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1. In the current year, ABC Corporation had the fo...

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1. In the current year, ABC Corporation had the following items of income, expense, gains, and losses: Sales $500,000 Cost of Sales $270,000 Operationg Expenses $100,000 Interest on savings account $14,000 Gain on sale of AT&T stock $ 6,000 Loss on sale of IBM Stock $15,000 What is the taxable income for the year? a) 135,000 b) 141,000 c) 144,000 d) 150,000 2. Topaz Corporation had the following income and expenses during the current year: Revenues $80,000 Expenses $30,000 Gains on sale of Capital assets $ 5,000 Losses on sale of Capital assets $(25,000) What is Topaz's taxable income? a) $30,000 b) $50,000 c) $52,000 d) $20,000 3. On January 31 of this year, Jennifer pays $700 for an option to acquiare 100 shares of Lifetime Corporation common stock for $70 per share. Jennifer exercises the option on June 2. Jennifer sells the srock on April 30 of next year for $10,000. Jennifer basis for the stock immediately before the sales is: a) 0 b) $700 c) $7000 d) $7700 4) Mia is self employed as a consultant. During 2009, Mia earned $180,000 in self employment income. What is Mia's self employment tax? 5) During the current tax year, Frank Corporation generated gross income of $1,900,000 and has ordinary and necessary deductions of $1,400,000. What is the amount of Frank's corporate income tax for the year? 6) Charlie is a dependent on his parent's tax return. He received $750 during the year in dividends, which was his only income. What is his standard deduction? a) $750 b) $950 c) $1,100 d) $5,700 7) Deborah, who is single, is claimed as a dependent on her parent's tax return. She had a part time job during 2009 and earned $850 during the year, which was her only income. What is her standard deduction? a) $850 b) $950 c) $1,150 d) $5,700 8) Cheryl is claimed as a dependent on her parent's tax return. She had a part time job during 2009 and earned $4,900 during the yeaer, which was her only income. What is her standard deduction? a) $950 b) $4,900 c) $5,200 d) $5,450 9) This year, Jason sold some qualified small business stock he held for more than five years. His basis in the stock was $95,000 and he sold it for $30,000 gain. How much of Jason's gain is taxable? a) $0 b) $15,000 c) $30,000 d) $47,500 10) In September of $2009, Amanda sold shared of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for $7 months. Forty five dats after the sale she purchased other qualified small business stock for $1,100,000. How much of gain will she recognize? a) $0 b) $100,000 c) $800,000 d) $900,000

 

Paper#4646 | Written in 18-Jul-2015

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