Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Videos
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
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Images attached
Please help with the following two questions
1) What is Ian and Isabella’s (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible.
2) What is Ian and Isabella's adjusted gross income (AGI)?
Determine from the tax table the amount of the income tax for each of the following taxpayers for 2020:
Taxpayer(s)
Filing Status
Taxable Income
Income Tax
Allen
Single
$ 30,000
$______________________
Boyd
MFS
34,545
$______________________
Caldwell
MFJ
55,784
$______________________
Dell
H of H
67,450
$______________________
Evans
Single
75,000
$______________________
How much is the gross income under accrual basis? *
A. 2019:P1,400,000; 2020: P1,200,000
B. 2019: P1,400,000; 2020: P1,720,000
C. 2019: P500,000; 2020: P720,000
D. 2019: P800,000; 2020: P920,000
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
Additional Business Textbook Solutions
Find more solutions based on key concepts
Disposal of assets. Answer the following questions. 1. A company has an inventory of 1,300 assorted parts for a...
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be...
Financial Accounting (12th Edition) (What's New in Accounting)
BE1-7 Indicate which statement you would examine to find each of the following items: income statement (IS), ba...
Financial Accounting: Tools for Business Decision Making, 8th Edition
(a) Standard costs are the expected total cost of completing a job. Is this correct? Explain, (b) A standard im...
Managerial Accounting: Tools for Business Decision Making
18. What is the calculation for return on assets (ROA)? Explain what ROA measures.
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash...
Principles of Accounting Volume 1
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amountarrow_forwardINSTRUCTIONS 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 100,000arrow_forwardDetermine from the tax table or the tax rate schedule, whichever is appropriate, the amount of the income tax for each of the following taxpayers for 2020. Please show all work and calculations where appropriate. Taxpayer(s) Filing Status Taxable Income Income Tax Macintosh Single $35,700 Hindmarsh MFS $62,000 Kinney MFJ $143,000 Rosenthal H of H $91,500 Wilk Single $21,400arrow_forward
- How much is the gross income under accrual basis? A taxpayer engaged in service business provides you with the following: Description 2019 2020 Collections from services rendered-current P600,000 P800,000 Billings for revenues earned but uncollected 500,000 200,000 Collections from uncollected billings in 2019 470,000 Collections from uncollected billings in 2020 50,000 Advance collections for services not yet rendered 300,000 200,000 2019:P1,400,000; 2020: P1,200,000 2019: P1,400,000; 2020: P1,720,000 2019: P500,000; 2020: P720,000 O 2019: P800,000; 2020: P920,000arrow_forwardAssuming Carding uses the OSD, how much is the total income tax due on his income in 2021? a. 202,000 b. 246,000 c. 265,000 d. 268,000arrow_forwardWhich 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.arrow_forward
- CAN I HAVE SOME HELP WITH THIS PRACTICE QUESITON?arrow_forwardHow do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.arrow_forwardArthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.arrow_forward
- for tax year 2023, a taxpayer has the following income items: $200,000 wages, sales of primary residence for $250,000, $40,000 alimony paid, $25,000 life insurance proceeds, $4,500 traditional ira contribution. What is the adjusted gross income for the taxpayer?arrow_forwardPlease also answer under accrual basisarrow_forwardCompute for #3 and show solution.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
How to Calculate your Income Tax? Step-by-Step Guide for Income Tax Calculation; Author: ETMONEY;https://www.youtube.com/watch?v=QdJKpSXCYmQ;License: Standard YouTube License, CC-BY
How to Calculate Federal Income Tax; Author: Edspira;https://www.youtube.com/watch?v=2LrvRqOEYk8;License: Standard Youtube License