ACCT 553 Final Exam

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ACCT 553

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ACCT 553 Complete Class

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• ACCT 553 Week 3 Homework ES (Quiz Set 2)
• ACCT 553 Week 3 Homework
• ACCT 553 Week 4 Homework
• ACCT 553 Week 4 You Decide
• ACCT 553 Week 5 Homework ES (Quiz Set 1)
• ACCT 553 Week 5 Homework
• ACCT 553 Week 6 Assignment You Decide
• ACCT 553 Week 6 Homework
• ACCT 553 Week 7 Homework
• ACCT 553 Final Exam
• ACCT 553 Midterm Exam
• ACCT 553 Week 1 Homework

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ACCT 553 Final Exam

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• 1.
• (TCO E) Zelda Zayer has been a widow for over 3
  years and files a return as a single taxpayer.
  Items of income received by Zelda in 2011 were as
  follows. 
• (TCO E) Distinguish between realized gains and
  losses and recognized gains and losses. (Points
  17)
• (TCO F) Describe the current tax law for sale of
  residence. (Points 17)
• (TCO I) Amos, a single individual with a salary
  of 50,000, incurred and paid the following
  expenses during the year.
• Question 4.
•  
•  (TCO G) Briefly describe what "material
  participation" is. Why is the determination of
  whether a taxpayer materially participates
  important? (Points 17)
•  
• (TCO I) Amos, a single individual with a salary
  of 50,000, incurred and paid the following
  expenses during the year.
•  
• 6. (TCO I) A review of Bearing's Year 2 records
  disclosed the following tax information

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ACCT 553 Midterm Exam

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•  
• 1. (TCO C) Under current accounting practice,
  intangible assets are classified as (Points 5)
• 2. (TCO C) Which of the following intangible
  assets should not be amortized? (Points 5)
• 3. (TCO C) The intangible asset goodwill may be
  (Points 5)
• 4. (TCO C) ELO Corporation purchased a patent for
  90,000 on September 1, 2008. It had a useful
  life of ten years. On January 1, 2010, ELO spent
  22,000 to successfully defend the patent in a
  lawsuit. ELO feels that as of that date, the
  remaining useful life is five years. What amount
  should be reported for patent amortization
  expense for 2010? (Points 5)
• 5. (TCO C) During 2011, Bond Company purchased
  the net assets of May Corporation for 1,000,000.
  On the date of the transaction, May had 300,000
  of liabilities. The fair value of May's assets
  when acquired were as follows
• 6. (TCO D) Which of the following is a condition
  for accruing a liability for the cost of
  compensation for future absences? (Points 5)
• 7. (TCO D) Which of the following taxes does not
  represent a payroll deduction a company may
  incur? (Points 5)
• 8. (TCO D) Assume that a manufacturing
  corporation has (1) good quality control, (2) a
  one-year operating cycle, (3) a relatively stable
  pattern of annual sales, and (4) a continuing
  policy of guaranteeing new products against
  defects for three years that has resulted in
  material but rather stable warranty repair and
  replacement costs. Any liability for the warranty
  (Points 5)

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ACCT 553 Week 1 Homework

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• Chapter 1 (5 pts)
• 1. Briefly discuss the purpose of the Sixteenth
  Amendment
• Chapter 2 (5 pts)
• 2. Explain the two "safe harbors" available to an
  Individual taxpayer to avoid a penalty for
  underpayment of estimated tax.
• Chapter 3 (5 pts)
• 3. Explain the distinction between an "above the
  line" deduction (i.e. FOR AGI) and a below the
  line deduction (i.e. FROM AGI). Which one is more
  valuable?
• Chapter 13 (5 pts)
• 4. What is an Installment Sale? Is it a form of
  income "deferral" ? When can't you elect this
  form of reporting?

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ACCT 553 Week 2 Homework

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• Chapter 4
• 1. Your brother is short on cash and cannot pay
  his rent this month. You pay his rent for him. Is
  this taxable income to your brother? Do you get a
  deduction? (2 pts)
• 2. Which of the following items would
  be excluded from income? (a) 100 bill found
  under the sugar caddy at the restaurant (b)
  Inheritance of a car from your grandmother valued
  at 5,000. (c) Loan from your father-in-law to
  start your business, (d) Child Support received
  totaling 16,500. (4 pts)
• Chapter 5
• 3. Shaun Kayla earned the following in 2013
  Interest on a Savings account of 36, Interest on
  a U.S. Series EE Savings Bond of 25, Interest on
  a CD that has not matured yet of 20. How much
  taxable interest income must they report on their
  2013 tax return? (4 pts)
• 4. Explain what a Cafeteria Plan is (hint it has
  nothing to do with what you eat between classes
  -) ). (5 pts)
• Chapter 6
• 5. Explain the limitations placed on the
  deductibility of Business Gifts? What code
  section dictates this treatment? (5 pts)

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ACCT 553 Week 3 Homework ES (Quiz Set 1)

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• 1. (TCO A) A taxpayer may litigate a tax dispute
  without first paying the tax in the
• 2. (TCO F) A business bad debt is deductible for
  tax purposes as a(n)
• 3. (TCO I) Under the cash method of tax
  accounting, tax deductions are generally taken
  when
• 4. (TCO A) Which of the following constitutes tax
  evasion?
• 5. (TCO C) Which of the following items is not
  subject to federal income tax?
• 6. (TCO B) Sam owes Bob 8,000. Bob cancels
  (forgives) the debt. The cancellation is not a
  gift, and Sam is bankrupt. Which of the following
  statements is correct concerning the impact of
  this transaction?
• 7. (TCO I) Johnny, a cash basis taxpayer, owns
  two rental properties. Based on the following
  information, compute the amount that he must
  include in his 2012 gross rental income.
• 8. (TCO F) Section 197's intangible assets, such
  as patents and trademarks, are amortized for tax
  purposes over
• 9. (TCO E) Explain the constructive receipt
  doctrine.
• 10. (TCO G) Answer the following questions
  concerning the sources of tax law.

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ACCT 553 Week 3 Homework ES (Quiz Set 2)

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• 1. A business bad debt is deductible for tax
  purposes as a(n)
• Your Answer
•                        
• 2. Which of the following items is not subject to
  federal income tax?
•  
•  3. Sam owes Bob 8,000. Bob cancels (forgives)
  the debt. The cancellation is not a gift and Sam
  is neither insolvent nor bankrupt. Which of the
  following statements is correct concerning the
  impact of this transaction?
•  
•            Neither Bob nor Sam has any taxable
  income from this transaction.                     
     
• 4. Jane purchased an annuity contract that pays
  her 800 per month. The annuity cost her 50,000
  and it has an expected return of 100,000. How
  much of each monthly annuity payment is
  includible in Jane's gross income?
•                        
• 5.  Which of the following is not considered
  "constructive receipt" of income?
•            

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ACCT 553 Week 3 Homework

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• Chapter 7
• 1. In your "own" words, please describe what a
  "Suspended Loss" is, how it is generated and when
  it is becomes deductible. (5 pts)
• 2. Please describe "Active Participation" as it
  relates to a taxpayer's involvement in an
  investment in Real Estate. (5 pts).
• Chapter 8
• 3. Macy had a lot of medical expenses this year
  that were not covered by her insurance (either
  due to a deductible, co-insurance, or co-pay).
  Her un-reimbursed qualifying medical expenses
  total 8,356 and her AGI for 2013 is 45,000.
  Assuming she will itemize on her 2013 tax return,
  how much of her medical expenses will she be able
  to deduct? (5 pts)
• 4. Heather Terry have a mortgage on their
  primary residence of 750,000 and a mortgage on
  their vacation home of 410,000. In 2013, they
  incurred 46,400 of mortgage interest expense.
  How much, if any, of that interest is deductible
  on Schedule A? (5 pts)

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ACCT 553 Week 4 Homework

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• Chapter 14
• 1. Please describe the concept of "double
  taxation" and discuss which entity(ies) are
  subject to this type of taxation. (5 pts)
• 2. What type of taxpayers are considered
  "eligible" taxpayers with regard to special
  ordinary loss treatment of IRC Section 1244
  stock? (5 pts.)
• 3. Please describe how the treatment of capital
  gains(losses) differ for a C Corporation as
  compared to an Individual. ( 5 pts.)
• 4. Please describe the concept of "Depreciation
  recapture". ( 5 pts.)
•  

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ACCT 553 Week 4 You Decide

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• Jane Smith Case
•  
• How is the 300,000 treated for purposes of
  federal tax income?
•  
• Jane Smith Tax Issues
•  
• (a) What are the different tax consequences
  between paying down the mortgage debt and
  assuming a new mortgage debt for federal income
  tax purposes?
•  
• (b) Should John and Jane file separate or joint
  tax returns?

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ACCT 553 Week 5 Homework

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• Chapter 14
• 1. Please explain how Charitable Contributions
  come into play in determining "Corporate" taxable
  income. (5 pts)
• 2. What happens to a loss on the Corporate Tax
  Return (Form 1120)? Does it pass through to the
  shareholders? Is it available for future or past
  periods? Please explain in detail. (5 pts.)
• 3. Please describe the purpose of Sch3edules M-1
  and M-3. When is a Schedule M-3 required in lieu
  of a Schedule M-1. (5 pts.)
• Chapter 17
• 4. Please define and differentiate a Spin-off,
  Split-off, and Split-up. ( 5 pts.)

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ACCT 553 Week 5 Quiz

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• 1. (TCO E) For federal tax purposes, royalty
  income not derived in the ordinary course of a
  business is classified as
• 2. (TCO F) When comparing corporate and
  individual taxation, the following statements are
  true, except
• 3. (TCO H) Al and Amy file a joint return for the
  2012 tax year. Their adjusted gross income is
  80,000. They had a net investment income of
  8,000. In 2012, they had the following interest
  expenses
• Personal credit card interest 4,000Home
  mortgage interest 8,000Investment interest (on
  loans used to buy stocks) 10,000
• 4. (TCO B) Charitable contribution deductions for
  capital gains property made by individuals
  without a reduction for long-term capital gains
  to public charities are limited to
• 5. (TCO A) The following taxes were paid by Tim
• Real estate taxes on his home 2,000State
  income taxes 900State gasoline tax (personal
  use of automobile) 150
• 6. (TCO F) Hoover, Inc. had gross receipts from
  operations of 230,000, operating and other
  expenses of 310,000, and dividends received from
  a 45 percent-owned domestic corporation of
  120,000. Hoover's tax position for the year is

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ACCT 553 Week 6 Assignment You Decide

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• ACCT 553 Week 6 You Decide
• Mark, and John Case
• Part I Discuss the various forms of organization
  that are available to Penelope, Mark, and John
• Part II Make your recommendation as to what form
  of organization you believe will be best, and be
  sure to explain the reasoning for your choice.
• Part III Discuss the tax consequences of
  contributing cash, property, and/or services to
  the new entity.

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ACCT 553 Week 6 Homework

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• Miyasyke,Inc.,acalendaryearScorporation,hasfiveequ
  alshareholdersattheendofthetaxyear.Miyasykehad
• 75,000oftaxableincome.Miyasykemadedistributionsto
  itsshareholdersof32,000each,foratotalof160,000.
  Eachshareholder'sbasisin theScorporationis100,00
  0atthebeginningofthetaxyear.Whatamountfrom
  Miyasykeshould be includedin eachshareholder'sgros
  sincome?
•  
• Asoleproprietorshipincorporatedon
  January1andelectedScorporationstatus.Theownercontr
  ibutedthefollowing assetsto theScorporation
• Twoyearslater,thecorporationsoldthemachineryfor4,
  000 andthebuildingfor110,000.Themachineryhad
  accumulateddepreciationof2,000,andthebuildinghada
  ccumulateddepreciationof1,000.Whatisthebuilt-in
  gainrecognizedon thesale?
• Which ofthefollowingitemsmustbe separatelystated
  on Form1120S,U.S.IncomeTaxReturnforan S
  Corporation, ScheduleK-1?
• Forwhichofthefollowingentitiesistheowner'sbasisinc
  reasedbytheowner'sshareofprofitsanddecreasedbythe
  owner'sshareoflosses,butisnotaffectedbytheentity's
  bankloanincreasesordecreases?
• Frankisa1/3shareholderin an Scorporation.Atthebegi
  nningoftheyear,Frank'sbasisin hisScorporationstock
  was10,000.Frank'sshareoftheScorporationitemsofin
  comeincluded35,000ofincomefromoperations,1,000
  ofcharitablecontributions, and1,000
  ofcapitalgains.Duringtheyear,Frankalsocontributed
  15,000ofadditional capitalandreceiveda3,000
  distributionfromtheScorporation.WhatisFrank'sbasis
  attheendofthetaxyear?

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ACCT 553 Week 7 Homework

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• Chapters 10-11-12
• 1. Please explain the distinction between a
  "realized" gain and a "recognized" gain. (5 pts)
• 2.  Are there any limits to the deductibility of
  losses on sales and exchanges between related
  parties?  What code section defines this
  limitation? (5 pts.)
• 3.  What is the basis of property received (i.e.
  new property) in a like-kind exchange?  What is
  the holding period for the new asset? (5 pts.)
• 4.   David purchased stock in Zoll Corporation in
  1985 for 6,000.  On April 16, 2013 he gifted the
  stock to his daughter Susan at the time of the
  gift, the Zoll stock was valued at 250,000. 
  Susan sold the stock the next month for
  252,000.  What is Susan's gain or loss and what
  is the character of the gain or loss? ( 5 pts.)
•