Ask Question, Ask an Expert


Ask Accounting Basics Expert

problem 1: Justin and Juna, ages 44 and 38, are married and file a joint return.  In addition to have three dependent children (Jennifer, Joyce and Jacqueline), Justin and Juna have adjusted gross income (AGI) of $85,000 and itemized deductions of $20,000. Find out their taxable income for 2013?

a. $85,000
b. $65,000
c. $53,300
d. $45,500

problem 2: In year 2013, Alan, age 16, will have $300 of interest from a certificate of deposit and $5,000 from working as a waiter. Suppose Alan is claimed by his parents as a dependent. What is Alan’s standard deduction for 2013?

a. $300
b. $1,000
c. $5,350
d. $6,100

problem 3: What is Carlita’s taxable income for 2013? Suppose she is single and claimed two dependent children, Chase and Cassandra. Suppose further that Carlita’s AGI is $50,000 and that her itemized deductions are $10,000.

a. $50,000
b. $40,000
c. $32,200
d. $28,300

problem 4: What is Daenne’s Taxable Income for 2013? Suppose she is 45 years old and is single and has no dependents. Suppose further that Daenne’s AGI is $60,000 and that she made a charitable contribution of $1,000 (that would be her only itemized deduction).

a. $60,000
b. $59,000
c. $55,100
d. $50,000

problem 5: A few years ago, Ami and Alicia made a partnership termed “A-SQUARED.”  Which of the given is most likely true regarding the U.S. income taxation of Ami, Alicia and A-SQUARED?

a. The A-SQUARED entity is NOT need to pay income taxes.
b. The A-SQUARED entity is NOT need to file an informational tax return.
c. Alicia and Ami are NOT need to pay taxes on their respective shares of A-SQUARED’s income unless (and until) A-SQUARED distributes its earnings to them
d. All the above.

problem 6: Which doctrine will most probable prevent Sandra from decreasing her tax liability by voluntarily assigning her income to the other taxpayer?

a. The constructive receipt doctrine
b. The fruit-of-the-tree doctrine
c. The economic benefit doctrine
d. None of above

problem 7: During the year 2013, Carlos was supported by his three wealthy CPA daughters, in the given percentages:

•    Porshia: 25.0%
•    Abena: 30.0% 
•    Ann: 9.0%

Which daughter is not able to claim Carlos as a dependent, even if a multiple support agreement is in place and the other daughters agree not to claim Carlos as a dependent?

a. Porshia
b. Abena
c. Ann
d. Each daughter would be eligible to claim Carlos as a dependent

problem 8: On January 1, 2013, Batista signed a 5 year lease to rent office space from Anthony. The lease commenced instantly on January 1, 2013. During the year 2013, Batista will pay Anthony, $12,000 for the first year’s rent, $1,000 for the last month’s rent, and $1,000 as a Security deposit. Batista and Anthony agree that the security deposit will not be returned by Anthony at the end of the lease. How much gross income must Anthony report for 2013 as a result of such items?

a. $61,000
b. $14,000
c. $13,000
d. $12,000

problem 9: What is Kevin’s taxable income for 2013? Suppose Kevin is 33 years old and is single and has no dependents. Suppose further that Kevin’s 2013 AGI is $75,000 and that he has no itemized the deductions.
a. $65,000
b. $68,900
c. $71,100
d. $75,000
problem 10: Mohammed, a single taxpayer, will have 2013 wages of $70,000 from his job at Big Company, Inc. Determine Mohammed’s AGI if he has the given (and only the given) additional items in 2013?

• Itemized deductions of $10,000
• Exemption amount of $3,900
• Alimony of $12,000 paid by Mohammed (to his previous spouse, Pharlande)
• Business income of $6,000 from Mohammed’s sole proprietorship

Avoid any deduction that might relate to self-employment taxes.

a. $76,000
b. $70,000
c. $64,000
d. $50,100

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M95259

Have any Question? 

Related Questions in Accounting Basics

Question 1jian rarimbal and dan are considering setting up

Question 1: Jian, Rarimbal and Dan are considering setting up a company providing 2 hour hot air balloon trips for groups of 10 tourists at a time. The trips will include some food and drink for the tourists. They have d ...

1 a title page replace this page with your title page

1. A title page (replace this page with your title page), proper grammar and a reference list. 2. A 2-3 page summary of the article - here's a suggested method for writing the summary: a. Read the article and make sure y ...

Question 1 which of the following results in an increase in

Question 1. Which of the following results in an increase in the equity in investee income account when applying the equity method? Unrealized gain on intercompany inventory transfers for the prior year Amortizations of ...

Auditing and professional practice assignmentcase study 1

Auditing and Professional Practice Assignment Case Study 1: Consider each of the following independent situations: (a) City Ltd, a property developer, has several major projects in progress in Brisbane's central business ...

Problem 1bart exchanges some real estate basis of 80000 and

Problem 1 Bart exchanges some real estate (basis of $800,00 and fair market value of $1 million) for other real estate owned by Roland (basis of $1.2 million and fair market value of $900,00) and $100,000 in cash. The re ...

Culturally diverse individuals are effective workerssuppose

Culturally Diverse Individuals Are Effective Workers Suppose you work as a human resource (HR) executive at Total Solutions, Inc., a culturally and geographically diverse organization. A recent government study on human ...

Flint hills companys most recent financial statements

Flint Hills Company's most recent financial statements showed dismal performance. There was a net loss of $10,000 and the Statement of Cash Flows showed a net cash decrease in all categories. The company president called ...

Accounting questionwhat are the advantages to the

Accounting Question: What are the advantages to the shareholders in a target entity that is acquired via taxable stock acquisition vs. a taxable acquisition of net assets? What are the advantages to the acquiring entity? ...

Accounting individual assignmentpart 1 - royal oak taxation

ACCOUNTING INDIVIDUAL ASSIGNMENT PART 1 - Royal Oak Taxation Advisory Service has the following transactions for the month of December 2016: Dec. 1 Commenced business by depositing $50 000 in a bank account in the name o ...

Company annual report study -choose any company and make a

COMPANY ANNUAL REPORT STUDY - Choose any company and make a report: Introduction (about 100 words) Conceptual framework (300 words) Ethics (not more than 150 words) Corporate governance (not more than 150 words) Legitima ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro