Thursday, 5 November 2015


Click below link for Answers

ACCT 429 Week 2 Homework
1. (TCOs 1, 2, and 3) A characteristic of FUTA is that
2. (TCOs 2 and 3) Provisions in the tax law that promote energy conservation and more use of alternative (nonfossil) fuels can be justified by
3. (TCOs 1, 2, 3, and 5) For purposes of determining gross income, which of the following is true?
4. (TCOs 1, 2, 3, and 5) Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2011. Copper Company is a publicly held company that has declared a $1.00 per share dividend on September 30th every year for the last 20 years. Just as Darryl had expected, Copper Company declared a $1.00 per share dividend on September 30th, payable on October 15th, to stockholders of record as of October 10th. The daughter received the $1,000 dividend on October 18, 2011. How does this information impact who must recognize the dividend as income?
5. (TCOs 1, 2, 3, and 5) Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8% note for $100,000. The note was to be paid over a five-year period. When the balance on the note was $80,000, Jewel began having financial difficulties. To accelerate her cash inflows, Jewel agreed to accept $60,000 cash from Harold in final payment of the note principal.
6. (TCOs 4 and 5) Which of the following is incorrect?
7. (TCOs 4 and 5) Rex, a cash basis calendar year taxpayer, runs a bingo operation that is illegal under state law. During 2010, a bill designated H.R. 9 is introduced into the state legislature. If enacted, the bill would legitimize bingo games. In 2011, Rex had the following expenses:
8. (TCOs 4 and 5) During the current year, Kingbird Corporation (a calendar year C corporation) had the following income and expenses:
9. (TCOs 4 and 5) Jed is an electrician. Jed and his wife are cash basis taxpayers and file a joint return. Jed wired a new house for Alison and billed her $15,000. Alison paid Jed $10,000 and refused to pay the remainder of the bill, claiming the fee to be exorbitant. Jed took Alison to small claims court for the unpaid amount and was awarded a $2,000 judgment. Jed was never able to collect the judgment nor the remainder of the bill from Alison. What amount of loss may Jed deduct in the current year?
10. (TCOs 4 and 5) Nick, an attorney, owns a separate business (not real estate) in which he participates. He has one employee who works part time in the business. Which statement is correct?

ACCT 429 Week 4 Midterm

1. (TCOs 1 and 2) The tax law contains various provisions that encourage home ownership. What are some of these provisions? On what basis can this objective be justified? Are there any negative considerations? Explain
2. (TCOs 1, 2, 3, and 5) Determine the proper tax year for gross income inclusion in each of the following cases:

I. An automobile dealer has several new cars in inventory, but often does not have the right combination of body style, color, and accessories. In some cases the dealer makes an offer to sell a car at a certain price, accepts a deposit, and then orders the car from the manufacturer. When the car is received from the manufacturer, the sale is closed, and the dealer receives the balance of the sales price. At the end of the current year, the dealer has deposits totaling $8,200 for cars that have not been received from the manufacturer. When is the $8,200 subject to tax? Explain.

II. Purple Corporation, an exterminating company, is a calendar year taxpayer. It contracts to provide service to homeowners once a month under a one-, two-, or three-year contract. On April 1 of the current year, the company sold a customer a one-year contract for $120. How much of the $120 is taxable in the current year if the company is an accrual basis taxpayer? If the $120 is payment on a two-year contract, how much is taxed in the year the contract is sold and in the following year? If the $120 is payment on a three-year contract, how much is taxed in the year the contract is sold and in the following year? Explain
3. (TCOs 4 and 5) Gladys owns a retail hardware store in Tangipahoa. She is considering opening a business in Hammond, a community located 25 miles away. She incurs expenses of $60,000 in 2011 in investigating the feasibility and desirability of doing so. What amount can Gladys deduct in 2011 if the business is

I. another retail hardware store which she opens in December 2011? 

II. another retail hardware store which she decides against opening? 

III. a video rental store which she opens in December 2011? 

IV. video rental store which she decides against opening?
4. (TCOs 4 and 5) In 2011, Jean earns a salary of $150,000 and invests $20,000 for a 20% interest in a partnership not subject to the passive loss rules. Through the use of $400,000 of nonrecourse financing, the partnership acquires assets worth $500,000. The activity produces a loss of $75,000, of which Jean's share is $15,000. In 2011, Jean's share of the loss from the partnership is $7,500. How much of the loss from the partnership can Jean deduct?
5. (TCO 7) Audra acquires the following new five-year class property in 2011:

Asset Acquisition Date Cost
A January 10 $106,000
B July 5 $70,000
C November 15 $250,000
Total $426,000

Audra elects § 179 for Asset C. Audra's taxable income from her business would not create a limitation for purposes of the § 179 deduction. If Congress reenacts additional first-year depreciation for 2010, Audra elects not to take additional first-year depreciation. Determine her total cost recovery deduction (including the § 179 deduction) for the year.
6. (TCOs 6 and 7) Ollie owns a personal use car for which he originally paid $42,000. He trades the car in on a sports utility vehicle (SUV), paying the automobile dealer cash of $24,000. If the negotiated price of the SUV is $45,000, what is Ollie's recognized gain or loss and his adjusted basis for the SUV?
7. (TCOs 3, 4, and 6) Homer (age 68) and his wife Jean (age 70) file a joint return. They furnish all of the support of Luther (Homer's 90-year-old father), who lives with them. For 2011, they received $6,000 of interest income on city of Chicago bonds and interest income on corporate bonds of $48,000. Compute Homer’s and Jean's taxable income for 2011.
8. (TCOs 3, 4, and 6) Evan is employed as an assistant manager in the furniture division of a national chain of department stores. He is a recent college graduate with a degree in marketing. During 2011, he enrolls in the evening MBA program of a local university and incurs the following expenses: tuition, $4,300; books and computer supplies, $900; transportation expense to and from the university, $350; and meals while on campus, $300. Evan is single and his annual AGI is less than $65,000. Regarding these expenses, what are Evan's:

I. Deductions for AGI?

II. Deductions from AGI?

ACCT 429 Week 7 Research Project

As we learned in Week 4, the Code allows taxpayers to take a deduction for the cost of meals when taxpayers have been deemed to be "away from home" for tax purposes. This determination can be difficult. Two separate clients came to you with questions as to whether they are entitled to take a deduction for the cost of meals incurred during a particular trip. The facts pertaining to each are:
1. Tracey is a sales representative for a national pharmaceutical company. She has a rather large sales territory, and she makes her rounds to her customers using a company-owned car over a 16- to 19-hour period of time. During these one-day business trips, Tracey will pull over in a suitable location (such as a park or a rest stop) and take a short nap in the backseat of her automobile.
2. Mark captains a ferryboat. This ferryboat carries tourists on roundtrips from Seattle to Victoria and back, each trip of which lasts from 15 to 17 hours and provides for a 6- to 7-hour layover in Victoria. During the layover, Mark typically takes a four-hour nap on a cot that he has stored in the pilothouse of the ferryboat.
Under each of these circumstances, if the taxpayer entitled to deduct the cost of meals purchased during the trip at issue?
Week 7 Research Project (Set #1) DeVry University Acct 429
It appears as though a couple of your clients have encountered an unfortunate development in their financial situation. Cindy and Ralph Edmonds own TidyCo., Inc. TidyCo, in turn, owns and operates several coin Laundromats in and around Dubuque, Iowa. Over the last two years, the Edmonds made weekly deposits of the Laundromat receipts to corporate and personal bank accounts. However, it now also appears (unknown to you!) That they also siphoned off a portion of the weekly collections and took them home rather than depositing them. These amounts, which appear to total about $200,000 were hidden in shoe boxes around the house and (surprise!) were not reported as income.
The IRS found out about these amounts and has notified them that it intends to bring criminal tax evasion charges against them under Section 7201 of the Code. The IRS has made quite clear that it believes that the Edmonds’ actions constitute prima facie evidence that they intended to defraud the government and should therefore be liable under the statute.
As their accountant, you know that TidyCo has a deficit in both its accumulated and current E&P accounts and that this deficit has existed over the entire period that the IRS contends the Edmonds illegally invaded income taxation. It also appears as though the Edmonds’ basis in their TidyCo stock is $300,000 (before the stashed-away money at their home is considered). Do these facts have any bearing on the evasion charges the IRS seeks to bring against them?

ACCT 429 All 7 Weeks Discussions

ACCT 429 Week 1 DQ 1 Does the Tax Code Need Fixing
ACCT 429 Week 1 DQ 2 Progressive Taxation- Good Or Evil
ACCT 429 Week 2 DQ 1 Floods and Lightning and Theft—Oh My
ACCT 429 Week 2 DQ 2 So You Want to Own and Rent Real Estate
ACCT 429 Week 3 DQ 1 Basis- What Is It, and Why Do We Care
ACCT 429 Week 3 DQ 2 You Decide- Tax Capital Gains
ACCT 429 Week 4 DQ 1 Employee Or Proprietor- Who Cares
ACCT 429 Week 4 DQ 2 Family-Based Deductions
ACCT 429 Week 5 DQ 1 Corporate Formation and the Tax Agent
ACCT 429 Week 5 DQ 2 Taxation of Corporate Dividends
ACCT 429 Week 6 DQ 1 S Corporations- Can Just Anyone Join
ACCT 429 Week 6 DQ 2 Why Do We Separate State Income

Click below link for Answers

© Copyright 2015 Work Bank Theme by Workbank