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During 1993 Kay received interest income as follows:
During 1993 Kay received interest income as follows: On U.S. Treasury certificates $4,000 On refund of 1991 federal income tax 500 The total amount of interest subject to tax in Kay's 1993 tax return is:A . $4,500 B. $4,000 C. $500 D. $0View AnswerAnswer: A Explanation: Choice "a" is correct....
What amount of interest was deductible on Krest's 1997 income tax return?
On December 1, 1997, Krest, a self-employed cash basis taxpayer, borrowed $200,000 to use in her business. The loan was to be repaid on November 30, 1998. Krest paid the entire interest amount of $24,000 on December 1, 1997. What amount of interest was deductible on Krest's 1997 income tax...
Which payment(s) is(are) included in a recipient's gross income?
Which payment(s) is(are) included in a recipient's gross income? I. Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a requirement toward obtaining the degree. II. A grant to a Ph.D. candidate for his participation in a university-sponsored research project for the benefit...
What is the total amount that must be included in gross income on Adler's 2001 income tax return?
During 2001, Adler had the following cash receipts: What is the total amount that must be included in gross income on Adler's 2001 income tax return?A . $18,000 B. $18,400 C. $19,500 D. $19,900View AnswerAnswer: C Explanation: Choice "c" is correct. The wages of $18,000 and unemployment compensation are both...
Which of the following would be included in a taxpayer's gross income?
Darr, an employee of Sorce C corporation, is not a shareholder. Which of the following would be included in a taxpayer's gross income?A . Employer-provided medical insurance coverage under a health plan. B. A $10,000 gift from the taxpayer's grandparents. C. The fair market value of land that the taxpayer...
Which of the following is (are) true?
In a tax year where the taxpayer pays qualified education expenses, interest income on the redemption of qualified U.S. Series EE Bonds may be excluded from gross income. The exclusion is subject to a modified gross income limitation and a limit of aggregate bond proceeds in excess of qualified higher...
What amount should Baum report as 1999 net earnings from self-employment?
Baum, an unmarried optometrist and sole proprietor of Optics, buys and maintains a supply of eyeglasses and frames to sell in the ordinary course of business. In 1999, Optics had $350,000 in gross business receipts and its year-end inventory was not subject to the uniform capitalization rules. Baum's 1999 adjusted...
In evaluating the hierarchy of authority in tax law, which of the following carries the greatest authoritative value for tax planning of transactions?
In evaluating the hierarchy of authority in tax law, which of the following carries the greatest authoritative value for tax planning of transactions?A . Internal Revenue Code. B. IRS regulations. C. Tax court decisions. D. IRS agents' reports.View AnswerAnswer: A Explanation: Note: This question is addressed in your Appendix D...
What is Parker's most advantageous filing status?
Parker, whose spouse died during the preceding year, has not remarried. Parker maintains a home for a dependent child. What is Parker's most advantageous filing status?A . Single. B. Head of household. C. Married filing separately. D. Qualifying widow(er) with dependent child.View AnswerAnswer: D Explanation: Choice "d" is correct. A...
What amount of these payments should be reported as income in Mary's 1992 income tax return?
John and Mary were divorced in 1991. The divorce decree provides that John pay alimony of $10,000 per year, to be reduced by 20% on their child's 18th birthday. During 1992, John paid $7,000 directly to Mary and $3,000 to Spring College for Mary's tuition. What amount of these payments...
