Submitted by: Submitted by zenashakir1
Views: 157
Words: 370
Pages: 2
Category: Business and Industry
Date Submitted: 02/20/2014 05:32 PM
Chapter Two
Group Two- Problems
1- A- E
B- I
C-I
D-I
E-I
F-I
G-I
H-E
J-E
K-I
2- $ 8,000
3- $300, Because is a service fee
4- Yes
5- 0%, 15%, 20%
6- The interested may be reported in the year the bonds are cashed or the year they mature.
7- See the form
8- A- 1- None, 2- $200/ month, B- 1- None , 2- $400,000
9- Arlen $2,000, Jane, $2,000
10- Cindy- None, Allen $500,000
11- A- $50,000
B- $350
C- $1,000,000
D- $50,000
12- A- $4,000
B- $15700
C- $3,500
13- $13333,332
14- $7,000
15- 1- $1600
2- $40,000
3- 260
4-$3, 9740
5- $317,920
6- 0
7- $40,000
8- $40,000
9- $24,000
16- $56000= (Because $100,000 total proceed)- $30,000 (Value) + $14,000( Premiums paid).
17- $1200
18- $20,000
19- $200,000
20- $7,500 because the $125,000 is excluded fair market value.
21- None
22- None
23- $20,000
24- $100,000
25- $2000 Because Allen is excluded the monthly payment and the $1500 is deductible and is excluded tax.
26- A- Meals and lodging are excluded from gross income provided they are for the convenience of the employer and they are furnished on the business premises.
B- Meals and lodging are excluded from gross income provided they are for the convenience of the employer and they are furnished on the business premises.
27- 8.33%
28- % 5 Because taxpayer in low tax brackets are likely to find that they earn a higher overall return investing in taxable bonds rather than comparable tax- free municipal bonds.
29- $3,250
30- $750
31- Yes, because the medical flexible spending account is excluded from employee’s gross income.
32- 1- $6,000
2- $3.000
3- $18,000
4- $ 30,000
5- $ 51,000
6- 0
7- $51,000
8- $25,000
9- $26,000
10- $9,000
11- 0
12- $9,000
13- $4,500
14- $3,000
15- 0
16- $3,000
17- $5,100
18- $3,000
33- A- Yes B- $20,000 C- %50