Chapter_4_Problems solution - recorded 29) Only the second...

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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) $45,000 because she had an absolute right to the money in 2011. 22) Cal cory should file $10,000 and his wife should file $25,000 23) Additional income should be $ 1100; 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 $9,000 rental income. 26) $260,000, she has not received the $50,000 in the year of 2011 27) No. None of the rules listed in 4401 have been violated. 28) He should record whatever amount the shares first cost when he bought them, and deduct that 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. So $12-$7.27 = $4.73 profit per share that should be
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Unformatted text preview: recorded 29) Only the second policy is the dividend taxable. 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 32) a) the property transferred pursuant to a divorce decree does not give rise to income b) Is not treated as alimony c) generates tax deduction of $1,500 per month for Arnold and income to Barbara of $1,500. 39) The cancellation of debts results in income of $10,000 if the corporation is not in bankruptcy, if in bankruptcy there is no income. Before the cancellation, the assets were $100,000 and the debt were $140,000. After the cancellation the assets are $100,000 and the debts are $90,000....
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This note was uploaded on 10/19/2011 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 solution - recorded 29) Only the second...

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