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- Ryan is 39 years old and works as a real estate agent. Ryans marginal tax rate is 24%. Ryan has a traditional (deductible) IRA with a current balance of 80,000. The IRA consists of 60,000 of contributions that Ryan made and deducted on his tax return and 20,000 of account earnings. In the current year, Ryan receives a distribution of the entire 80,000. He contributes 60,000 to a Roth IRA and keeps the remaining 20,000. What is Ryans total income tax and penalty on the transactions? a. 0 income tax, 0 penalty b. 20,000 income tax, 8,000 penalty c. 5,000 income tax, 2,000 penalty d. 19,200 income tax, 2,000 penaltyRidge is a generous individual. During the year, she made interest-free loans to various family members when the Federal interest rate was 3%. What are the Federal tax consequences in 2018 of the following loans by Ridge? If an amount is zero, enter "0". a. On June 30, Ridge loaned $12,000 to a cousin, Jim, to buy a used truck. Jim's only source of income was his wages on various construction jobs during the year. The computed imputed interest amount for 2018 is $ However, This is because the loan was less than and does not have any investment income. b. On August 1, Ridge loaned $8,000 to a niece, Sonja. The loan was meant to enable Sonja to pay her college tuition. Sonja reported $1,200 interest income from CDs that her parents had given her. c. On September 1, Ridge loaned $25,000 to a brother, Al, to start a business. Al reported only $220 of dividends and interest for the year. The computed imputed interest amount for 2018 is $ Because this amount However, exceed $1,000, is…Rebecca has a loan with 1st Town bank for $5,000. She lost her job several months ago and defaulted on the loan. The bank forgave the $5,000 loan. Prior to the debt forgiveness, she owned $10,000 in assets. Her total liabilities before the debt forgiveness were $12,000. How much will Rebecca have to report as taxable debt forgiveness on her tax return? Group of answer choices $0. $2,500. $3,000. $5,000.
- Aaron is a 34-year-old head of household and a self-employed taxpayer. He contributed the maximum amount to his IRA account during the current year, and his net earnings from his business totaled $29,000. How much can Aaron deduct forAGI this year? a.$5,000 b.$6,000 c.$3,800 d.$3,200 e.$- 0 -During the current year, 2022, Travis takes out a $40,000 loan, using stock he owns as collateral. He uses $10,000 to purchase a car, which he uses 100% for personal use. He uses the remaining funds to purchase stocks and bonds. He pays $3,200 interest on the loan. Travis also reports the following for the year: AGI without any investment income $130,000 State income taxes paid 8,400Dividend income (qualified dividends) 10,000 Interest income 2,100 Qualified residence interest 7,800Investment expenses (exclusive of interest) 8,000 Net short-term capital gains 7,300Net long-term capital gain 8,600Travis is single. What is his net taxable income?38. Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 12 percent on her investments. When should she pay the $20,000 bill this year or next?