Assignment 3<\/p>\n
Q-1- To make income taxable, income must be realized and recognized. Explain in your own words the difference between income realization and income recognition, and then provide a short numerical example to indicate the difference (Do not copy the same numerical example from other students). (1.5 mark)<\/p>\n
Answer<\/p>\n
Q.2- Mr. X and Mrs. Y are married and have two dependent children. P & Q They also fully support Mrs. Y\u2019s mother who lives with them and has no income. Their 2014 tax and other related information is as follows: (2 marks)<\/p>\n
Particulars <\/p>\n
Amount in $<\/p>\n
Total salaries <\/p>\n
320,000<\/p>\n
Bank account interest income <\/p>\n
7,000<\/p>\n
Municipal bond interest income<\/p>\n
3,000<\/p>\n
Value of employer provided medical insurance<\/p>\n
11,000<\/p>\n
Value of premiums for $ 100000 of group term life insurance provided by employer <\/p>\n
1,000<\/p>\n
Gift from X\u2019S parents<\/p>\n
30,000<\/p>\n
Gain from the sale of qualified small business stock acquired in 2008<\/p>\n
30,000<\/p>\n
Total itemized deductions <\/p>\n
32,000<\/p>\n
Dividend income\u2014from ABC stock, <\/p>\n
4,000<\/p>\n
Loan from X\u2019S parents<\/p>\n
10,000<\/p>\n
Required: Compute Mr. X and Mrs. Taxable income. (Show all calculations in proper \/good form.) <\/p>\n
Q.3- Ahmed\u2019s medical expenses include the following: (1.5 mark)<\/p>\n
Particulars <\/p>\n
Amount in $<\/p>\n
Food for personal use (expenses) <\/p>\n
2,000<\/p>\n
Travel allowances <\/p>\n
5,000<\/p>\n
Visitors fees<\/p>\n
1,000<\/p>\n
Prescription drugs<\/p>\n
1,200<\/p>\n
Eyeglasses<\/p>\n
700<\/p>\n
General purpose vitamins<\/p>\n
200<\/p>\n
Medical premiums<\/p>\n
21,700<\/p>\n
Doctors\u2019 fees<\/p>\n
4,000<\/p>\n
Hospital fees<\/p>\n
6,700<\/p>\n
Ahmed\u2019s AGI for the year is $66,000. He is single and age 59. Insurance company reimburses none of the medical costs and other related items. After considering the AGI floor, <\/p>\n
Required – What will be Ahmed\u2019s medical expense deduction?<\/p>\n","protected":false},"excerpt":{"rendered":"
Assignment 3 Q-1- To make income taxable, income must be realized and recognized. Explain in your own words the difference between income realization and income recognition, and then provide a short numerical example to indicate the difference (Do not copy the same numerical example from other students). (1.5 mark) Answer Q.2- Mr. X and Mrs. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78183","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78183"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78183\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}