Accountancy 503-01 - Spring 2017
January 23, Class Work
Problem 1
Alex is a wage earner. He just received his 2016 W-2 showing salaries and
wages of $97,500 (box 1), social security withholding of $6,045, Medicare
withholding of $1,413.75, and income tax
Multiple Choice Questions
12.
The net assets of a corporation are equal to:
A.
Contribute
d capital.
B. Retained earnings.
C. Shareholders' equity.
D. None of the above.
AACSB: Reflective Thinking
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
BUS497ABH
Spring 2010
Chapter 5 Review Questions
There is only ONE correct answer for each question.
1. Concentrating solely on one form of competitive advantage generally leads to the highest possible level of
profitability.
2. An important disadvantage
Form
706
United States Estate (and Generation-Skipping Transfer)
Tax Return
(Rev. August 2013)
Department of the Treasury
Internal Revenue Service
3a
Decedents first name and middle initial (and maiden name, if any)
1b Decedents last name
CLARK
Part 1Dece
Multiple Choice Questions
25.
The investment category for which the investor's
"positive intent and ability to hold" is important is:
A.
Securities reported
under the equity
method.
B. Trading securities.
C. Securities classified as held to maturity.
D. S
Chapter 01
Strategic Management: Creating Competitive Advantages
True / False Questions
1. The success Apple, Inc achieved over the past decade was a direct result of the creative and
forceful leadership of its late CEO, Steve Jobs. According to the text,
Personal and Dependency
Exemptions; Filing Status;
Determination of Tax for an
Individual; Filing Requirements
4
Solutions to Problem Materials
Discussion Questions
4-1
4-2
The personal exemption is a deduction allowed each taxpayer. On a joint return,
Accountancy 503-01 - Spring 2017
January 23, Class Work
Problem 1
Alex is a wage earner. He just received his 2016 W-2 showing salaries and
wages of $97,500 (box 1), social security withholding of $6,045, Medicare
withholding of $1,413.75, and income tax
Deductions!
7
Overview of Deductions
and Losses
Solutions to Problem Materials
Discussion Questions
7-1
The general requirements for a deduction are contained in 162 and 212. If these
requirements are met and the expense is not disallowed (or limited) by
6
Gross Income:
Inclusions and Exclusions
Solutions to Problem Materials
Discussion Questions
6-1
6-2
6-3
a. False. Receipts are included in gross income unless specifically listed as excludable. (See p.6-2 and 61(a).)
It is the taxpayers responsibili
Taxable Entities; Tax Formula;
Introduction to Property
Transactions
3
Solutions to Problem Materials
Discussion Questions
3-1
3-2
3-3
3-4
The three classes of taxable entities under the Federal income tax system are:
1. Individuals;
2. Regular corp
13
The Alternative Minimum
Tax and Tax Credits
Solutions to Problem Materials
Discussion Questions
13-1 Two sets of books may be required in the sense that many items must be computed
in one manner for regular tax purposes and another manner for alternat
1
An Overview of Federal Taxation
Solutions to Problem Materials
Discussion Questions
1-1
A tax base is the amount upon which a tax is levied. The tax base for the Federal
income tax is called taxable income and is the taxpayers total income less exclusi
17
Property Transactions:
Dispositions of Trade
or Business Property
Solutions to Problem Materials
Discussion Questions
17-1 Section 1231 property consists of depreciable property and land used in a trade or
business or for rental and held for more than
Worker
Compensatio
n
Its Not Always in a
Check!
Worker Classification
Employee v. Independent Contractor
The government favors employee status, generally because
of third-party reporting (Form W-2) and withholding.
Tax at issue is income tax withholding
19
sh is
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Corporations:
Formation and Operation
Solutions to Problem Materials
DISCUSSION QUESTIONS
19-1
There are six corporate characteristics. These are associates, profit motive, continuity of l
20
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Corporate Distributions,
Redemptions, and Liquidations
Solutions to Problem Materials
DISCUSSION QUESTIONS
20-1
A dividend is a distribution of cash or property by a corporation to its sha
18
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Employee Compensation and
Retirement Plans
Solutions to Problem Materials
DISCUSSION QUESTIONS
Yes. The dentist must recognize gross compensation income in an amount equal to the fair mark
2
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Tax Practice and Research
Solutions to Problem Materials
DISCUSSION QUESTIONS
2-1
a.
b.
T could be subject to one of several of the 20% accuracy-related taxpayer penalties, depending on
whe
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Property Transactions:
Basis Determination and
Recognition of Gain of Loss
14
Solutions to Problem Materials
Discussion Questions
Th
14-1 Gain or loss is realized any time a sale or other di
15
Nontaxable Exchanges
Solutions to Problem Materials
Discussion Questions
15-1 The question as to where ones principal residence is a question of facts and circumstances. The principal residence would be the one that truly more represents the
center of
11
Itemized Deductions
Solutions to Problem Materials
Discussion Questions
11-1 In addition to himself or herself, a taxpayer may deduct medical expenses attributable to his or her spouse and dependents. The status of a person as the taxpayers
spouse or
10
Certain Business
Deductions and Losses
Solutions to Problem Materials
Discussion Questions
10-1 The issue in this situation is whether the loan will be classified as a business or nonbusiness bad debt. The distinction is significant because business b
8
Employee Business Expenses
Solutions to Problem Materials
Discussion Questions
8-1
Whether the advice J has received is correct depends primarily on his current situation and the purpose of the education expenses. Educational expenses that are
related
Chapter 4.
1.
The text suggests that talented professionals are typically most concerned about financial rewards. Money is the
top reason why such employees take and leave jobs.
2.
Social capital is found in the knowledge, skills, and abilities of individ
Exam 1- Chapters 1 * , 3 - 4, 13, 14, 16
Ch 1*= pp. 1-10
1-1). Tax bases: Describe the tax bases for the Federal income tax and for each of the Federal
wealth transfer taxes
A tax base is what actually is being taxed. Tax base is multiplied by some tax ra
Chapter 5
Gross Income
Definition of Gross Income
Section 61: Gross Income Defined
(a) General definition. Except as otherwise provided in this subtitle, gross income
means all income from whatever source derived, including (but not limited to)
the follow
TrueorFalse
True1.Fordepreciableassetsplacedinservicebefore1981,theclasslifesystemthatestablishedusefullivescouldbeelected.
True2.Ataxpayermayusefactsandcircumstancestodeterminedepreciationallowances(inlieuofMACRS)ifthelifeoftheassetisstatedintermsof
unit
Chapters 7 and 8
Overview of Deductions and Losses
1
Requirements for Deduction
Contrast with income
Everything is taxable except whats not
Nothing is deductible except what is
Requirements
Statutory authority is required
Authorization
General
Spe
Priority list for exam 2
Ch 5: Cash vs accrual generally, basic concepts, everything under identification of
taxpayer
- Cash method of accounting pp. 5-15
- Accrual method of accounting pp. 5-20
- identification of taxpayer pp. 5-33 to 5-40
Ch 6: Employee
Chapter 8
Employee Business Expenses
1
Educational Expenses: Requirements
General rules
Educational expenses are deductible under 162
as business expenses if undertaken to either
Maintain or improve skills in current employment
Meet express requireme
Chapter 13
Alternative Minimum Tax and
Tax Credits
1
Chapter 13
Alternative Minimum Tax
2
Minimum Tax History
Overview
Alternative method to compute the tax for all
taxpayers
Compare regular tax to alternative minimum tax
and pay the larger
Purpose
