Alpesh Jorgensen High Tech Incorporated is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accruedand deducted the following bonuses for certain employees for financial accounting purposes.•$58,800 for Ken.•$44,100 for Jayne.•$29,400 for Jill.$14,700 for Justin.How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios?Note: Leave no answer blank. Enter zero if applicable.b. Jorgensen paid the bonuses to the employees on April 1 of year 2.× Answer is complete but not entirely correct.Deductible accrued bonuses Year 1$ 147,000 ×

Deductible accrued bonuses Year 1 = 0.00 Description Deductible in Y1 Deductible in Y2 Ken…

Answered: Jorgensen High Tech Incorporated is a…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 36P

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How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Tray is a full-time employee of the corporation and receives a salary of 60,000 per year. He also receives a bonus equal to 10% of all collections from diems he serviced during the year. Determine the tax consequences of the following events to the corporation and to Troy: a. On December 31, 2019, Troy was visiting a customer. The customer gave Troy a 10,000 check payable to the corporation for appraisal services Troy performed during 2019. Troy did not deliver the check to the corporation until January 2020. b. The facts are the same as in part (a), except that the corporation is an accrual basis taxpayer and Troy deposited the check on December 31, but the bank did not add the deposit to the corporations account until January 2020. c. The facts are the same as in part (a), except that the customer told Troy to hold the check until January 2020 when the customer could make a bank deposit that would cover the check.
Davis, Inc. paid wages to its employees during the year as follows: a. How much of the total payroll is exempt from the FICA rate of 8%? b. How much of the total payroll is exempt from federal and state unemployment taxes? c. How much of the total payroll is exempt from federal income tax withholding?
In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify. Ariel has worked for Sander Corporation for 30 years. Sander has a pension plan in which it matches employee contributions by up to 5 percent of the employees salary. Ariel, who is single, retires during the current year when she is 66 years old. Her pension plan contains payments and earnings of 300,000, half of which are attributable to payments made by Ariel and half attributable to payments made by Sander. Under the plan, Ariel is to receive 2,000 per month until she dies.
A taxpayer operating a small business applied for and received the Main Street Small Business Tax Credit from the CDTFA. During the year, they increased their net employee count for full-time equivalent (FTE) employees to 102 over their average monthly FTE values. What is the amount of the credit that they can claim on their return for this massive employee increase? (Do not consider how much can be used, only how much they are eligible for given the circumstances. None of the employee wages are used in the consideration of any other credits.
Stacy Lee Parker is an employee in the exempt category with regard to uniform. Uniform is provided to her by her employer at a value of $20,000 per annum. What tax is to be paid by Stacy on this benefit for the year of assessment 2021? (Ignore laundering of the uniform). $0 $1188.30 $1666.65 $3565.25
True or False Points paid in connection with the purchase of a second residence may be deducted in the year paid. Answer: Points paid to refinance a mortgage on a principal residence are fully deductible in the year paid. Answer: If an employee incurs travel expenditures and is fully reimbursed by the employer, neither the reimbursement nor the deduction is reported on the employeeʹs tax return if reporting is pursuant to an accountable plan. Answer: answer all 3
XYZ, Inc. is an accrual basis taxpayer with a calendar year end. XYZ received $72,000 cash on August 1, Year 1 from a tenant for a 24-month lease on a warehouse owned by XYZ. How much rental revenue from this transaction will XYZ recognize on its Year 1 tax return? How much rental revenue will XYZ recognize from this transaction on its income statement for Year 1 prepared in accordance with GAAP? How much rental revenue from this transaction will XYZ recognize on its Year 2 tax return? How much rental revenue will XYZ recognize from this transaction on its income statement for Year 2 prepared in accordance with GAAP? Is the Year 1 book-to-tax difference favorable or unfavorable?

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