Part 1 Use the provided Excel spreadsheet for the Critical Thinking assignment for this week On Worksheet 1, Assume the there are no capital loss carryforwards in each of the independent situations presented You are to Calculate AGI that includes the property transactions Determine the amount and character (short term or long term) of any carryforward (if any) Part 2 On Worksheet 2, compute the tax liability given each independent situation presented Requirements Clearly identify the requirements being addressed Show all calculations within the cells of an Excel spreadsheet This means that you must use formulas and links so that the thought process can be examined Make good use of comments to convey your thought process as well No hard coding of solutions Submit a single MS Excel file for grading Each scenario listed below is independent Part 1 Part 2 a The taxpayer has W 2 income of $50,000 and sold stock purchased 6 months ago for $5,000 The shares were purchased for $500 b The taxpayer has W 2 income of $50,000 and sold stock purchased 3 years ago for $5,000 The shares were purchased for $50 c The taxpayer has W 2 income of $50,000 and sold personal residence purchased 3 years ago for $400,000 The home was purchased for $100,000 (with no other basis adjustments) d The taxpayer has W 2 income of $50,000 and sold personal residence purchased 3 years ago for $400,000 The home was purchased for $300,000 (with no other basis adjustments) e The taxpayer has W 2 income of $50,000 and sold stock purchased 3 years ago for $5,000 The shares were purchased for $5000 f The taxpayer has W 2 income of $50,000 and sold stock purchased 3 months ago for $5,000 The shares were purchased for $500 g The taxpayer has W 2 income of $50,000 The taxpayer made a loan (with a written agreement) to a friend for $2,000 The friend filed for bankruptcy and will not be repaying the loan h The taxpayer has W 2 income of $50,000 The taxpayer made a loan (with a written agreement) to a friend for $5,000 The friend filed for bankruptcy and will not be repaying the loan

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jan 09, 2021

Part 1. Use the provided Excel spreadsheet for the Critical Thinking assignment for this week. On Worksheet 1, Assume the there are no capital loss

Part 1. Use the provided Excel spreadsheet for the Critical Thinking assignment for this week. On Worksheet 1, Assume the there are no capital loss carryforwards in each of the independent situations presented. You are to:

Calculate AGI that includes the property transactions

Determine the amount and character (short-term or long-term) of any carryforward (if any)

Part 2. On Worksheet 2, compute the tax liability given each independent situation presented.

Requirements:
Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.

	Each scenario listed below is independent	Part 1	Part 2
a	The taxpayer has W-2 income of $50,000 and sold stock purchased 6 months ago for $5,000. The shares were purchased for $500
b	The taxpayer has W-2 income of $50,000 and sold stock purchased 3 years ago for $5,000. The shares were purchased for $50
c	The taxpayer has W-2 income of $50,000 and sold personal residence purchased 3 years ago for $400,000. The home was purchased for $100,000 (with no other basis adjustments).
d	The taxpayer has W-2 income of $50,000 and sold personal residence purchased 3 years ago for $400,000. The home was purchased for $300,000 (with no other basis adjustments).
e	The taxpayer has W-2 income of $50,000 and sold stock purchased 3 years ago for $5,000. The shares were purchased for $5000
f	The taxpayer has W-2 income of $50,000 and sold stock purchased 3 months ago for $5,000. The shares were purchased for $500
g	The taxpayer has W-2 income of $50,000. The taxpayer made a loan (with a written agreement) to a friend for $2,000. The friend filed for bankruptcy and will not be repaying the loan
h	The taxpayer has W-2 income of $50,000. The taxpayer made a loan (with a written agreement) to a friend for $5,000. The friend filed for bankruptcy and will not be repaying the loan