2014 2015 salaries 500000 600000 materials 90000

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20142015Salaries $ 500,000 $ 600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising - 20,000 Equipment depreciation15,000 14,000 Cost of market survey 8,000 The new product will be introduced for sale beginning in July 2016. Determine the amount of deduction for research and experimental expenditures for 2014, 2015, and 2016 if:-
b. Blue Corporation elects to amortize the research and experimental expenditures for over60 months.
38. Sarah Ham, operating as a sole proprietor, manufactures printers in the United States. For 2014, the proprietorship has QPAI of $400,000. Sarah’s modified AGI was $350,000. The W-2 wages paid by the proprietorship to employees engaged in the qualified domestic production activity were $60,000. Calculate Sarah’s DPAD for 2014.
45. Part 1: Tax ComputationCompute Jane Smith’s 2013 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Forms 1040 and 4684 and Schedules A, C, and D.
45. Part 2: Tax PlanningIn 2014, Jane plans to continue her job with Legal Services, Inc. Therefore, items a,d, and l will recur in 2014. Jane plans to continue her typing services business (refer to item b) and expects gross receipts of $26,000. She projects that all business expenses (refer to item h) will increased 10%, except for office rent, which, under the terms of her lease, will remain the same as in 2013. Items e, f, g, j, k, and s will not recur in 2014. Items c, i, m, n, p, q, and r will be approximately the same as in 2013.

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