Which of the following is not considered “constructive receipt” of income? 51. Ms. K was informed her check for services rendered was available on December 16, 2010, but she a. waited until January 16, 2011 to pick up the check. Earned income of Mr. D was received by his agent on December 30, 2010, but not received by D until b. January 3, 2011. Mr. W received a check on December 30, 2010 for services rendered, but was unable to make a deposit c. until January 3, 2011. A payment on a sale of real property was placed in escrow on December 16, 2010, but not received by d. Ms. B until January 10, 2011, when the transaction was closed. Under the terms of their divorce agreement executed in October 2010, Keith transferred Corporation M 52. stock to his former wife, Karen, as a property settlement. At the time of the transfer, the stock had a basis to Keith of $20,000 and a fair market value of $50,000. What is the tax consequence of this transaction to Keith, and what is Karen’s basis in the Corporation M stock? 53. follow: (1.) Transfer the title in their resort condo to Stan. At the time of the transfer, the condo had a basis to Anne of $75,000, a fair market value of $95,000; it was subject to a mortgage of $65,000. (2.) Anne is to make the mortgage payments for 17 years regardless of how long Stan lives. Anne paid $8,000 in 2010. (3.) Anne is to pay Stan $1,000 per month, beginning in February, for 10 years or until Stan dies. Of this amount, $300 is designated as child support. Anne made fi ve payments of $900 each in 2010 (February- June). What is the amount of alimony from his settlement that is includible in Stan’s gross income for 2010? $3,000 a. $3,500 b. $11,000 c. $38,500 d. During 2010, Milton Hanover was granted a divorce from his wife. The divorce decree stipulated that he 54. was to pay both alimony and child support for a speci fi ed period of time. In examining his records for 2010, the following information is available: Salary $50,000 Interest received on bank deposits 2,000 Interest received on municipal obligations 1,000 $53,000 Alimony paid 3,600 Child support 4,800 What is Hanover’s adjusted gross income for 2010? $44,600 a. $48,400 b. $49,400 c. $52,000 d. Mark Mayer, a cash basis taxpayer, leased property on June 1, 2010, to Perry Purly at $325 a month. Perry 55. paid Mark $325 as a security deposit which will be returned at the end of the lease. In addition, Perry paid $650 in advance rent which is to be applied as rent to the last two months in the lease term. The lease is to run for a two-year period. What is Mark’s rental income for 2010?
429 Testbank © 2010 CCH. All Rights Reserved. Chapter 4 $1,950 a. $2,275 b. $2,600 c. $2,925 d. $3,250 e. Percy Peterson received a grant from the Department of Education for a special research project on 56.
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