ACC 456 Week 5 Summary Of Learning Updated

ACC 456 Week 5 Practice Problem (10-5, 11-37, 11-41, 12-36) Updated

Complete the following problem in Chapter 10:
I:10-5
Complete the following problems in Chapter 11:
I:11-37
I:11-41
Complete the following problems in Chapter 12:
I:12-36
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I:10-5
Robert is a sole proprietor who uses the calendar year as his tax year. On July 20, 2015 he acquired and placed in service a business machine, a 7-year asset, for $50,000. No other property was acquired in 2015.
·         a.What is the amount of depreciation allowed in 2015 and 2016 if Sec. 179 depreciation (first-year expense election) was not elected?
·         b.What is the amount of depreciation allowed in 2015 and 2016 if Sec. 179 was elected?
I:11-37
Allowable Taxable Year. For each of the following cases, indicate whether the taxpayer has selected an allowable tax year in an initial year. If the year selected is not acceptable, indicate what an acceptable year would be.
·         a.A corporation selects a January 15 year-end.
·         b.A corporation selects a March 31 year-end.
·         c.A corporation selects a year that ends on the last Friday in March.
·         d.A partnership selects a year that ends on December 31 and has three equal partners whose years end on March 31, April 30, and June 30.
·         e.An S corporation selects a December 31 year-end.
I:11-41
Cash Basis Expenses. How much of the following expenses are currently deductible by a cash basis taxpayer?
·         a.Medical prescriptions costing $20 paid by credit card (medical expenses already exceed the 10% of AGI floor).
·         b.Prepaid interest (not related to points) of $200 on a residential loan.
·         c.Taxpayer borrows $300 from the bank to make a charitable contribution. The $300 is paid to the charitable organization before the end of the tax year.
·         d.Taxpayer gives a note to his church indicating an intent to contribute $300.
·         e.A calendar-year individual mails a check for $200 to his church on December 31. The check is postmarked December 31 and clears the bank on January 4.
I:12-36
Like-Kind Exchange: Related Parties. Bob owns a duplex used as rental property. The duplex has a basis of $86,000 and $300,000 FMV. He transfers the duplex to Cindy, his sister, in exchange for a triplex that she owns. The triplex has a basis of $279,000 and a $300,000 FMV. Two months after the exchange, Cindy sells the duplex to a business associate for $312,000. Determine:
·         a.Bob’s realized and recognized gain on the exchange.
·         b.Cindy’s realized and recognized gain on the exchange.

ACC 456 Week 5 Key Points Updated

Write a 350-to 700-word paper.
Explain your perspective on tax planning.
Define and differentiate tax avoidance and tax evasion.
Click the Assignment Files tab to submit your assignment as a Microsoft® Word document.