tax project

there are 5 questions in the excel

Question 37 – Chapter 4
In 2022, Wright’s, Inc., signs a contract to design and deliver 100 laptop computers customized to perform certain functions
be paid $300 per computer but must deliver all 100 laptops to fulfill the contract. At the end of 2022, Wright’s has complete
recognizes $22,500 (75 × $300) in revenues in its audited financial statements.
1. Assuming Wright’s is an accrual basis taxpayer, how much gross income must it recognize in its 2022 taxable income?
2. (How) would your answer change if the contract allowed the customer to cancel the contract prior to delivery of the 100 c
for any computers completed prior to cancellation?
Points 10
omized to perform certain functions required by a customer. Wright’s will
e end of 2022, Wright’s has completed and delivered 75 laptops and
gnize in its 2022 taxable income?
contract prior to delivery of the 100 computers but required them to pay
Chapter 6 – question 47
Adelene, who lives in a winter resort area, rented her personal residence for 14 days while she was visiting
Brussels. Rent income was $5,000. Related expenses for the year were as follows:
Real property taxes
$ 3,800
Mortgage interest
7.500
Utilities
3.700
Insurance
2.500
Repairs
2.100
Depreciation
15.000
Determine the effect on Adelene’s AGI.
e she was visiting
Points 10
Chapter 7 – Question 35
Abby, a single taxpayer, purchased 10,000 shares of § 1244 stock several years ago at a cost of $20 per share. In November o
year, Abby received an offer to sell the stock for $12 per share. She has the option of either selling all of the stock now or sel
the stock now and half of the stock in January of next year. Abby will receive a salary of $80,000 for the current year and $90
year. Abby will have long-term capital gains of $8,000 for the current year and $10,000 next year. If Abby’s goal is to minimi
for the two years, determine whether she should sell all of her stock this year or half of her stock this year and half next yea
cost of $20 per share. In November of the current
her selling all of the stock now or selling half of
$80,000 for the current year and $90,000 next
next year. If Abby’s goal is to minimize her AGI
her stock this year and half next year.
Points 10
Chapter 10 – question 39
Linda, who files as a single taxpayer, had AGI of $280,000 for 2022. She incurred the following expenses and losses during th
Medical expenses (before the 7.5%-of-AGI
limitation)
State and local income taxes
$33.000
4.800
State sales tax
1.300
Real estate taxes
6.000
Home mortgage interest
5.000
Automobile loan interest
750
Credit card interest
1.000
Charitable contributions
7.000
Casualty loss (before the 10%-of-AGI limitation but
after the $100 floor; not in a Federally declared
disaster area)
Unreimbursed employee business expenses
34.000
Calculate Linda’s allowable itemized deductions for
the year.
7.600
Points 10
owing expenses and losses during the year:
Chapter 11 – question 38
A number of years ago, Kayla acquired an interest in a partnership in which she is not a material participant. Kayla’s basis in
partnership interest at the beginning of 2021 is $40,000. Kayla’s share of the partnership loss is $35,000 in 2021, and her sh
partnership income is $15,000 in 2022. How much may Kayla deduct in 2021 and 2022, assuming that she owns no other pa
activities?
Points 10
material participant. Kayla’s basis in her
ip loss is $35,000 in 2021, and her share of the
assuming that she owns no other passive