CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 4, Problem 84IP
Calculate Carmin’s adjusted gross income on her 2019 tax return. Then do one or both of the following, according to your professor’s instructions:
- a. Include a brief explanation of how you determined each item that affected adjusted gross income and any items you excluded from gross income. Your solution to the problem should contain a list of each item included in adjusted gross income and its amount, with the explanations attached.
- b. Write a letter to Carmin explaining how you determined each item that affected adjusted gross income and any items you excluded from gross income. You should include a list of each item included in adjusted gross income and its amount.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Use the following information to complete Johnelle and Latoya Henry's 2018 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.
You may need the following forms to complete the project: Form 1040 and Schedule A. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms.
Facts:
Page C-4
Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mother's company, Long-term Investments, Inc., a full-service wealth-planning firm. They provide the following information:
Page C-3
They both want to contribute to the presidential election campaign.
They live at 9876 Old Waverly, Charleston, South Carolina.
Johnelle's birthday is 7/17/1965 and his Social Security number is 555-12-6789.
Latoya's birthday is 9/11/1967 and her Social Security number is 987-65-4321.
Johnelle or Latoya do not have any…
Required: Discuss the following, including showing workings where appropriate (citing authority):
Sonia's deductions regarding the laptop for the current 2023-24 tax year; and
Tania's deduction for the lounge for the current 2023-24 tax year
For both Sonia and Tania, where there is a choice of methods in calculating the deductions, use the method that will give the highest deductions for the tax year.
Sonia is an employee accountant who buys a laptop for $1000 on 1 March 2024. She uses it 70% for work purposes, 10% for playing games and 20% for her studies (she is currently studying for her CPA qualifications). A month after owning this laptop Sonia accidentally dropped it and cracked its screen. Subsequently, on 1 April 2024 she pays $500 to have the screen replaced with a new screen that is of much higher resolution than the original one of the laptop. The effective life of the laptop is 3 years.
Sonia’s friend Tania runs a small business (as a sole trader) with an aggregated…
Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $30 million and taxable income
of $38 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between
accounting income and taxable income is estimated product warranty costs. Assume that expected payments and
scheduled tax rates (based on recently enacted tax legislation) are as follows:
2022 $million
25%
2023
25%
million
2
2024
25%
million
2025
20%
million
Required:
1. Determine the amounts necessary to record Allmond's income taxes for 2021 and prepare the appropriate journal
entry.
2. What is Allmond's 2021 net income?
Complete this question by entering your answers in the tabs below.
Required Required Required
1 GJ
1
2
Determine the amounts necessary to record Allmond's income taxes for 2021. (Enter your
answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).
Enter all amounts as positive values.)
Show lessA
($ in
millions)
Tax…
Chapter 4 Solutions
CONCEPTS IN FED.TAX.,2020-W/ACCESS
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - LO2 Herman inherits stock with a fair market value...Ch. 4 - LO2 Fatima inherits a rental property with a fair...Ch. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Tia is married and is employed by Carrera Auto...Ch. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65IIPCh. 4 - Prob. 66IIPCh. 4 - Prob. 67IIPCh. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - Prob. 71IIPCh. 4 - Prob. 72IIPCh. 4 - Prob. 73IIPCh. 4 - Prob. 74IIPCh. 4 - Prob. 75IIPCh. 4 - Prob. 76IIPCh. 4 - Prob. 77TACh. 4 - Prob. 80TACh. 4 - Reggie receives a 2-year scholarship to Big...Ch. 4 - Prob. 83IPCh. 4 - Calculate Carmins adjusted gross income on her...Ch. 4 - Prob. 85DCCh. 4 - Marlo and Merlins son, Alex, needs 20,000 to start...Ch. 4 - Prob. 87TPCCh. 4 - Prob. 88TPCCh. 4 - Prob. 89EDC
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
- Required: Use the following information to complete Rhonda Hill's federal income tax return. If any information is missing, use reasonable assumption to fill in the gaps. Prepare this return for the year ending December 31, 2021 You may use any tax software program to complete the return, or you can do them manually by downloading fillable forms from the IRS website (www.irs.gov). The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter & Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in her home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel's support. Rhonda also provided the following information. Rhonda does not want to…arrow_forwardPedro is about to prepare and file his annual income tax return for the year ending December 21, 2020. Pedro is an emloyed engineering manager and he practice his profession and as a consultant. What BIR Form will be used?arrow_forwardPedro is about to prepare and file his annual income tax return for the year ending December 21, 2020. Pedro is an emloyed principal and he practice his profession and as a consultant. What BIR Form will be used?arrow_forward
- Using the search terms, “What do I need to know before I file my taxes” or “Tax changes to know before filing my taxes”, share your findings with your classmates. In your response, summarize your findings and include the following: Search term(s) used. Note one thing you found interesting or learned about for the first time involving Individual Taxes — Income, Exclusions, and Filing Status from your research. Include a link to the reference used.arrow_forward19. Miss Barakah is the owner of Mini Market Barakah. She has prepared financial statements for the year ending 31 December 2022. Why does she need to prepare financial statements? A Ensure that the investment was used optimally B Attracting new investors to invest C Determine the amount of taxable income. D Allow bonus claims and salary increments to be made 20. Information below relates to Mr. Azrex who needs a financial statement. I need a financial statement to make an assessment of whether to grant or renew a credit facility. Who is Mr. Azrex? A Competitor B Investor C Owner D Supplier 21. Adrian Sdn. Bhd. supplies shirts to boutiques across the country. This company incurs fixed costs amounting to RM300,000. The selling price of a shirt is RM180 and the variable cost of a shirt is RM95. How many shirts should be sold to ensure that the company does not incur losses? A 1,091 B 1,667 C 3,158 D 3,530arrow_forwarda. Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding: Feedback b. Use the wage bracket method to determine the amount of Sophie's withholding for the same period. Feedback c. Use the percentage method assuming Sophie completed a post-2019 Form W-4 and checked only the single box in Step 1(c). Feedback d. Use the wage bracket method using the same assumptions in part c of this question. %24arrow_forward
- please answer within 30 minutes...arrow_forwardDetermine all items that will be included and excluded from gross income on Form 1040 based on the TCJA of 2018. List all included and excluded items in column A. In column B, explain why the item is either included or excluded. Form 1040, Schedule C, Schedule D, Schedule E, Form 8949 Jenny Walters is a marketing assistant and earned $38,000 in 2018. She is 42 years old and has been divorced for five years. Jenny will claim head of household for 2018. She has a daughter, Julia, who is 20 years old. Julia is a full-time student. Here are some more tax facts: Jenny's SSN is 123-34-4567 and Julia's is 654-32-1234. Jenny's address is 100 N. Main St., Atlanta, GA 30301. Jenny receives $1,200 per month in alimony from her ex-husband. Jenny owns a rental property with the following financial data: Rental Revenue - $50,000 Expenses: Insurance - $5,000 Repairs - $10,500 Depreciation - $4,000 Jenny has interest income from corporate bonds of $2,200 and interest from municipal bonds…arrow_forwardKennedy had a very busy 2022 as she graduated with a master in public health in May and began work in July. She has asked you for help with her 2022 tax return. For each item, indicate whether: (i) the item would be recognized in gross income this year, (ii) the item would be excluded or deferred from gross income this year, or (ii) more information is needed. Kennedy sold a condo for $150,000 which she purchased for $130,000 five years ago. She did not live in the condo at any point. Multiple Choice Included. More information is needed Excluded or Deferredarrow_forward
- Compute Mary’s income or deductions for 2020 using (1) the cash basis and (2) the accrual basis for each of the following. In May 2020, Mary paid a license fee of $1,200 for the period June 1, 2020, through May 31, 2021. In December 2020, Mary collected $10,000 for January 2021 rents. In January 2020, Mary collected $2,000 for December 2020 rents. In June 2020, Mary paid $7,200 for an office equipment service contract for the period July 1, 2020, through December 31, 2021. In June 2020, Mary purchased office furniture for $273,000. She paid $131,000 in cash and gave a $142,000 interest-bearing note for the balance. The office furniture has a MACRS cost recovery period of seven years. Mary did not make the § 179 election and elected not to take additional first-year depreciation.arrow_forwardNorman Foster filed his 2020 tax return as was required on June 15, 2021. His Notice of Assessment dated August 28, 2021, indicated that his return was accepted as filed. On March 15, 2022, he receives a Notice of Reassessment dated March 8, 2022 indicating that he owes additional taxes, as well as interest on unpaid amounts. What is the latest date for filing a notice of objection for this reassessment? Explain your answer. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). A v BIUS Paragraph Arial 14px Q E E E E x X2 T Te - 田 田田国 Ť (i} 田 田 田arrow_forwardMary is a self-employed attorney. a. Assuming that Mary earns $27,500 from her practice, calculate the total amount of her self-employment tax liability for 2020. b. Assuming that Mary earns $163,000 from her practice, calculate the total amount of her self-employment tax liability for 2020. In your calculations, round all calculations to the nearest two decimals. These answers do not need to be rounded to the nearest whole dollar.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
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