Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows:(Click the icon to view the premiums attributable to Ursula.)During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the lifeinsurance policy.Read the requirements.CRequirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.)The premiums attributable to Ursula that USA Corporation can deduct isRequirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.)The amount that Ursula must include in income relative to the premiums paid is$4,100

Income Taxable liability refer to any amount due including interest , penalties and addition to tax…

Answered: Ursula is employed by USA Corporation.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided. a. Donald's employer paid Darlene an amount equal to Donald's three months' salary ($15,000), which is what the employer does for all widows and widowers of deceased employees. b. Donald had $6,800 in accrued salary that was paid to Darlene. c. Donald's employer had provided Donald with group term life insurance of $255,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $13,200 had been included in Donald's gross income under § 79. d. Donald had purchased a life insurance policy (premiums totaled $162,000) that paid $427,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $31,000 each year for a 22-year period. She…
During the 2020 tax year, Frank (age 65) and Betty (age 63) paid the following medical expenses: Medical insurance $425 Prescription medicines and drugs 364 Hospital bills 2,424 Doctor bills 725 Prescription Eyeglasses for Frank's dependent mother 75 Doctor bills for Betty's sister, who is claimed as a dependent by Frank and Betty 220 In addition, during 2020, they drove 700 miles for medical transportation in their personal automobile. Their insurance company reimbursed Frank and Betty $1,420 during the year for the medical expenses. If their adjusted gross income for the year is $25,400, calculate their medical expense deduction. Use the Medical and Dental Expenses section of Schedule A reproduced below. Enter all amounts as positive numbers. If required, round your answers to the nearest dollar. Caution. Do not include expenses reimbursed or paid by others. MedicalandDentalExpenses 1 Medical and dental expenses (see instructions)…
Edna spent the last 80 days of 2021 in a nursing home. The cost of the services provided to her was $24,000 ($300 per day). Medicare paid $14,000 toward the cost of her stay. Edna also received $14,000 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is $400. If the amount is zero, enter 0. What is the effect on Edna's gross income? The amount of her exclusion is $ and the amount included in her gross income is $
Ross and Rachel are married and have two children. They are covered by a comprehensive medical and major medical policy with a $200 embedded deductible per person, an 80/20 coinsurance provision, and an annual out-of-pocket family limit of $3,000. Ross dislocated his shoulder in November and needed surgery to fix the injury, which cost $35,000. Ross, Rachel, and each of the children had an annual physical exam earlier in January, which cost $250 each. Aside from these expenses, there were no other health care costs incurred by the family this year. How much will Ross have to pay out of pocket to cover the costs of his surgery? a. $0 b. $2,160 c. $2,750
Gilbert is an elementary school teacher at a public school.Gilbert and Tara are married and choose to file Married Filing Jointly on their 2021 tax return. • Gilbert worked a total of 1,280 hours in 2021. During the school year, he spent $500 on unreimbursed classroom expenses. • Tara retired in 2018 and began receiving her pension on October 1st of that year.She explains that this is a joint and survivor annuity. She has already recovered $1,013 of the cost of the plan. • Gilbert settled with his credit card company on an outstanding bill and brought the Form 1099-C to the site.They aren’t sure how it will impact their tax return for tax year 2021.The Washingtons determined that they were solvent as of the date of the canceled debt. • Tara won $3,000 gambling at a casino and had additional lottery winnings of $150. Tara has documented casino losses of $1,500. • Their son, Chandler, is in his second year of college pursuing a bachelor’s degree in Logistics at a qualified educational…
At the time of Mateo's death, he was involved in the transactions described below: Mateo was a participant in his employer's contributory qualified pension plan. The plan balance of $2,000,000 is paid to Olivia, Mateo's daughter and beneficiary. The distribution consists of the following: Employer contributions $900,000 Mateo's after-tax contributions 600,000 Income earned and accumulated by the plan 500,000 Mateo was covered by his employer's group term life insurance plan for employees. The $200,000 proceeds are paid to Olivia, as designated beneficiary. a. What is the total amount (of the items above) that is included in Mateo's gross estate? b. What is the total amount (of the items above) that is included in Mateo's gross estate if Olivia were Mateo's surviving spouse rather than his daughter? The amount included would be _____ and a marital deduction of _____ would be allowed.
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year (2021). She correctly calculated her AGI. However, she wasn't sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income. a. Shauna paid $4,688 for medical expenses for care related to a broken ankle. Also, Shauna's boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle. b. Shauna paid a total of $3,420 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and paid $3,020 for the surgery (she received no insurance reimbursement). She also incurred $458 of other medical…
Thomas is age 40 and was widowed in 2019. He has a daughter, Christina, age 6. • Thomas provided the entire cost of maintaining the household and over half of the support for Christina. In order to work, he pays childcare expenses to Downtown Daycare. • Thomas purchased health insurance for himself and his daughter through the Marketplace. He received a Form 1095-A.. Thomas and Christina are U.S. citizens and lived in the United States all year in 2022. 30. What is Thomas's most advantageous filing status? a. Single b. Married Filing Separately c. Head of Household d. Qualifying Surviving Spouse (QSS) 31. Thomas's adjusted gross income on his Form 1040 is $ 32. Thomas can claim the following credits on his tax return. a. Child Tax Credit b. Child and Dependent Care Credit c. Premium Tax Credit d. All of the above 33. Thomas's Retirement Savings Contributions Credit on Form 8880 is $ 34. The total amount of Thomas's advanced payment of premium tax credit for 2022 is $_ 35. Thomas's…
Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $52,500 to her employer's qualified pension fund, all of which was taxable when earned. She elects to receive her retirement benefits as an annuity of $5,250 per month for the remainder of her life. Click here to access Exhibit 4.1 and Exhibit 4.2. a. Assume that Pam retired in June 2022 and collected six annuity payments that year. What is her gross income from the annuity payments in the first year? b. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year? c. Assume that Pam dies after collecting 160 payments. She collected eight payments in the year of her death. What are Pam's gross income and deductions, if any, from the annuity contract in the year of her death? Income from the annuity payments: Loss deduction:
Elisa is covered by a $200,000 group term life insurance policy of which her daughter is the sole beneficiary. Elisa's employer pays the entire premium for the policy, for which the uniform annual premium is $0.75 per $1,000 per month of coverage. How much, if any, of the cost of the group term life insurance is excluded from Elisa's gross income on an annual basis? $0 $450 $1,350 $1,800
Carol Wheeler, age 56, is single. Carol earned wages of $48,000 and was enrolled the entire year in a high deductiblehealth plan (HDHP) with self-only coverage. During the year, Carol contributed $3,000 to her Health Savings Account (HSA) and hercousin also contributed $1,000 to Carol’s HSA account. Carol’s Form W-2 shows $600 in Box 12 with code W. She has Form 5498-SA showing$4,600 in Box 2. Carol took a distribution from her HSA to pay her unreimbursed expenses: 2 visits to a physical therapist due to a car accident $300 unreimbursed doctor bills for $700 prescription medicine $400 replacement of a crown $1,500 over the counter sinus medication $80 10 Zumba classes for $125 Carol is a U.S. citizen with a valid Social Security number. 8. The over the counter sinus medication is a qualified medical expense for HSApurposes. True False
Reba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence: Room at Lakeside Meals for Lawrence at Lakeside Doctor and nurse fees at Lakeside Cable TV service for Lawrence's room at Lakeside Total $20,700 4,140 3,105 414 $28,359 Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS