Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 7, Problem 10MCQ
To determine
Concept Introduction:
American Opportunity Tax Credit: American opportunity tax credit is an educational credit to help to recover the higher education for the middle-class individual. American opportunity tax credit is a credit for the students in their 4-year education.
To calculate: The lifetime learning credit
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2019 Thuy worked as the assistant manager at Burger Crown through August 2019 and received wages of $79,000. Thuy then worked at Up and Down BUrger starting in September of 2019 and received wages of $61,500.
Calculate the amount of Thuy's overpayment of Social Security taxes that she should report on her 2019 Form 1040. (round to nearest two decimals places)
$
During 2019, Jeff Smallwood worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $22,000. The state unemployment rate for Rowland is 4.6%. He then changed jobs and worked for Ford Improvement Company in Topeka, Kansas, and earned $29,500 for the rest of the year. The state unemployment rate for Ford is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by: a. Rowland Construction Company........................................ $ _______b. Ford Improvement Company.............................................. $ _______
During 2019, Jake Gore worked for two different employers. Until May, he worked for Wonderman ConstructionCompany in Kansas City, Kansas, and earned $21,500. The state unemployment rate for Wonderman is 4.6%. Hethen changed jobs and worked for Buxmont Improvement Company in Mobile, Alabama, and earned $33,100 forthe rest of the year. The state unemployment rate for Buxmont is 5.1%. Determine the unemployment taxes (FUTAand SUTA) that would be paid by:a. Wonderman Construction Company ............................... $b. Buxmont Improvement Company ................................... $
Chapter 7 Solutions
Income Tax Fundamentals 2020
Ch. 7 - Russ and Linda are married and file a joint tax...Ch. 7 - Jennifer is divorced and files a head of household...Ch. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Which of the following is not a requirement to...Ch. 7 - For purposes of determining income eligibility for...Ch. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQCh. 7 - Which of the following costs is not a qualified...Ch. 7 - Prob. 10MCQ
Ch. 7 - Prob. 11MCQCh. 7 - Prob. 12MCQCh. 7 - Joan, a single mother, has AGI of $61,500 in 2019....Ch. 7 - Prob. 14MCQCh. 7 - Prob. 15MCQCh. 7 - Prob. 16MCQCh. 7 - Prob. 17MCQCh. 7 - Prob. 18MCQCh. 7 - Prob. 19MCQCh. 7 - Prob. 20MCQCh. 7 - Virginia and Richard are married taxpayers with...Ch. 7 - Calculate the total child and other dependent...Ch. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Clarita is a single taxpayer with two dependent...Ch. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Marty and Jean are married and have 4 -year-old...Ch. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Janie graduates from high school in 2019 and...Ch. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Carl and Jenny adopt a Korean orphan. The adoption...Ch. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25P
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- During 2019, Jake Gore worked for two different employers. Until May, he worked for Wonderman Construction Company in Kansas City, Kansas, and earned 21,500. The state unemployment rate for Wonderman is 4.6%. He then changed jobs and worked for Buxmont Improvement Company in Mobile, Alabama, and earned 33,100 for the rest of the year. The state unemployment rate for Buxmont is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by: a. Wonderman Construction Company................................ _______ b. Buxmont Improvement Company.................................... _______arrow_forwardAllie started her new job in 2020. She received the following payments or benefits paid on her behalf by her employer. $84,000 in salary. $ 6,000 contribution to employer qualified pension plan for her. $ 9,250 contribution to her employer’s qualified health insurance plan for her. $ 8,400 in bonus for the year (paid in January 2021 for 2020) $7,500 Board of Director’s fee since she is a member of the company BOD. $ 800 for group term life insurance coverage of $50,000 $ 1,400 for a whole life insurance policy with a face value of $100,000 $ 2,200 for disability insurance premiums (no elections made) What is Allie’s gross income for 2020?arrow_forwardInga, an attorney, completed a job for a client in November 2019. If she bills the client immediately, she will receive her 10,000 fee before the end of the year. By delaying the billing for a month, she will not receive the 10,000 until 2020. What factors should Inga consider in deciding whether she should delay sending the bill to the client?arrow_forward
- Joan, a single mother, has AGI of $61,500 in 2019. In September 2019 , she pays $5,000 in qualified tuition for her dependent son who just started at Big University. What is Joan's American Opportunity credit for 2019? $0 $1,250 $2,125 $2,500 Some other amountarrow_forwardOn January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.arrow_forwardDuring 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_forward
- On July 20,2019, Kelli purchases office equipment at a cost of $12,000. Kelli elects out of bonus depreciation but makes the election to expense for 2019. She is selfemployed as an attorney, and, in 2019, her business has a net income of $6,000 before considering this election to expense. Kelli has no other income or expenses for the year. What is the maximum amount that Kelli may deduct for 2019 under the election to expense, assuming she elects to expense the entire $12,000 purchase? $24,000 $12,000 $6,000 $3,000 $1,000arrow_forwardChristina is deciding whether or not to enroll in a one-year academic program at the start of 2023 before she starts work at the start of 2024. The one-year program will cost $20,460 at the START of 2023. Supposing that Christina enrolls in the academic program, it will provide her with an additional end of the year income. Specifically, this additional income will be a $6,000 payment made to Christina at the END of 2024, 2025, 2026, 2027, 2028, and 2029. Calculate the internal rate of return based on the idea that it is the start of 2023 right now.arrow_forwardThuy worked as the assistant manager at Burger Crown through August 2020 and received wages of $81,000. Thuy then worked at Up and Down Burger starting in September of 2020 and received wages of $61,500. Calculate the amount of Thuy's overpayment of Social Security taxes that she should report on her 2020 Form 1040. Round your answer to two decimal places.$fill in the blank 1arrow_forward
- Vishnuarrow_forwardIf an employee is expecting to earn $185,000 in 2024 (all from the salary from her current job), what amount should she enter in line 1 or TD1 form if she doesn't like to owe at the end of the year?arrow_forward45. Mr. Gerry, hired as employee on July 1, 2019 received the following compensation for the year: Monthly Basic Salary P 20,000 13th Month pay 20,000 Other benefits 7,000 Salary from previous employer (Jan- May 2019) 180,000 Withholding tax from previous 4,167employer Withholding tax (July-Nov 2019) 6,000 The amount to be refunded to Mr. Gerry isarrow_forward
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