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Please see attached document and answer questions in a word document Chapter 4 Question 19 Tom is 68 years old. His employer pays the premiums
Please see attached document and answer questions in a word document
Chapter 4 Question 19 Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of $110,000. The cost for Tom's coverage is $3,000. a. If the plan providing this coverage is nondiscriminatory and Tom is not a key employee, how much gross income does Tom have? b. How does your answer to (a) change if Tom is a key employee? c. If the plan is discriminatory, but Tom is not a key employee, what is Tom's gross income? d. How does your answer to (c) change if Tom is a key employee? Question 34 Carrie owns a business that she operates as a sole proprietorship. The business had a net prot of $25,000 in 2016. This is Carrie's only earned income. a. How much must she pay for self-employment taxes? b. How much can she deduct on her tax return? c. If the business had a net loss of $10,000 (instead of a $25,000 prot), how much in self-employment taxes must Carrie pay? Chapter 6 Question 37 Maureen operates a cosmetics sales business from her home. She uses 400 of 1,600 square feet of the home as an ofce for the entire year. Her income before her home ofce deduction is $3,400 and unapportioned expenses for the home are as follows: Mortgage interest$5,000Property taxes1,400Utilities1,200Repairs and maintenance600Depreciation for entire home6,000 a. How much can Maureen deduct for her home ofce if she uses the actual expense method? b. How much can Maureen deduct for her home ofce if she uses the simplied method? c. If any of the expenses are not deductible currently, how are they treated for tax purposes? Question 50 Ken, owner of Kendrick Corporation, needs to send an employee on a temporary assign-ment at a plant in another state. He can either send one employee for 18 months or two employees for 9 months each. Kendrick Corporation will pay for all the meal and lodging expenses while the employees are on their outoftown assignments. Does it make any diference from a tax perspective to Kendrick and to the employees which option Ken choosesStep by Step Solution
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