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PROBLEM #1 .(15 PTS) While she was an unemployed college student, Juliet worked in the cafeteria located near campus. She thinks a bookstore located on

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PROBLEM #1 .(15 PTS) While she was an unemployed college student, Juliet worked in the cafeteria located near campus. She thinks a bookstore located on the other side of campus would be successful. She incurs expenses of $52,000 (accounting fees, marketing survey, etc.) in exploring its business potential. Her parents have agreed to loan her the money required to start the business. What amount of these investigation costs can Juliet deduct if a. She opens the business on March, 1 2019 b. She decides not to open the bookstore. PROBLEM #2 (15 PTS) In 2018, Theresa was in an automobile accident and suffered physical injuries. The accident was caused by Ramon's negligence. In 2019, Theresa collected from his insurance company. She received $15,000 for loss of an ear and part of her mouth, $25000 punitive damages, and $8,000 for medical expenses which she had deducted on her 2018 tax return. How is Theresa's 2019 gross income affected by these events? Please explair. PROBLEM #3 (15 PTS) ng the current year, Doris received a large gift from her parents and a sizeable inheritance from an uncle. She also paid s on an insurance policy on her life. is confused because she cannot find any place on Form 1040 to report these items. Please explain. PROBLEM #4 (20 PTS) Please discuss the requirements of filing as Head of Household. PROBLEM #5 (20 PTS) Please discuss all the tests that must be met in order to claim an individual as a dependent as a Qualifying Child. PROBLEM #6 (15 PTS) John sells his son, Jeffrey, 5 the shares Tim, for $130,000. Please discuss 00 shares of Cunos, Inc. stock for S120,000. He purchased 5 vears ago for $128,000. Six months later, Jeffrey sells the stock to his friend, the tax effects of these transactions to John and Jeffrey

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