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    Passive activity definition

    Which of the following is not generally classified as a passive activity? A. an activity in which the taxpayer does not materially participate B. a business in which the taxpayer owns an interest and works 1,000 hours a year C. a limited partnership interest D. rental real estate

    Active Business Income

    During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From Activity A, he earns $20,000 of income, and from Activity B, he incurs a $30,000 loss. As a result, Mark A. reports AGI of $80,000. B. reports AGI of $90,000 with a $10,000 loss carryover. C. repo

    Moving deductions

    Donald takes a new job and moves to a new residence. The distances are as follows: Old residence to new job 70 miles Old residence to old job 8 miles By how many miles does the move exceed the minimum distance requirement for the moving expense deduction?

    Employee Business Expenses and AGI Limit

    Sarah incurred employee business expenses of $5,000 consisting of $3,000 business meals and $2,000 customer entertainment. She provided an adequate accounting to her employer's accountable plan and received reimbursement for one-half of the total expenses. How much of the meals and entertainment will be deductible by Sarah witho

    Calculating Travel Deductions

    Norman traveled to San Francisco for four days on vacation, and while there spent another two days conducting business for his employer. Norman's plane fare for the trip was $500; meals cost $150 per day; hotels cost $300 per day; and a rental car cost $150 per day that was used for all six days. Norman was not reimbursed by his

    Auto accident and 2013 AGI

    Juanita, who is single, is in an automobile accident in 2012 and her car sustains $6,200 in damages. Because both drivers received tickets in the accident, Juanita does not expect to recover any of the loss from her insurance company. Juanita's 2012 AGI is $31,000, and she deducts a $3,000 loss on her 2012 tax return. Her other

    Deductible Loss After Limitation

    Jarrett owns a mountain chalet that he purchased in 1999 for $175,000. This year, the home appraised at $300,000. Shortly after the appraisal, a blizzard hit the area in spring of the current year, destroying trees and severely damaging several homes, including Jarrett's chalet. Its value was reduced to $135,000. Jarrett does no

    Deductible Loss and Rental Property

    Using 2013 Tax Code: Shaunda has AGI of $90,000 and owns rental property generating a $27,000 loss. She actively manages the property. Her deductible loss is: A. $0. B. $13,500. C. $25,000. D. $27,000.

    Discussion Questions

    Discussion questions for federal income tax: Types and Benefits John and Jill, who are married, reported 2012 itemized deductions of $7,500 and $500 respectively. John suggests that they file their Federal income tax returns separately-he will itemize his deductions from AGI, and she will claim the standard deduction. Expl

    How Inventory Tracking Technology Relates to Accounting Information Systems

    Please access the link below: http://mhlnews.com/facilities-management/back-basics-inventory-handling-and-tracking-technologies and discuss how inventory tracking technology relates to Accounting Information System . Please relate to internal controls. Do you think this technology can be used effectively?

    30 Accounting Study Questions

    1) The statement of cash flows is used for . 2) Non-operating items on the income statement . 3) The difference between a single-step and multiple-step income statement is that a single-step income statement . 4) Which one of the following statements is true? 5) The accounting convention uses the acquisition cost minus d

    Tax Considerations

    Dr. Mark Skousen, in his article, "Raising Cain: Why the 9-9-9- Tax Plan is a Dangerous Policy", states that Republican Herman Cain has gotten quite a bit of publicity about his new 9-9-9 tax plan. His bill would scrap the current tax system and replace it with a flat 9% corporate income tax, a 9% tax on individual income and a

    Kirsi Products' East Division

    Kirsi Products is decentralized. Division bonuses are based on return on investment (ROI), and so division managers are very careful about their ROI. Operating results for the company's East Division for last year are given below when the company's overall ROI was 18%: Sales $ 25,200,000 Variable expenses 14,000,000 Contr

    Equity-method reporting situations

    In what types of situations could it be appropriate to use equity-method reporting even though the investor does not hold voting common stock of the investee? Explain.

    Calculation of Market Value and Book Value

    Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $9.5 million.  The machinery can be sold to the Romulans today for $6.5 million.  Klingon's current balance sheet shows net fixed assets of $5.2 million, current  liabilities of $2.4 million, and net working capital of $800,000.  If all the

    Market Values and Book Values

    1. Klingon Cruisers, Inc.., purchased new cloaking machinery three years ago for $9.5 million. The machinery can be sold to the Romulans today for $6.5 million. Klingon's current balance sheet shows net fixed assets of $5.2 million, current liabilities of$2.4 million, and net working capital of $800,000. If all the current

    Stated Rate of Interest for Bonds

    FWP Co. issued $100,000, 10-year bonds on January 1, 2011. The stated rate of interest on the bonds is 10% payable annually on 12/31. Provide the requested information for the bonds immediately after issuance (January 1, 2011) under each of the three independent scenarios described below:

    Communicating effectively

    I need help to answer the following questions. Question 1: Describe situations where you have effectively demonstrated each of the forms of communication mentioned. Question 2: What did you do to help you communicate effectively? Question 3: How have your communication skills helped you to improve your performance elsewh

    Assessing Workplace Behavior

    Guidelines: To perform effectively you need to: - prioritise and plan your work to meet objectives, managing conflicting pressures and making best use of time and resources - ensure the quality of your work always meets or exceeds agreed requirements - develop and maintain effective working relationships - actively deve

    Accounting Rate of Return

    LaGrange Corp. has forecasted that over the next four years the average annual after-tax income will be $45,731. The average book value of the manufacturing equipment that is used is $167,095. What is the accounting rate of return?

    Accounting Information Systems, Internal Control, and Fraud

    Please copy and paste or click on the link below and discuss how accounting fraud relates to accounting information systems. Specifically discuss internal controls. Include whether you think this type of fraud can be controlled effectively. http://www.accountingtoday.com/news/SEC-Refocuses-Accounting-Fraud-66893-1.html

    AGI and Deduction

    Alan, who is a security officer, is shot while on the job. As a result, Alan suffers from a leg injury and must spend most of his time in a wheelchair until his recovery. Alan's physician recommends that he install a whirlpool bath in his home for therapy. During the year, Alan makes the following expenditures: Wheelchair

    Stock loss and taxing

    Ashley, a calendar year taxpayer, owns 400 shares of Yale Corporation stock that she purchased two years ago for $4,000. In the current year Ashley sells all 400 shares of the Yale Corporation stock for $2,400 on December 27. On January 4 of the following year, Ashley purchases 300 shares of Yale Corporation stock for $800. Ashl

    Calculating amount of deductible expenses

    Jimmy owns a trucking business. During the current year he incurred the following: Gasoline and Oil $ 100,000 Maintenance $ 15,000 Fines for Speeding and Illegal parking $ 8,000 Bribes to Government Inspection Officials

    Election campaigns and deductions

    Pat, an insurance executive, contributed $1,000,000 to the re-election campaign of Governor Stephens, in hopes that Stephens will appoint her to a coveted position on the State Board of Insurance. How much of the contribution can Pat deduct? A. $0 B. $100,000 C. $500,000 D. $1,000,000

    Total Material Variance and Material Variance

    1). Lata Inc., produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,250,000 ounces of aluminum. The actual cost of aluminum was $0.09 per ounce and the standard price was $0.08 per ounce. There are no begi

    Walgreens Accounting Policies

    Walgreen Co's 2010 annual report includes the following in the note that summarizes its accounting policies: Inventories are valued on a lower of last-in, first out (LIFO) cost or market basis. At August 31, 2010 and 2009, inventories would have been greater by $1,379 million and $1,239 million, respectively, if they had be