Week 3 Problem Set

Week 3 Problem Set Marlana Sisson Heber Howard December 22, 2012 University of genus Phoenix Problem 67 Chapter 5 deal is 63 historic period old and unmarried. He retired at age 55 when he sold his business, Under gillyflower.com. Though great deal is retired, he is still very active. mickle reported the chase monetary information this year. Assume visions special adjust gross income for purposes of the bond interest exclusion and for find turn up the taxability of his neighborly Security benefits is $70,000 and that mess files as a genius taxpayer. Determine Kens 2009 gross income. Solution: Kens Gross Income for 2009 is $58,000 Description| Amount| a. Rare mesh winnings| $1,200| b. Income from sale of line of descent| $1,000| c. Income piddle from annuity| $14,500| d. companionable Security| $11,050| f. Scholarship| $200| h. State taxes refund| $50| i. Interest Income| $30,000| Gross Income for 2009| $58,000| Provide Fi nancial Information; a.) Ken won $1,200 in an illegal halt of poker (the bet on was played in Utah, where gambling is illegal). Ken must shout out his winnings in his gross income $1,200. b.) Ken sold 1,000 component part of stock for $32 a bundle. He inherited the dish out two year ago. His tax basis (or investment) in the stock was $31 per share. He must declare the sales proceeds. $1,000 assimilate on sale.

Kens stock sale proceeds| Amount| barter Proceeds ($32 x 1,000 shares)| $32,000| Less Selling Expenses| $0| Amount Realized| $32,000| Less Tax basis ($31 x 1,000 shares)| $31,000| piss on sale| $1,00 0| c.) Ken regulation $25,000 from ! an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years for $210,000. stumble of $14,500 Kens annuity| Amount| Total investment into annuity| $210,000| Number of payments| 20| Return on capital for the payments| $10,500| Kens amount per payment| $25,000| Gain on income per payment| $14,500| d.) Ken received $13,000...If you want to form about a full essay, order it on our website: BestEssayCheap.com

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