Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

16) Alice is an attorney and earned S175.000 from her practice in the current year. Alice also owns three passive activities. The activities had the

image text in transcribed
16) Alice is an attorney and earned S175.000 from her practice in the current year. Alice also owns three passive activities. The activities had the following income and losses: 16) Partnership A Partnership B Partnership C S 40,000 S (32,000) S (24,000) What is Alice's adjusted gross income for the current year? B) $119,000. A) S159,000. C) $215,000. D) $175,000 Stuart owns a 20% interest in a partnership (not involved in real estate) in which his at-risk amount was $18,000 at the beginning of the year. The partnership produces a S50,000 loss for the year. What is Stuart's at-risk amount at the end of the year? A)$10,000. 1 17. B) $8,000. D) (S32,000). C) SO. 15) If one spouse sells a home and excludes the gain on the sale, the gain on the sale of a residence by the other spouse is: A) Never excluded. B) Excluded up to $250,000. C) Excluded up to $500,000. D) Excluded up to $250.000 plus any gain exclusion not used by the first spouse. 19 19) On December 28, 2018, Shelia sold 300 shares of Power Inc. (a publicly traded company) at a loss of $5,900. On January 5, 2019, Shelia repurchased 300 shares of Power Inc. A) Only $3,000 of the loss is allowed. B) The $5,900 loss is only allowed if Shelia has capital gains to offset the loss. C) The $5,900 loss is disallowed. D) The $5,900 loss is only allowed if Shelia's AGI is less than $100,000. 19) 20) Bailey owns a 20% interest in a partnership (not involved in real estate) in which his at-risk amount was $25,000 at the beginning of the year. During the year, Bailey receives a distribution of $20,000 from the partnership. The partnership produces an $80,000 los during the year. If you ignore the passive loss rules, Bailey's deductible loss for the year 20) Is: D) $80,000. B) $5,000. C) $25,000. A) $20,000 21) Shauntae is 75 years old. He purchased a single life annuity contract that will pay him 21) S3,000 per month for 10 years. The expected return under the contract is A) $450,000. D) $360,000. C) $482,400. B) $30,000. 22) 22) Which of the following is not an employer-sponsored retirement plan? A) Roth IRA C) SIMPLE B) 401(k). D) Qualified pension plan D-3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditors Letter Handbook

Authors: American Bar Association Business Law Section

2nd Edition

161438973X, 978-1614389736

More Books

Students also viewed these Accounting questions