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Arnold has several adjustments to income he plans to claim on his tax return. Which of the following items will be decreased by the
adjustments?
Select one:
a.
Deductions
b.
Total income
Correct. Adjustments decrease a taxpayer’s total income to arrive at the adjusted gross income (AGI).
c.
Taxable wages
d.
Federal tax withholding
All the following are adjustments to income except:
Select one:
a.
Student loan interest deduction
b.
Penalty on early withdrawal on
an IRA
Correct. An early withdrawal penalty on an IRA is an additional tax, not an adjustment
to income.
c.
IRA deduction
d.
Moving expenses for members of the Armed Forces
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Each the following is a type of IRA except:
Select one:
a.
Traditional IRA
b.
403(b) plan
Correct. The 403(b) plan is an elective deferral retirement plan, not an IRA.
c.
SIMPLE IRA
d.
Roth IRA
All the following are considered taxable compensation for purposes of an IRA except:
Select one:
a.
Self-employment income
b.
Wages
c.
Professional fees
d.
Interest
income
Correct. Interest income is not earned income, and therefore is not taxable compensation for purposes of
an IRA.
Alan (age 45) and Trisha (age 31) are Married Filing Jointly. Evaluate their income to determine how much they can contribute to an
IRA
Alan’s wages:
$ 6,000
Joint interest income:
$15,900
Stock proceeds:
$36,000
Select one:
a.
$ 0
b.
$12,000 – Jointly
c.
$12,000 – Each
d.
$
6,000 –
Jointly
Correct. The taxpayer’s IRA contribution is limited to $6,000 per person or the total taxable compensation,
whichever may be less. The taxable compensation of $6,000 is less than $6,000 per person.
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Billy (age 35) and LeeAnn (age 32) are MFJ and have decided to contribute $7,000 to their IRAs. LeeAnn’s wages are $50,000 per
year. She is not covered by a pension plan at work. Billy is a stay-at-home dad. How much should they each contribute to their
respective IRAs?
Select one:
a.
They cannot contribute $7,000. LeeAnn is the only one with income; she can contribute $6,000. Billy is unable to contribute to his IRA
because he is not employed.
b.
They must split it 50/50 between their respective IRA accounts.
c.
Since LeeAnn works, she must contribute a full $6,000 to her IRA, and Billy will contribute the remaining $1,000 to his IRA.
d.
They can split the
contribution in any manner
they choose as long as
neither contributes more
than $6,000 to their
respective IRAs.
Correct. The maximum amount a single taxpayer (under age 50) can contribute is the
smaller of $6,000 or their taxable compensation. If the taxpayers are married, and only
one spouse has taxable compensation, the maximum contribution the couple can make is
$12,000 (if both under age 50). The maximum which can be contributed to one account is
$6,000.
Jack and Jane, Married Filing Jointly taxpayers, do not have a pension plan at work. At what modified adjusted gross income level is
their income too high to be eligible to make a Roth IRA contribution in 2021?
Select one:
a.
$140,000
b.
$198,000
c.
$ 10,000
d.
$208,000
Correct. A Married Filing Jointly taxpayer cannot contribute to a Roth IRA in 2021 if their MAGI is $208,000 or
more.
Brett, age 50, took an early IRA distribution to buy a sailboat. He receives Form 1099-R with distribution code 1 in box 7. Where
should Brett report the required early withdrawal penalty?
Select one:
a.
The IRA deduction worksheet
b.
Form 1099-R
c.
Schedule 2 (Form 1040), line 8
d.
Schedule 1 (Form 1040),
line 18
This answer is incorrect. Schedule 1 (Form 1040), line 18 is used to report the penalty on early
withdrawal of savings.
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O 23300.
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were:
O 95220 equivalent units.
O 135300 equivalent units.
O 70200 equivalent units.
O 85200 equivalent units.
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The last department in a production process shows the following information at the end of the period:
rences
borations
Units
Beginning Work in Process 25000
Started into Production
PLUS
ort
263000
Ending Work in Process
49200
Central
How many units have been transferred out to finished goods during the period?
288000.
O 263000.
O312200.
O 238000.
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A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual value of $340,000 and an estimated useful life of 10 years.
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g 2021
Cheyenne Corp., a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2019.
Revenues during 2019-camping fees
$190,400
Notes payable
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1-4
Revenues during 2019-general store
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Expenses during 2019
204,000
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Supplies on hand
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Cash on hand
27,200
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27,200
Original cost of equipment
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Exercise 9-12 a-b (Part Level Submission)
Oriole Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at
December 31.
Nov. 1
Loaned $23,50Chcash to Manny Lopez on a 12-month, 12% note.
Dec. 11
Sold goods to Ralph Kremer, Inc., receiving a $61,200, 90-day, 10% note.
16
Received a $97,200, 180 day, 8% note in exchange for Joe Fernetti's outstanding accounts receivable.
31
Accrued interest revenue on all notes receivable.
(a)
Your answer is correct.
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
O $4.70.
$12.82.
O $30.33
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Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to
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16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock.
31 Accrued interest revenue on all notes receivable.
Journalize the transactions for Cullumber Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered.…
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Sheffield Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become
uncollectible. Accounts receivable are $430,800 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,864.
(a) Prepare the adjusting journal entry to record bad debt expense for the year.
(b) If the allowance for doubtful accounts had a debit balance of $887 instead of a credit balance of $2,864, prepare the adjusting journal entry for
bad debt expense.
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