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- John invests office equipment with a fair market value of $63,000, manufacturing equipment with a fair market value of $76,000, and cash of $31,000. He owes $28,000, represented by a note on the manufacturing equipment. The amount of John's capital would be a. $170,000 b. $142,000. c. $31,000. d. None of these choices are correct.Provide Correct answerChapter 1 TRP 1-1 Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Alex Montgomery is single and lives at 3344 Bayview Drive, Richmond Hill, GA 31324. His SSN is 412-34-5670. He recently graduated from the Savannah College of Art and Design and works as a video game developer. His Form W-2 contained the following information. Wages (box 1) = Federal W/H (box 2) = Social security wages (box 3) = Social security W/H (box 4) = Medicare wages (box 5) = Medicare W/H (box 6) - Required: Prepare a Form 1040 for Alex. Use the appropriate Tax Tables. Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. $ 72,288.22…
- Having trouble with B and CIf you were to become an executor of my estate, how would you value my prized Pete Rose rookie card in mint condition? Would you sell it? Would you give it to my heirs?Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 31,800 89,500 112,500. 10,700 278,500 $ 523,000 Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $ 129,900 98,500 163,500 131,100 $ 523,000 Current Year $ 411,225 209,550 1 Year Ago $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 4 12,100 9,525 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 673,500 2 Years Ago 642,400 $ 31,100 $ 1.90 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $51,250 83,500 163,500 79,250 $ 377,500 1 Year Ago $ 345,500…
- X sold his dog to Y on 01 May 2022 with the stipulation that X will deliver the same on 20 May 2022. It turns out that the dog is pregnant and will be having her labour on 19 May 2022, who owns the puppies? a. Y because the contract was already perfected on 01 May 2022 b. X because the dog already gave birth before the delivery c. Both of the parties d. None of the partiesSolve both questionsMa1. Dan Daytona has created a revocable contingent trust to handle his financial affairs when and if he becomes incompetent. He has named his brother as trustee and has given his brother a durable springing power of attorney to use in funding the trust. Which of the following statements regarding this trust arrangement are correct? Dan has given his brother a general power of appointment. Dan’s brother can use the durable power of attorney at any time. Dan will not owe a gift tax when the trust is funded. Dan’s brother can use the durable power of attorney to place any remaining assets in the trust at Dan’s death to avoid probate. III only I and III only II and IV only I, II, and IV only
- Auchiel and Ben are working in patnership as accountants. Kuria gives auchiel ksh. 100,000 for investment in some good security. Auchiel hides this to co-partner (Ben) and misappropriates the money. Kuria files a suit on the firm for the recovery of his ksh. 100,000 in your opinion, will he succeed? Give reasons.If you don't have a will when you die, the state will take steps to see that your assets are distributed as you might have wished. a) True b) FalseIs a taxpayer allowed to take the € 120 exclusive for a vacation home that was never rented? Explain please.