• What is the amount of Medicare tax withheld from his salary?

• Provide answers to the following questions:

What form does an employer use to report wages to an employee?When must the employer give this form to the employee?What form does an employer use to report wages to the Social Security Administration?When must the employer file the form with the Social Security Administration?During 2015, Jay is a partner in an automobile dealership. Jays amount at risk at the beginning of the year is $90,000, and during 2015 Jays share of the dealerships ordinary loss is $120,000.

a.	What is the amount of the loss from the automobile dealership that Jay may deduct in 2015?
b.	If the dealership has a profit of $63,000 in 2016, how much of the 2016 income is taxable to Jay?

• Calculate the corporate tax liability in each of the following circumstances:

a.	X Corporation has taxable income of $250,000 for its 2015 calendar tax year.
b.	Y Corporation has $1,500,000 in taxable income for 2015.

Fran, George, and Helen form FGH Corporation. In exchange for 300 shares of stock of the corporation, Fran contributes property with a basis of $15,000, fair market value of $50,000 and subject to a liability of $20,000 which the corporation assumed. George contributes property with a basis of $20,000, fair market value of $30,000 in exchange for 250 shares of stock of the corporation with a value of $25,000 plus $5,000 cash. Helen performs services for the corporation and receives $2,000 worth of stock (20 shares) in exchange for the services.

a.	What is the amount of Frans recognized gain or loss on the transaction?
b.	What is Frans basis in the stock of the corporation?
c.	What is the corporations basis in the property received from Fran?
d.	What is the amount of Georges recognized gain or loss on the transaction?
e.	What is Georges basis in the stock of the corporation?

19. The Great Gumball Corporation is a gumball producer. The corporation has accumulated earnings of $425,000 and it can establish a reasonable need for $360,000. Calculate the amount of the accumulated earnings tax, if any, that will be imposed on the corporation.