quiz 2 - 1. T urner, a successful executive, is negotiating...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Turner, a successful executive, is negotiating a compensation plan with his potential employer. The employer has offered to pay Turner a $720,000 annual salary, payable at the rate of $60,000 per month. Turner counteroffers to receive a monthly salary of $50,000 ($600,000 annually) and a $180,000 bonus in 5 years when Turner will be age 65. (Points: 3) If the employer accepts Turner's counteroffer, Turner will recognize $65,000 ($780,000 ÷ 12) each month. If the employer accepts Turner's counteroffer, Turner will be in constructive receipt of $60,000 per month. If the employer accepts Turner's counteroffer, Turner will be in constructive receipt of $60,000 per month and the $180,000 bonus. If the employer accepts Turner's counteroffer, Turner will recognize as gross income $50,000 per month and $180,000 in year 5. None of the above. 2. Jim and Nora, residents of a community property state, were married in 2006. Late in 2007 they separated, and in 2009 they were divorced. Each earned a salary, and they received income from community owned investments in all relevant years. They filed separate returns in 2007 and 2008. (Points: 3) In 2007 and 2008, Nora must report only her salary and one-half of the income from community property on her separate return. In 2007, Nora must report on her separate return one-half of the Jim and Nora salary and one-half of the community property income. In 2008, Nora must report on her separate return one-half of the Jim and Nora salary
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

quiz 2 - 1. T urner, a successful executive, is negotiating...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online