What are naomis taxable income items from these events for

Assignment Help Taxation
Reference no: EM131107657

1. Naomi was the beneficiary of a $100,000 insurance policy on her mother who died in January 2011. It took the insurance company several months to make the payment so she received $100,206 in May 2011. She was a joint tenant on a bank account with her mother. She inherited the $14,000 in the account that had all been deposited by her mother. After a long battle with her medical insurance company, Naomi received a $6,000 reimbursement in 2011 for an operation that she underwent in 2010. As a result of her high medical expenses, she was able to take a $7,000 deduction by itemizing on her 2010 tax return rather than taking the $5,700 standard deduction. What are Naomi's taxable income items from these events for 2011?

2. Carl, an employee of a Miami CPA firm, was sent to work in Tampa for eight months on March 1, year 1, on a financial audit. His monthly transportation expenses were $400, his monthly lodging was $1,200, and his meals were $800 per month. At the end of the sixth month, his employer determined that the audit was going to continue for eight more months due to an SEC investigation. How much of his expenses may Carl deduct if Carl's employer reimburses him for all of the expenses and includes the reimbursements in his income in years 1 and 2? How much may the employer deduct for these expenses in years 1 and 2?

3. A taxpayer has the following gains and losses from property transactions completed in 2011. What is the effect on the taxpayer's taxable income and income tax if the taxpayer is (a) an individual or (b) a corporation?

Long-term capital gain $21,000
Section 1231 gain 10,000
Section 1231 loss 12,000
Short-term capital gain 3,000
Short-term capital loss 18,000

4. Ardbeg Corporation has $800,000 of taxable income on which it pays a tax of $272,000. In determining its earnings and profits for the year, the accountant used the following information:

a. Ardbeg received a dividend of $20,000 from a company in which it has a 60 percentinterest.
b. It used a $30,000 capital loss carryover to offset its entire capital gain.
c. It was unable to deduct $12,000 of its charitable contribution due to the limitation.
d. It had a loss of $20,000 on the sale of some investments to its sole shareholder.
e. It received $10,000 in interest on City of Cleveland bonds

What is the corporations current earnings and profits?

Reference no: EM131107657

Questions Cloud

Explain the concepts and principles of financial management : In learning activity of this course, you have addressed various concept and principle of financial management. However, one important criterion for consummating knowledge in any domain is to be able to integrate the learning.
Implement and monitor whs policies : Assessment Task - BSBWHS401A Implement and monitor WHS policies, procedures and programs to meet legislative requirements. You must select, research, and conduct a toolbox talk on a type of workplace hazard that you have identified through consultat..
Find the attached itc case for the assignment. : The ITC Gardenia has indeed earned Platinum LEED certification since the case was written.Writing for the General Manager of the hotel, please do the following:
What is the amplitude of the oscillations : What is the amplitude of the oscillations
What are naomis taxable income items from these events for : Naomi was the beneficiary of a $100,000 insurance policy on her mother who died in January 2011. It took the insurance company several months to make the payment so she received $100,206 in May 2011. she was able to take a $7,000 deduction by itemizi..
Important characteristics of organizations : 1. Define "organization". What are the important characteristics of organizations? 2. Is your course instructor a manager? Discuss in terms of planning, organizing, leading, and controlling. Also, discuss using Mintzberg's managerial roles approac..
Describe the responsibilities and ethical concerns : How do governments attempt to control foreign businesses operating within their borders? When U.S. companies do business in other countries, what issues do they face? Describe the responsibilities and ethical concerns that you feel are important f..
Explain why limited leverage is good for business : Explain why limited leverage is good for business. Based on the given information, tax rate, and depreciation show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money.
Result of employee orientation programs : What are the advantages that accrue to an organization as a result of employee orientation programs?

Reviews

Write a Review

 

Taxation Questions & Answers

  Garth company sells a single product

1. Garth Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change

  Would a corporation be required to file a federal income tax

The corporation has disposed of all of its assets except for a small sum of cash retained to pay state taxes to preserve its corporate charter. Would a corporation be required to file a federal income tax return and under which section?

  How much should shirley include in income

How much should Shirley include in income if Lanny's payments are made in cash but will cease if Shirley dies or remarries?

  Evaluate john and sallys taxable income

John was divorced from Joyce in March 2010. Under the divorce agreement. Evaluate John and Sallys taxable income for 2011

  Describe the income tax consequences

Compute Kit Incs general rate income pool account balance as of December 31, 2011

  Cost of the property acquired by the new corporation

Specify the cost and ACB of the consideration received by Sidney, specify the PUC of the shares received by Sidney and indicate the cost of the property acquired by the new corporation.

  Analysis of taxation on charitable organisation

Analysis of taxation on charitable organisation or non profit making organisation

  Is the plant a partnership for federal income tax purposes

Consider the plant may elect out of Subchapter K...are mary, louise and nell subject to the self-employment tax on their distributive shares of the plants earnings, considering the output was purchased by mary, louise and nell rather than being di..

  Compute the amount of income before income taxes

Compute the amount of income before income taxes and ending inventory under (1) absorption costing and (2) direct costing.

  Estimate the tax rate for unusual write-offs

Compute the net earnings remaining after removing unusual write-offs and the extraordinary charge. Remove these items net of tax. Estimate the tax rate for unusual write-offs based on the taxes on operating income.

  Cost accounting systems used by manufacturing

Cost accounting systems used by manufacturing companies are based on the: Periodic inventory system.

  Exploring its business potential

Exploring its business potential

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd