Please answer all questions
Question 1 0.1 pts Mark and Mary have been married for 12 years and have no children. They are getting divorced on January 1, 2021. Mark comes to you for tax planning advice. Mary has offered Mark the choice of one of the following alternatives as part of the divorce settlement: Option 1: Mary will give Mark stock (FMV = $50,000, AB = $15,000); or Option 2: Mary will pay Mark $2,000/month alimony until Mark finishes graduate school and can secure full-time employment (approx. 25 months). If Mark elects the stock, what is Mark's gross income from receipt of the stock in 2021? Question 2 0.25 pts Same facts as previous question. If Mark elects the stock and years later sells the stock for $50,000, in the year that Mark sells the stock, what is Mark's gross income (recognized gain) from the sale Elizabeth Iyon 2001 roblem Set of the stock? Question 3 0.1 pts Same facts as previous two questions. If Mark elects the $2,000/month payments instead of the stock, what amount, if any, does Mark included in gross income? Assume the divorce agreement is finalized January 1, 2021, and Mark receives 12 payments ($24,000 total) in 2021. Question 4 0.1 pts Same facts as previous questions except Mark finalized his divorce agreement on January 1, 2018 If Mark elected the monthly payments, what amount, if any, of the $24,000 in total payments that Mary makes in 2021 ($2.000/month * 12 months) can Mary deduct on her 2021 federal income tax return? Enter your answer as a positive number. Question 5 0.25 pts In January 2020, Mary won a car in a raffle at her daughter's school. The FMV of Elizabeth I yon 2021 oblem Set the car was $35,000. Mary drove the car for 9 months, and then, in October 2020, when the car was worth $32,000, Mary gave the car to her friend. Mary is in the 24% marginal tax bracket, and Mary's friend is in the 10% marginal tax bracket. Which of the following is most accurate? Mary's friend should include the $32,000 value of the car in gross income in 2020 Mary should include the $35,000 value of the car in gross income in 2020 Mary does not have any income because she won the car, she didn't earn the car The car was a gift to Mary, so Mary can exclude the value of the car from her gross income None of the above Question 6 0.25 pts In 2020, Maria, single, received municipal bond interest of $10,000, California state disability insurance (CA SDI, not a replacement for unemployment compensation) of $5,000, Workers' Compensation of $15,000 and Social Security benefits of $10,000. Maria has no adjustments. What amount of Maria' SS benefits are included in gross income? Question 7 0.4 pts In 2021, Marcus, single, received municipal bond interest of $10,000, unemployment compensation of $5,000, ordinary dividends of $15,000 and Social Security benefits of $10,000. Marcus has no adjustments. What amount of Marcus' SS benefits are included in gross income? Elizabeth Lyon 2021 roblem Set Question 8 0.25 pts Rob, single, age 40, no dependents, earns a salary of $55,000 in 2020 and has no adjustments. Rob has no QBIo QBI deduction. Rob had medical expenses of $ 16,500 (before the % of AGI floor limitation). This is Rob's only itemized deduction. What is Rob's taxable income in 2020? Question 9 0.25 pts Rob, single, age 40, no dependents, earns a salary of $55,000 in 2020 and has an adjustment (deductible IRA contribution) of $5,000. Rob has no QBIo QBI deduction. Rob had medical expenses of $16,500 (before the % of AGI floor limitation). This is Rob's only itemized deduction. What is Rob's taxable income in 2020? Question 10 0.5 pts lan, 37, and Isabella, 36, are married and file a joint tax return. They have one zabeth Lyon 2021 olem Set child, Ingrid (Isabella's daughter from a prior marriage and is claimed as a dependent (QC) on lan & Isabella's joint return). In 2020, Isabella and lan had the following items: Salary (Isabella): $83,000 Salary (lan): $13,000 Scholarship: $6,500 ($2,500 used to pay lan's tuition at an eligible educational institution, $1,000 used to buy required textbooks, and $3,000 used to pay room and board) California Paid Family Leave (PFL): $2,000 Inheritance from Isabella's father: $100,000 Child support payments received from Isabella's ex-husband: $6,000 What is lan and Isabella's (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible. Question 11 0.3 pts Same facts as previous question. lan and Isabella paid the following expenses in 2020: Federal income taxes withheld on wages: $9,000 State & local income taxes: $8,000 Property taxes on principal residence: $5,000 Sales tax: $1,000 Interest on credit card used for personal travel: $4,500 Interest on $350,000 mortgage used to purchase principal residence: $2,000 Interest on $20,000 home-equity loan used to improve their principal residence: $1,000 lizabeth Lyon 2021 oblem Set Deductible student loan interest: $2,000 Deductible medical expenses (this is the amount after the % of AGI floor has been applied): $1,000 Unreimbursed employee business expenses (job supplies): $750 lan and Isabella's home is worth $550,000. They have proper records to substantiate all expenses. What is lan and Isabella's AGI? Question 12 0.25 pts Same facts as previous question. What amount of the taxes paid in 2020 can Isabella and lan deduct as an itemized deduction on their 2020 federal income tax return? Only consider taxes, not any other expenses, in answering this question. Enter your answer as a positive number. Question 13 0.4 pts What is the amount of lan and Isabella's total itemized deductions in 2020 (including deductible taxes from previous question and all other itemized deductions)? Enter your answer as a positive number. izabeth Lyon 2021 blem Set Question 14 0.3 pts What is lan and Isabella's 2020 taxable income? They have no QBI deduction. Question 15 0.3 pts In 2022, lan and Isabella donated Stock A to a public charity. Stock A had a fair market value of $80,000, and lan and Isabella purchased Stock A many years ago for $1,000 What is lan and Isabella's 2022 charitable contribution deduction (after application of the limitation) if, in 2022, lan and Isabella had gross income of $110,000 and adjusted gross income of $100,000? Enter your answer as a positive number. Question 16 0.25 pts Maria donated $80,000 cash to a public charity. If Maria's 2020 AGI is $70,000, what is Maria's 2020 itemized deduction resulting from her charitable contribution (after application of the limitation)? Enter your answer as a positive number. Question 17 0.25 pts Tim (40) and Tina (42) live in California. They have two dependent children, Todd (age 10) and Ted (age 17). In addition, Tim and Tina support Tim's brother, Bob. Bob is a dependent (qualifying relative) of Tim and Tina for tax purposes. What is the amount of Tim and Tina's 2020 child tax credit (including other dependent tax credit)? Enter your answer as a positive number. Assume that Tim and Tina's 2020 AGI is below the phaseout threshold for the child tax credit Question 18 0.2 pts Ann is single and works full-time. In 2020, Ann paid child care expenses of $6,000 for someone to care for her dependent child so that she could work. If Ann's AGI is $50,000, what is the amount of her Child and Dependent Care Expense (CDC) Credit? Assume Ann's credit percentage is 20%. Enter your answer as a positive number. Question 19 0.3 pts Betty is an aspiring CPA. In 2020, she finished her last semester at San Diego State, where she graduated with an undergraduate degree in accounting. Betty was a full-time student and paid $3,500 in tuition and to San Diego Stale in 2020 and paid $250 for required textbooks. Betty already claimed the American Opportunity Tax Credit in 2017, 2018 and 2019. izabeth Lyon 2021 blem Set Betty's husband, Barry, is a nurse. He is also pursuing his Masters in Nursing at University of San Diego. In 2020, he spent $8,000 on tuition for his graduate program. Barry also paid $500 for required textbooks. The tuition and books were not reimbursed by Barry's employer. Betty and Barry will file a joint tax return for 2020, and neither can be claimed as a dependent on anyone else's tax return. Their modified AGI is below the phaseout threshold for both the American Opportunity Tax Credit and Lifetime Learning Credit. What is the maximum amount of education tax credits that Betty and Barry can claim on their 2020 tax return? Enter your answer as a positive number rounded to the nearest whole dollar. Question 1 0.1 pts Mark and Mary have been married for 12 years and have no children. They are getting divorced on January 1, 2021. Mark comes to you for tax planning advice. Mary has offered Mark the choice of one of the following alternatives as part of the divorce settlement: Option 1: Mary will give Mark stock (FMV = $50,000, AB = $15,000); or Option 2: Mary will pay Mark $2,000/month alimony until Mark finishes graduate school and can secure full-time employment (approx. 25 months). If Mark elects the stock, what is Mark's gross income from receipt of the stock in 2021? Question 2 0.25 pts Same facts as previous question. If Mark elects the stock and years later sells the stock for $50,000, in the year that Mark sells the stock, what is Mark's gross income (recognized gain) from the sale Elizabeth Iyon 2001 roblem Set of the stock? Question 3 0.1 pts Same facts as previous two questions. If Mark elects the $2,000/month payments instead of the stock, what amount, if any, does Mark included in gross income? Assume the divorce agreement is finalized January 1, 2021, and Mark receives 12 payments ($24,000 total) in 2021. Question 4 0.1 pts Same facts as previous questions except Mark finalized his divorce agreement on January 1, 2018 If Mark elected the monthly payments, what amount, if any, of the $24,000 in total payments that Mary makes in 2021 ($2.000/month * 12 months) can Mary deduct on her 2021 federal income tax return? Enter your answer as a positive number. Question 5 0.25 pts In January 2020, Mary won a car in a raffle at her daughter's school. The FMV of Elizabeth I yon 2021 oblem Set the car was $35,000. Mary drove the car for 9 months, and then, in October 2020, when the car was worth $32,000, Mary gave the car to her friend. Mary is in the 24% marginal tax bracket, and Mary's friend is in the 10% marginal tax bracket. Which of the following is most accurate? Mary's friend should include the $32,000 value of the car in gross income in 2020 Mary should include the $35,000 value of the car in gross income in 2020 Mary does not have any income because she won the car, she didn't earn the car The car was a gift to Mary, so Mary can exclude the value of the car from her gross income None of the above Question 6 0.25 pts In 2020, Maria, single, received municipal bond interest of $10,000, California state disability insurance (CA SDI, not a replacement for unemployment compensation) of $5,000, Workers' Compensation of $15,000 and Social Security benefits of $10,000. Maria has no adjustments. What amount of Maria' SS benefits are included in gross income? Question 7 0.4 pts In 2021, Marcus, single, received municipal bond interest of $10,000, unemployment compensation of $5,000, ordinary dividends of $15,000 and Social Security benefits of $10,000. Marcus has no adjustments. What amount of Marcus' SS benefits are included in gross income? Elizabeth Lyon 2021 roblem Set Question 8 0.25 pts Rob, single, age 40, no dependents, earns a salary of $55,000 in 2020 and has no adjustments. Rob has no QBIo QBI deduction. Rob had medical expenses of $ 16,500 (before the % of AGI floor limitation). This is Rob's only itemized deduction. What is Rob's taxable income in 2020? Question 9 0.25 pts Rob, single, age 40, no dependents, earns a salary of $55,000 in 2020 and has an adjustment (deductible IRA contribution) of $5,000. Rob has no QBIo QBI deduction. Rob had medical expenses of $16,500 (before the % of AGI floor limitation). This is Rob's only itemized deduction. What is Rob's taxable income in 2020? Question 10 0.5 pts lan, 37, and Isabella, 36, are married and file a joint tax return. They have one zabeth Lyon 2021 olem Set child, Ingrid (Isabella's daughter from a prior marriage and is claimed as a dependent (QC) on lan & Isabella's joint return). In 2020, Isabella and lan had the following items: Salary (Isabella): $83,000 Salary (lan): $13,000 Scholarship: $6,500 ($2,500 used to pay lan's tuition at an eligible educational institution, $1,000 used to buy required textbooks, and $3,000 used to pay room and board) California Paid Family Leave (PFL): $2,000 Inheritance from Isabella's father: $100,000 Child support payments received from Isabella's ex-husband: $6,000 What is lan and Isabella's (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible. Question 11 0.3 pts Same facts as previous question. lan and Isabella paid the following expenses in 2020: Federal income taxes withheld on wages: $9,000 State & local income taxes: $8,000 Property taxes on principal residence: $5,000 Sales tax: $1,000 Interest on credit card used for personal travel: $4,500 Interest on $350,000 mortgage used to purchase principal residence: $2,000 Interest on $20,000 home-equity loan used to improve their principal residence: $1,000 lizabeth Lyon 2021 oblem Set Deductible student loan interest: $2,000 Deductible medical expenses (this is the amount after the % of AGI floor has been applied): $1,000 Unreimbursed employee business expenses (job supplies): $750 lan and Isabella's home is worth $550,000. They have proper records to substantiate all expenses. What is lan and Isabella's AGI? Question 12 0.25 pts Same facts as previous question. What amount of the taxes paid in 2020 can Isabella and lan deduct as an itemized deduction on their 2020 federal income tax return? Only consider taxes, not any other expenses, in answering this question. Enter your answer as a positive number. Question 13 0.4 pts What is the amount of lan and Isabella's total itemized deductions in 2020 (including deductible taxes from previous question and all other itemized deductions)? Enter your answer as a positive number. izabeth Lyon 2021 blem Set Question 14 0.3 pts What is lan and Isabella's 2020 taxable income? They have no QBI deduction. Question 15 0.3 pts In 2022, lan and Isabella donated Stock A to a public charity. Stock A had a fair market value of $80,000, and lan and Isabella purchased Stock A many years ago for $1,000 What is lan and Isabella's 2022 charitable contribution deduction (after application of the limitation) if, in 2022, lan and Isabella had gross income of $110,000 and adjusted gross income of $100,000? Enter your answer as a positive number. Question 16 0.25 pts Maria donated $80,000 cash to a public charity. If Maria's 2020 AGI is $70,000, what is Maria's 2020 itemized deduction resulting from her charitable contribution (after application of the limitation)? Enter your answer as a positive number. Question 17 0.25 pts Tim (40) and Tina (42) live in California. They have two dependent children, Todd (age 10) and Ted (age 17). In addition, Tim and Tina support Tim's brother, Bob. Bob is a dependent (qualifying relative) of Tim and Tina for tax purposes. What is the amount of Tim and Tina's 2020 child tax credit (including other dependent tax credit)? Enter your answer as a positive number. Assume that Tim and Tina's 2020 AGI is below the phaseout threshold for the child tax credit Question 18 0.2 pts Ann is single and works full-time. In 2020, Ann paid child care expenses of $6,000 for someone to care for her dependent child so that she could work. If Ann's AGI is $50,000, what is the amount of her Child and Dependent Care Expense (CDC) Credit? Assume Ann's credit percentage is 20%. Enter your answer as a positive number. Question 19 0.3 pts Betty is an aspiring CPA. In 2020, she finished her last semester at San Diego State, where she graduated with an undergraduate degree in accounting. Betty was a full-time student and paid $3,500 in tuition and to San Diego Stale in 2020 and paid $250 for required textbooks. Betty already claimed the American Opportunity Tax Credit in 2017, 2018 and 2019. izabeth Lyon 2021 blem Set Betty's husband, Barry, is a nurse. He is also pursuing his Masters in Nursing at University of San Diego. In 2020, he spent $8,000 on tuition for his graduate program. Barry also paid $500 for required textbooks. The tuition and books were not reimbursed by Barry's employer. Betty and Barry will file a joint tax return for 2020, and neither can be claimed as a dependent on anyone else's tax return. Their modified AGI is below the phaseout threshold for both the American Opportunity Tax Credit and Lifetime Learning Credit. What is the maximum amount of education tax credits that Betty and Barry can claim on their 2020 tax return? Enter your answer as a positive number rounded to the nearest whole dollar
