MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
20th Edition
ISBN: 9781259969614
Author: SPILKER
Publisher: MCG
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Textbook Question
Chapter 5, Problem 64P
Cecil cashed in a Series EE savings bond with a redemption value of $14,000 and an original cost of $9,800. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer:
- a) Cecil plans to spend all of the proceeds to pay his son’s tuition at State University. Cecil’s son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $63,100.
- b) Assume the same facts in part (a), except Cecil plans to spend $4,200 of the proceeds to pay his son’s tuition at State University, and Cecil estimates his modified adjusted gross income at $60,600.
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MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
Ch. 5 - Based on the definition of gross income in 61 and...Ch. 5 - Based on the definition of gross income in 61,...Ch. 5 - Describe the concept of realization for tax...Ch. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Compare how the return of capital principle...Ch. 5 - This year Jorge received a refund of property...Ch. 5 - Describe in general how the cash method of...
Ch. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Contrast the constructive receipt doctrine with...Ch. 5 - Dewey is a lawyer who uses the cash method of...Ch. 5 - Clyde and Bonnie were married this year. Clyde has...Ch. 5 - Distinguish earned income from unearned income,...Ch. 5 - Prob. 17DQCh. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - George purchased a life annuity to provide him...Ch. 5 - Prob. 21DQCh. 5 - Prob. 22DQCh. 5 - Clem and Ida have been married for several years,...Ch. 5 - Larry Bounds has won the Gold Bat Award for...Ch. 5 - Prob. 25DQCh. 5 - Prob. 26DQCh. 5 - Prob. 27DQCh. 5 - Explain why an insolvent taxpayer is allowed to...Ch. 5 - Prob. 29DQCh. 5 - Prob. 30DQCh. 5 - Prob. 31DQCh. 5 - Prob. 32DQCh. 5 - Explain how state and local governments benefit...Ch. 5 - Prob. 34DQCh. 5 - Prob. 35DQCh. 5 - Prob. 36DQCh. 5 - Prob. 37DQCh. 5 - Tom was just hired by Acme Corporation and has...Ch. 5 - For the following independent cases, determine...Ch. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - Prob. 42PCh. 5 - Prob. 43PCh. 5 - Prob. 44PCh. 5 - Last year Acme paid Ralph 15,000 to install a new...Ch. 5 - Prob. 46PCh. 5 - L. A. and Paula file as married taxpayers. In...Ch. 5 - Clyde is a cash-method taxpayer who reports on a...Ch. 5 - Identify the amount, if any, that these...Ch. 5 - Ralph owns a building that he is trying to lease....Ch. 5 - Anne purchased an annuity from an insurance...Ch. 5 - Larry purchased an annuity from an insurance...Ch. 5 - Prob. 53PCh. 5 - Lanny and Shirley divorced in 2018 and do not live...Ch. 5 - Prob. 55PCh. 5 - Grady received 8,200 of Social Security benefits...Ch. 5 - Prob. 57PCh. 5 - Nikki works for the Shine Company, a retailer of...Ch. 5 - Prob. 59PCh. 5 - Prob. 60PCh. 5 - Grady is a 45-year-old employee with AMUCK Garbage...Ch. 5 - Prob. 62PCh. 5 - Prob. 63PCh. 5 - Cecil cashed in a Series EE savings bond with a...Ch. 5 - Prob. 65PCh. 5 - Prob. 66PCh. 5 - Terry was ill for three months and missed work...Ch. 5 - Prob. 68PCh. 5 - Prob. 69PCh. 5 - This year, Janelle received 200,000 in life...Ch. 5 - Prob. 71PCh. 5 - Prob. 72PCh. 5 - Charlie was hired by Ajax this year as a corporate...Ch. 5 - Irene is disabled and receives payments from a...Ch. 5 - Ken is 63 years old and unmarried. He retired at...Ch. 5 - Prob. 76CPCh. 5 - Diana and Ryan Workman were married on January 1...
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- Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2019 gross income: a. On September 30, 2019, she cashed in Series EE bonds for 10,000. She purchased the bonds in 2009 for 7,090. The yield to maturity on the bonds was 3.5%. b. On July 1, 2018, she purchased a CD for 10,000. The CD matures on June 30, 2020, and will pay 10,816, thus yielding a 4% annual return. c. On July 1, 2019, she purchased a CD for 10,000. The maturity date on the CD was June 30, 2020, when Marlene would receive 10,300.arrow_forwardEllie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays 32,000 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of 500,000. As a result, how much gross income does Jason report?arrow_forward
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