Agi 36000 4000 10200 50200 50200 agi personal

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P5-335125P5-2051455155P5-
Must be completed on your own.50015015505550555055505550755075507550755101511551155125512551255125512551255145515551455155
514551455145514551555145514551455155518552015202
page 5-5 A.page 5-5 B.GI36000GI + II + SSComputation (lessor of)II4000SS10200AGI50200
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Additional ProblemsChapter 4Gross IncomeMultiple Choice—Rental IncomeP4-4444. c. Rental income includes the floor repairs of $950 and the advance rents of $3,000received by Mr. Wolf.Multiple Choice—Rental IncomeP4-4545. d. $10,000. As a cash basis taxpayer, Roger must include in income a prepayment ofrental income. Roger received under the "claim of right" doctrine income withoutrestrictions. Therefore it is taxable in the year received.Multiple Choice—AlimonyP4-4646. b. The payments must be cash payments received by a former spouse.Multiple Choice—DivorceP4-4747. c. $8,400. Cash payments made to a third party qualify as alimony if they benefit thepayee spouse. Since Laura owns the life insurance policy, Robert's payment of the$3,000 premium is deductible as alimony by him. The divorce decree obligates Robertto pay the mortgage, therefore he may deduct as alimony only one-half of the mortgagepayment, or $5,400.Multiple Choice—Fruit-of-the-TreeP4-4848. b. The assignment of income doctrine states that "income is taxed to the individual whoearned it, even if the right to the income has been transferred to another individual priorto recognition."Multiple Choice—IncomeP4-4949. d. Inheritance is not included in the calculation of income.Multiple Choice—AlimonyP4-5050. d. The custodial parent is entitled to the dependency exemption unless the custodialparent waives this right in writing.Multiple Choice—Constructive Receipt IncomeP4-5151. b. In part (a), the taxpayer has the right to pick up the check on December 15. In part (c),taxpayer's agent received income on December 30 and that is the same as the taxpayerreceiving it. For part (d), the taxpayer actually received the check. Whether or not shedeposits the check is immaterial. In part (e), the taxpayer received stock on December30 and it is income at that time. That she sold it later did not affect the transaction.Accordingly, the correct answer is (b). The taxpayer did not receive the asset untilJanuary 12, 2016; therefore, he had no income in 2015.Multiple Choice—Dividend Income
P4-5252. b. A proportionate distribution of stock does not give rise to dividend income.

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