Jack received 3000 in educational assistance benefits from his employer during

Jack received 3000 in educational assistance benefits

This preview shows page 14 - 18 out of 19 pages.

61. Jack received $3,000 in educational assistance benefits from his employer during 2013 to reimburse him for the cost of course tuition and fees for him to earn a degree. The benefits were paid under an accountable plan and were not included in Jack's W-2. He has a modified
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adjusted gross income of $20,000 and he files single. A list of Jack's 2013 expenses follows. What is Jack's deductible tuition and fee expense? -$500 for a bowling class not required for his degree -$2,000 for accounting courses required for his degree -$500 for textbooks -$500 for lab fees for courses required for his degree.*a. $0b. $4,500c. $4,000d. $3,00062. Ned Norton, a calendar year taxpayer, purchased an annuity contract which pays him $54 per month beginning June 1, 2013. This annuity cost him $2,400, and it has an expected return of $7,200. How much of this annuity is includible in gross income for the 2013 calendar year? Correct Answer: * This question has been adapted from the AICPA Examinations. Norton must include $252 in gross income, determined as follows: Cost of Annuity = Exclusion Ratio Expected Return $2,400 = 1/3 $7,200 $54/mo. x 7 = $378 $378 x 1/3 = $126 Return of Investment $378 - $126 = $252 Ordinary Income 63. Henry Adams, an unmarried taxpayer, received the following amounts during 2013: Interest on savings accounts $1,000 Interest on municipal bonds 500 Dividends on General Steel common stock 750 Dividends on life insurance policies 200
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How much taxable income should Henry report for 2013? Correct Answer: * This question has been adapted from the AICPA Examinations. Henry Adams's taxable income for 2013 is $1,750, computed as follows: Interest on savings account $1,000 Dividends on General Steel common stock 750 Taxable income $1,750 64. Dirk and Diane Davis are both employed solely by XYZ Corporation and each earned $15,000 in wages for 2013. With respect to the following items, what amount should be reported as income in addition to their wages?
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65. On January 1, 2013, Peter Piper invested in two series HH bonds. Bond No. 1 was issued in the name of Peter and his son as co-owners. Bond No. 2 was issued in the name of Peter's son, although Peter was named as the sole beneficiary. In 2013, Bonds No. 1 and No. 2 paid interest of $2,000 and $1,000, respectively. What is the amount of interest income to be reported by Peter and by his son for 2013?
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  • Fall '14
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  • Dividends, Taxation in the United States

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