Bruce, who is single, had the following items for the current year:
? Salary of $80,000.
? Gain of $20,000 on the sale of § 1244 stock acquired two years earlier.
? Loss of $75,000 on the sale of § 1244 stock acquired three years earlier.
?
Worthless stock of $15,000 . The stock was acquired on February 1 of the prior year and became worthless on January 15 of the current
year.
Determine Bruce's AGI for the current year.
a. $27,000
b. $38,000
c. $42,000
d. $47,000
e. None of the above
a
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Lois and Benjamin own a chalet in New Mexico and rented it for 12 days for $6,000. The rest of the year, the chalet was used by them and their friends and family. What is the proper tax treatment of the $6,000 income?
A. none of the rental income needs to be reported as part of gross income. B. the amount should be reported on Schedule E. C. the amount should be reported as other income. D. the amount should be reported on Schedule C.
List and discuss the four stages in the design of a cost management system
The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $13,000 Social security and Medicare Taxes withheld 975 Income Taxes withheld 2,600 Retirement Savings 500 Salaries subject to federal and state unemployment taxes of 6.2 percent 4,000 The entry to record the accrual of employer's payroll taxes would include a
A) debit to Payroll Taxes Expense for $1,223 B) credit to Social Security and Medicare Tax Payable for $1,950 C) debit to Payroll Taxes Expense for $248 D) Debit to Payroll Tax Expense for $975
The acid-test ratio differs from the current ratio in that:
A. The acid-test ratio measures profitability and the current ratio does not. B. Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio. C. The acid-test ratio excludes short-term investments from the calculation. D. Liabilities are divided by current assets. E. The acid-test ratio is a measure of liquidity but the current ratio is not.