 2RPCh. 16 - Prob. 1TPCCh. 16 - Ms. Kaspari, who has a 24 percent marginal rate on...Ch. 16 - Prob. 3TPCCh. 16 - Prob. 4TPC
Knowledge Booster
Similar questions
- Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $ 233,400 83,400 Description Taxable income Tax liability Lily's taxable income before these transactions is $193,900. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Cost $ 203,400 151,400 $ Amount Accumulated Depreciation $ 55,400 26,400 237,700arrow_forwarda. Determine Joe and Jessie's AGI and taxable income for the year. Note: Round your intermediate calculations to the nearest whole dollar amount.arrow_forwardGopal derived the following income for year 2020: (i) Interest income from loan to his company XYZ Pte Ltd. The company's financial year ended on 30 June 2020.(ii) Business income from his sole proprietorship business, Gopal and Sons. The financial year of his sole proprietorship business ended on 30 June 2020.(iii) Rental income from his property at 116 Race Course Road.(iv) Salary from XYZ Pte Ltd. For Year of Assessment 2021, the basis period of Gopal's various income should be Question 4 options: A) 1 January to 31 December 2020 for all his income sources. B) 1 July 2019 to 30 June 2020 for business income and 1 January to 31 December 2020 for interest income, rental income and salary. C) 1 January to 30 June 2020 for interest and business income and 1 January to 31 December 2020 for rental and salary. D) 1 July 2019 to 30 June 2020 for business income and interest income…arrow_forward
- Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business: Sales Asset Price Cost Building $234,200 $204,200 Equipment 84,200 152,200 Accumulated Depreciation $56,200 27,200 Lily's taxable income before these transactions is $164,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)arrow_forwarda. Determine Joe and Jessie's AGI and taxable income for the year. (Round your intermediate calculations to the nearest whole dollar amount.) Joe and Jessie's AGI Joe and Jessie's Taxable incomearrow_forwardBelow is a graph of the Robinson's annual expenses. How much will the Robinsons pay in state/local taxes if their gross annual household income is S85,420? a.$3.559.17 b. $8,542.00 C. $20.500.80 d. $29,897.00arrow_forward
- Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,150 in investment expenses. They also incur $3,250 of investment interest expense during the year. The Porters’ income for the year consists of $153,000 in salary and $2,710 of interest income. a. What is the amount of the Porters’ investment interest expense deduction for the year? b. What would their investment interest expense deduction be if they also had a ($2,070) long-term capital loss?arrow_forwardWhich of the following will result in the recognition of gross income? Gail's employer allows her to set aside $ 4,000 from her wages to cover the cost of daycare for Gail's four-year-old daughter. Gail's daycare costs are $ 4,300 for the year. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $ 1,200. The cost of the sofa to the furniture store is $ 1,100 and the sofa normally sells for $ 1,700. Jayden's employer purchases her commuting pass for the subway at a cost of $ 225 per month. Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys. None of the above will result in recognition of gross income.arrow_forwardMr. and Ms. Sumara have the following income items: Mr. Sumara's Schedule C net profit Ms. Sunara's Schedule C net loss Ms. Sunara's taxable pension Interest income Mr. Sumara's self-employment tax was $12,903. The couple has $29,050 itemized deductions. Ms. Sumara's Schedule C net business profit is qualified business income (non-service). $ 91,320 (7,480) 32,300 21,200 Required: Compute the couple's income tax on a joint return. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and Standard Deduction Table Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. AGI Taxable Income Income Tax Amountarrow_forward
- Adela and James are married and file tax returns jointly. Last year Adela earned $45,500 and James earned $44,700 in wages. Additional tax information for the year is as follows: Interest earned: $1,200, State and local income taxes paid: $4,230, mortgage interest: $6,200, contributions to charity: $1,400, contributions to retirement plans: $3,350. From this information, calculate their taxable income (in $).arrow_forwardUse the following Total Tax / Annual Income relationship to determine which of the following is Beverly's total tax for last year if her income last was $155,000. What total income tax did Beverly pay in income tax. In the image.arrow_forwardGrady is a member of a large family and received the following payments this year. For each payment, determine whether the payment constitutes realized income and determine the amount of each payment Grady must include in his gross income. (Leave no answer blank. Enter zero if applicable.) a. A gift of $21, 600 from Grady's grandfather.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you