Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Textbook Question
Chapter 2, Problem 1P
Indicate whether each of the items listed below would be included (I) in or excluded (E) from gross income for the 2019 tax year.
______ a. Welfare payments
______ b. Commissions
______ c. Hobby income
______d. Scholarships for room and board
______ e. $ 300 set of golf clubs, an employee award for length of service
______ f. Severance pay
______ g. Ordinary dividend of $ 50
______ h. Accident insurance proceeds received for personal bodily injury
______ i. Inheritances
______ j. Gifts
______ k. Tips and gratuities
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INSTRUCTIONS
Compute for the Income Tax Due and Payable for taxable year ended December 31, 2020
assuming that the taxpayer will use the Optional Deductions. Reference shall be Republic Act
No. 10963 or the Train Law.
Sources of Income:
1. Compensation income from employment
P
600,000
2. Income as Part-Time Instructor
100,000
184,000
3. 13th and 14trh Month Pay
4. Income from Professional Practice
500,000
5. Income from Business
6. Income from Cards and Mahjong Gambling
7. Income from Drug Pushing
8. Prizes and winnings from raffles
9. Interest income from bank deposits
10. Income from commissions as unlicensed real estate agent
11. Income from family farm
12. Income from family scrap items
13. Family gifts
1,000,000
180,000
500,000
400,000
100,000
200,000
400,000
100,000
100,000
14. Loan Proceeds
600,000
15. Money found on the street
100,000
Which one of the following amounts represents the maximum amount that you may deduct for
moving expenses on your 2020 personal income tax return?
A) $ 8,800.
B) $ 9,700.
C) $10,200.
D) $11,250.
A taxpayer needs help identifying and understanding their Adjusted Gross Income (AGI) for the tax year of 2022. Filing
status: Single Their total income consists of the following: Wages $20,000 Capital Gains $5,000 Pension Income $5,000
The taxpayer paid alimony in the amount of $5,000 for a divorce decree dated 2017, $5,500 of student loan interest, and
$3,000 for child care. Is this the AGI?
Chapter 2 Solutions
Income Tax Fundamentals 2020
Ch. 2 - The definition of gross income in the tax law is:...Ch. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Which of the following items would be included in...Ch. 2 - Malin is a married taxpayer and has three...Ch. 2 - George works at the Springfield Nuclear Plant as a...Ch. 2 - Prob. 9MCQCh. 2 - Which of the following will result in the...
Ch. 2 - Prob. 11MCQCh. 2 - Prob. 12MCQCh. 2 - A 64 -year-old taxpayer retires this year and...Ch. 2 - Prob. 14MCQCh. 2 - Prob. 15MCQCh. 2 - Harry's wife Lila passes away in January of the...Ch. 2 - Nomi is in the highest individual tax bracket and...Ch. 2 - Prob. 18MCQCh. 2 - Prob. 19MCQCh. 2 - Prob. 20MCQCh. 2 - Kelly receives a $40,000 scholarship to Ivy...Ch. 2 - Hillary gets divorced in 2016 and is required to...Ch. 2 - Prob. 23MCQCh. 2 - Prob. 24MCQCh. 2 - Prob. 25MCQCh. 2 - Prob. 26MCQCh. 2 - Prob. 27MCQCh. 2 - Prob. 28MCQCh. 2 - During 2019, Carl (a single taxpayer) has a salary...Ch. 2 - Prob. 30MCQCh. 2 - Alicia loses her job part way through 2019. Her...Ch. 2 - Prob. 32MCQCh. 2 - Prob. 33MCQCh. 2 - Dana and Larry are married and live in Texas. Dana...Ch. 2 - Which of the following conditions need not be...Ch. 2 - Indicate whether each of the items listed below...Ch. 2 - Jane is a roofing contractor. Jane's friend needed...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Linda and Richard are married and file a joint...Ch. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Greg died on July 1,2019 , and left Lea, his wife,...Ch. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - How are qualified dividends taxed in 2019? Please...Ch. 2 - Describe the methods that an individual taxpayer...Ch. 2 - Prob. 20PCh. 2 - Vandell is a taxpayer in the 25 percent tax...Ch. 2 - Karen is a wealthy retired investment advisor who...Ch. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Answer the following questions: Under a 2017...Ch. 2 - Arlen is required by his 2019 divorce agreement to...Ch. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Lydia, a married individual, was unemployed for a...Ch. 2 - During the 2019 tax year, Brian, a single...Ch. 2 - Prob. 34P
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