Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 89EDC
To determine
Discuss the obligations under the Statements on Standards for Tax Services, state the standards that may apply to this situation, and the result from the application of the standard(s).
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
At the start of the 2019 tax year, Franny had $40,000 trading stock on hand in her café. Throughout the year she bought a further $150,000 worth of trading stock and recorded sales of $280,000. On 30 June 2019, she had trading stock on hand valued at $50,000. What is Franny’s Taxable Income for the 2019 financial year?
Select one:
a. $280,000
b. $200,000
c. $140,000
d. $130,000
Review the following scenario. Then, choose the response that correctly completes the last sentence describing how revenue from the sale of stock affects the taxpayer's taxable income, and how the revenue is taxed.
Nadine bought 100 shares of PIE stock for $15 a share on March 14, 2020. On August 1, 2021, she noticed that the stock had increased in value to $25 a share. She decided to sell all of her shares. Nadine's only other income for the year consisted of $68,000 in wages. She will use the single filing status.
Nadine's revenue from the sale of stock will increase her taxable income by
Pedro is about to prepare and file his annual income tax return for the year ending December 21, 2020. Pedro is an emloyed principal and he practice his profession and as a consultant.
What BIR Form will be used?
Chapter 4 Solutions
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - LO2 Herman inherits stock with a fair market value...Ch. 4 - LO2 Fatima inherits a rental property with a fair...Ch. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65IIPCh. 4 - Prob. 66IIPCh. 4 - Prob. 67IIPCh. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - Prob. 71IIPCh. 4 - Prob. 72IIPCh. 4 - Prob. 73IIPCh. 4 - Prob. 74IIPCh. 4 - Prob. 75IIPCh. 4 - Prob. 76IIPCh. 4 - Prob. 77TACh. 4 - Prob. 80TACh. 4 - Reggie receives a 2-year scholarship to Big...Ch. 4 - Prob. 83IPCh. 4 - Calculate Carmins adjusted gross income on her...Ch. 4 - Prob. 85DCCh. 4 - Marlo and Merlins son, Alex, needs 20,000 to start...Ch. 4 - Prob. 87TPCCh. 4 - Prob. 88TPCCh. 4 - Prob. 89EDC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Soong, single and age 32, had the following items for the tax year 2019: Salary of 30,000. Interest income from U.S. government bonds of 2,000. Dividends from a foreign corporation of 500. Sale of small business 1244 stock on October 20, 2019, for 20,000. The stock had been acquired two years earlier for 65,000. Business bad debt of 4,000. Nonbusiness bad debt of 5,000. Sale of small business 1244 stock on November 12, 2019, for 4,000. The stock had been acquired on June 5, 2019, for 800. Sale of preferred stock on December 4, 2019, for 40,000. The stock was acquired four years ago for 18,000. Total itemized deductions of 25,000 (no casualty or theft). a. Determine Soong's NOL for 2019- b. Assuming that Soong had taxable income for each of the last five years, deter mine to which years the 2019 NOL should be applied.arrow_forwardMary is a self-employed attorney. a. Assuming that Mary earns $27,500 from her practice, calculate the total amount of her self-employment tax liability for 2020. b. Assuming that Mary earns $163,000 from her practice, calculate the total amount of her self-employment tax liability for 2020. In your calculations, round all calculations to the nearest two decimals. These answers do not need to be rounded to the nearest whole dollar.arrow_forwardPedro is about to prepare and file his annual income tax return for the year ending December 21, 2020. Pedro is an emloyed engineering manager and he practice his profession and as a consultant. What BIR Form will be used?arrow_forward
- For the following taxpayers, indicate whether the taxpayer should file a tax return and why. a. Robert earned $50,000 this year as a staff accountant. His estimated tax liability is $4,500, and he expects to receive a $500 tax refund. b. Amy earned $4,000 this year working part-time. She will have no federal tax liability and has not made any federal tax payments. c. Ty earned $2,500 this summer and had $200 of federal taxes withheld from his paycheck. He will have no federal tax liability this year. d. Startup Corporation had a $50,000 loss this year. e. The Walker Family Trust earned $500 of gross income this year.arrow_forwardMichael is a self-employed certified public accountant and began his business in 2021. During 2021, he purchased a $1,000 computer and a $400 desk chair. He also paid $7,000 in legal/incorporation fees and spent $14,000 for a new HVAC system for the office building he owns. Which purchase(s) can he expense in 2021 without limitation, if he has the appropriate accounting procedures in place, prior to the beginning of the tax year? (a) Computer and desk only. (b) Computer, desk, legal/incorporation fees only. (c) Computer, desk, legal/incorporation fees, HVAC. (d) Legal/incorporation fees, HVAC only.arrow_forwardFor 2019, Roberta is a self-employed truck driver with earnings of $47,000 from her business. During the year, Roberta received $2,500 in interest inceom and dividends of $500. She also sold investment property and recognized a $1,500 gain. What is the amount of Roberta's self employment tax (Social Security and Medicare taxes) liability for 2019?arrow_forward
- Carla Morrison (SIN: 805 125 127); was born on May 2, 1999. She is single and lives at 10 Tucker Court, Toronto Ontario A4B CXD. Carla approached you and asked your help to prepare her Individual T-1 tax return for 2020. Carla provided you with additional information for the period ending December 31, 2020 as given below: A. Last year (2020) Carla finished high school and started working on sales at a local start-up company (Fresh Flowers Co) owned by a family friend. She excels at sales and was prepared to forgo school to help her family friend. (Please refer to the T4 Slip for details). B. Throughout the year, Carla contributed $10,000 to a registered retirement savings plan (RRSP) at a local bank. Over the years she had accumulated RRSP room and it stood at $25,000. Carla has determined that she has the RRSP deduction limit to claim the full amount on her tax return. To complete this return, the following information slip received for 2020 is provided herewith: See below excerpt…arrow_forwardMr. Asif, a Salaried Individual, has following information for the Tax Year 2020. His Annual Tax Certificate from Employer shows, Annual Gross Salaried Income of Rs. 950,000 His employer has deducted WHT under Section 149 (Salary of Employee) Rs. 17200. His Mobile Tax Certificate shows WHT under Section 236 (Prepaid Telephone Card) Rs. 889. He received share of Profit from Investment in a Business Rs. 150,000. The details of his Personal Assets as follow: Balances June 30, 2019 June 30, 2020 Cash at Hand 50,000 50,000 Bank Account (Salaried) 121,000 159,000 Bank Account (Saving) 150,000 265,000 Prize Bond 255,000 255,000 Investment in Business 2,000,000 2,000,000 Property (Residential) 3,200,000 3,200,000 Calculate: Total Income Tax Chargeable (Annual Income Tax) Admitted Income Tax (Remaining Tax Liability) His estimated Personal Expenses (Reconciliation of Personal Assets)arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT