Chapter 4 Problems

# Chapter 4 Problems - amount from the cost of the sale of...

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Chapter 4 Problems 21,22,23,24,25,26,27,28,29,30,32,39,EXPLAIN YOUR ANSWERS!!!Initial Submission Due Sept 27 21) \$35,000 because she only picked up that amount in 2011 and picked up the rest in 2012 22) Cal cory should file \$10,000 and his wife should file \$25,000 23) Additional income should be \$ 1400; the use of the van should not be considered an income 24) She should include the \$6,000 teaching assistantship, all the prizes from the beauty contest so  \$ 14,000 cash, \$25,000 car value, \$10,000. 25) He should include \$9,500 rental income and will later deduct \$500 from the security deposit on  the year he will return it. 26) \$260,000, she has not received the \$50,000 in the year of 2011 27) Yes it is a taxable stock dividend. The 20 shares received will be evaluated at market value and  will be taxed according to that.  28) He should record whatever amount the shares first cost when he bought them, and deduct that

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Unformatted text preview: amount from the cost of the sale of the shares in 2011. If there is a net profit in the sale of the shares, then that profit will be taxed. 29) \$800 30) a) he should record a \$400 income per week because it is a compensation for his services as an employee for the motel b) he should record the \$1,000 as income because he is still receiving that as a compensation for his services and the fact that he transfers it to his son does not matter c) he should record the \$500 as income and \$100 as an exemption for child support. 32) Arnold will record the house payments as deductions for mortgage , record all the payments made to his family for alimony and child support as well as expenses. Barbara will not record any deductions and income. 39)...
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## This note was uploaded on 09/27/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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Chapter 4 Problems - amount from the cost of the sale of...

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