Chapter 15 - Study Questions - CA State
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DeVry University, Keller Graduate School of Management *
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ACCT431
Subject
Law
Date
Jan 9, 2024
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Pages
1
Uploaded by CountGalaxy14373
Chapter 15: Study Questions 1. Felipe is a nonresident and works in California as an independent contractor. Who is responsible for withholding California state taxes from Felipe’s pay? a) A division of the FTB board The entity making payments to the sel b) Felipe; because he is self-employed individual is known as the withholding c) The entity making the payment to the contractor d) An independent firm hired by the state Gregory had a net operating loss (NOL) with his business in 2008 and claimed a carryover deduction on his federal return. Due to the four-year NOL carryover deduction suspension for taxable years 2008-2011, which of the following statements about Gregory’s NOL in California is correct? a) He may carry over the NOL for a 10-year period plus a 3-year carryover period extension. b) He may carry over the NOL for a 20-year period plus a 3-year carryover period extension. c) In general, California law conformed to the Internal Revenue Code regarding the suspension. d) He was allowed to continue to compute and carryover an NOL during the suspension period. Esther needs help with her growing business but is uncertain where to find the guidelines that determine if a person is an employee or a contractor in California. Common Law Tests for Employment are implemented by: a) The Franchise Tax Board Employment Development Department (EDD) create b) The State Supreme Court implements the Common Law Tests for Employmen' c) The federal government d) The Employment Development Department Derek owns a farming business and he periodically donates agricultural products to nonprofit charitable organizations. During the tax year, he paid $5,500 in eligible transportation costs associated with transporting the donated products. He deducted the total costs on his federal return. He is claiming the Donated Agricultural Products Transportation Credit on his California tax return. How will he adjust for the federal business deduction on his California return? a) He will enter $2,750 on Schedule CA (540), Part |, Section B, line 3, column C. b) He will enter $2,750 on Schedule CA (540), Part |, Section B, line 6, column C. c) He will enter $5,500 on Schedule CA (540), Part |, Section B, line 3, column C. d) He will enter $5,500 on Schedule CA (540), Part |, Section B, line 6, column C. Fiona is thinking about changing jobs and was told she would be considered a statutory employee at the new job. Which of the following jobs could classify Fiona as a statutory employee? An agent-driver engage a) A homeworker inventing a product to sell to a business delivering dry-cleaning b) A commission-driver distributing milk for a dairy business principal is a statutory € c) An agent-driver working for a dry-cleaning business d) A local salesperson working part-time taking retail orders on behalf of her employer
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