Question;Complete the following problems located in Taxation of Individuals;and Business Entities;Comprehensive;Problem 67 (Ch. 5);67.;Ken is;63 years old and unmarried. He retired at age 55 when he sold his business;Understock.com. Though Ken is retired, he is still very active. Ken reported;the following financial information this year. Assume Ken?s;modified adjusted gross income for purposes of the bond interest exclusion;and for determining the taxability of his Social Security benefits is $70,000;and that Ken files as a single taxpayer. Determine Ken?s 2009 gross income.;a.;Ken won $1,200 in an illegal game of poker (the game was played in;Utah, where gambling is illegal).;Ken sold 1,000 shares of stock for $32 a;share. He inherited the stock two years ago. His tax basis (or;investment) in the stock was $31 per share.Ken received $25,000 from an annuity he;purchased eight years ago. He purchased the annuity, to be paid annually;for 20 years, for $210,000.Ken received $13,000 in Social Security;benefits for the year.Ken resided in Ireland from July 1, 2008;through June 30, 2009, visiting relatives. While he was there he earned;$35,000 working in his cousin?s pub. He was paid $17,000 for his;services in 2008 and $18,000 for his services in 2009. Assume Ken elects;to use the foreign-earned income exclusion to the extent he is eligible.Ken decided to go back to school to learn;about European history. He received a $500 cash scholarship to attend.;He used $300 to pay for his books and he applied the rest toward his new;car payment.Ken?s son, Mike, instructed his employer to;make half of his final paycheck of the year payable to Ken. Ken received;the check on December 30 in the amount of $1,100.Ken received a $610 refund of the $3,600 in;state income taxes his employer withheld from his pay last year. Ken;claimed $5,500 in itemized deductions last year (the standard deduction;for a single filer was $5,450).Ken received $30,000 of interest from;corporate bonds and money market accounts.;Comprehensive;Problem 66 (Ch. 6);66.;Jeremy;and Alyssa Johnson have been married for five years and do not have any;children. Jeremy was married previously and has one child from the prior;marriage. He is self-employed and operates his own computer parts store. For;the first two months of the year, Alyssa worked for Staples, Inc., as an;employee. In March, Alyssa accepted a new job with Super Toys, Inc. (ST);where she worked for the remainder of the year. This year, the Johnsons;received $255,000 of gross income. Determine the Johnson?s AGI given the;following information;a.;Expenses associated with Jeremy?s store include $40,000 in salary (and;employment taxes) to employees, $45,000 of cost of goods sold, and $18,000 in;rent and other administrative expenses.;As a salesperson, Alyssa incurred $2,000 in;travel expenses related to her employment that were not reimbursed by;her employer.The Johnsons own a piece of investment real;estate. They paid $500 of real property taxes on the property and they;incurred $200 of expenses in travel costs to see the property and to;evaluate other similar potential investment properties.The Johnsons own a rental home. They;incurred $8,500 of expenses associated with the property.The Johnson?s home was only five miles from;the Staples store where Alyssa worked in January and February. The ST;store was 60 miles from their home, so the Johnsons decided to move to;make the commute easier for Alyssa. The Johnson?s new home was only ten;miles from the ST store. However, it was 50 miles from their former;residence. The Johnsons paid a moving company $2,000 to move their;possessions to the new location. They also drove the 50 miles to their;new residence. They stopped along the way for lunch and spent $60 eating;at Denny?s. None of the moving expenses were reimbursed by ST.Jeremy paid $4,500 for health insurance;coverage for himself. Alyssa was covered by health plans provided by her;employer, but Jeremy is not eligible for the plan until next year.Jeremy paid $2,500 in self-employment taxes.Alyssa contributed $4,000 to ST?s;employer-provided traditional 401k plan.Jeremy paid $5,000 in alimony and $3,000 in;child support from his prior marriage.Alyssa paid $3,100 of tuition and fees to;attend night classes at a local university. The Johnsons would like to;deduct as much of this expenditure as possible rather than claim a;credit.The Johnsons donated $2,000 to their;favorite charity;Comprehensive;Problem 81 (Ch. 8);81.;Joe operates;a business that locates and purchases specialized assets for clients, among;other activities. Joe uses the accrual method of accounting but he doesn?t;keep any significant inventories of the specialized assets that he sells. Joe;reported the following financial information for his business activities;during year 0. Determine the effect of each of the following transactions on;the taxable business income.;a.;Joe has signed a contract to sell gadgets to the city. The contract;provides that sales of gadgets are dependent upon a test sample of gadgets;operating successfully. In December, Joe delivers $12,000 worth of gadgets to;the city that will be tested in March. Joe purchased the gadgets especially;for this contract and paid $8,500.;Joe paid $180 for entertaining a visiting;out-of-town client. The client didn?t discuss business with Joe during;this visit, but Joe wants to maintain good relations to encourage;additional business next year.On November 1, Joe paid $600 for premiums;providing for $40,000 of ?key man? insurance on the life of Joe?s;accountant over the next 12 months.At the end of the year (year 1), Joe?s;business reports $9,000 of accounts receivable. Based upon past;experience, Joe believes that at least $2,000 of his new receivables;will be uncollectible.In December of year 0, Joe rented equipment;for a large job. The rental agency required a minimum rental of three;months ($1,000 per month), but Joe completed the job before year-end.Joe hired a new sales representative as an;employee and sent her to Dallas for a week to contact prospective;out-of-state clients. Joe ended up reimbursing his employee $300 for;airfare, $350 for lodging, $250 for meals, and $150 for entertainment.;Joe requires the employee to account for all expenditures in order to be;reimbursed.Joe uses his BMW (a personal auto) to travel;to and from his residence to his factory. However, he switches to a;business vehicle if he needs to travel after he reaches the factory.;Last month, the business vehicle broke down and he was forced to use the;BMW both to travel to and from the factory and to visit work sites. He;drove 120 miles visiting work sites and 46 miles driving to and from the;factory from his home.Joe paid a visit to his parents in Dallas;over the Christmas holidays. While he was in the city, Joe spent $50 to;attend a half-day business symposium. Joe paid $200 for airfare, $50 for;meals during the symposium, and $20 on cab fare to the symposium.;Click the Assignment Files;tab to submit your assignment.Please remember provide support for;answers whether you are researching or calculating to get answers.;Properly label all parts of a problem.
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