please answer all parts within 30 minutes... 1. Donnie is an employee of Holt Corporation. Thecorporation regularly mails payroll checks toemployees to arrive on, or before the last day of eachmonth. Donnie's check arrives in the mail at his houseon December 31, 2022. However, Donnie wasvacationing in Cancun and did not return untilJanuary 8, 2023. Donnie deposited the check into hisaccount the next day. Which concept is primarilyresponsible for the tax treatment?2. Steven and Mark are brothers. Steven sells land toMark that cost him $33,000 for $22,000. Steven is notallowed to deduct the $11,000 loss on the sale. Whatconcept is primarily responsible for this treatment?3. Ted sells 200 shares of common stock for $2,000.The stock cost Ted $500 several years ago. Ted'srealized gain from the sale is only $1,500. Whatconcept is primarily responsible for this treatment?

As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Answered: 1. Donnie is an employee of Holt…

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 48P

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During the past week, one of your newly employed payroll associates dropped into your office to ask severalquestions regarding wage reporting for federal incomeand social security tax purposes. If you were the payrollsupervisor, how would you answer each of the followingquestions raised by your associate?1. I just noticed that the social security number is wrongon three of the employees’ W-2 forms. How do I goabout correcting the forms? Will the employees bepenalized for filing incorrect forms?2. Eileen Huang informed me today that we hadwithheld too much Medicare tax from her pay lastyear. She is right! What forms do I use to make thecorrection?3. You asked me last week to locate one of our formeremployees, Warren Bucks. I can’t seem to track himdown. What should I do with his Form W-2?4. Is it okay to use titles like “M.D.” and “Esq.” when Ikeyboard data in the W-2 forms?
Which of the following is not considered “constructive receipt” income in 2020? A. Andrew Mason was informed that his check for services rendered was available on December 15, 2020, but he waited until January 16, 2021, to pick up the check. B. A payment on a sale of real property placed in escrow on December 16, 2020, but not received by Benjamin Miles until January 12, 2021, when the transaction was closed. c. Earned income of Candice Cord was received by her agent on December 30, 2020, but was not received by her until January 5, 2021. d. Daniel Dryer received a check on December 30, 2020, for services rendered, but was unable to make a deposit until January 5, 2021. e. Ellen Elks received stock on December 30, 2020, for services rendered, but was unable to find a buyer for the stock until January 20, 2021.
John Matthew filed a fraudulent income tax return for the year 2021 on April 11, 2022. TheBureau of Internal Revenue (BIR) discovered the fraud on February 20, 2023. The last day for theBIR to collect or to send an assessment notice is?
Lawyer is a cash basis taxpayer. The client calls Lawyer at 4.00 PM, December 31, 2022, saying she has Lawyer’s fee statement, has made out a check in full payment and, as she is about to leave for Europe, and she will leave the check with a desk clerk at Client’s apartment. Lawyer is ill, has no one to send to pick up the check, and he finally arranges to pick it up on January 2, 2023. In what year will the income from this transaction be recognized for tax purposes under cash method? Cite specific tax code/tax law in your response.
Determine the effects of the following on a cash basis taxpayer’s gross income for 2020 and 2021: a) On the morning of December 31, 2020, the taxpayer received a $1,500 check from a customer. The taxpayer did not cash the check until January 3, 2021. b)The same as part (a), except that the customer asked the taxpayer not to cash the check until January 3, 2021, after the customer’s salary check could be deposited. c) The same as part (a), except that the check was not received until after the bank had closed on December 31, 2020.
In order to improve the cash flow of the company, Neal Emerald decided to postpone depositing all employment taxes a few months ago. He told his sales manager, “I’ll pay up before the IRS catches up with me.” What risks does Emerald face by not upholding his responsibility for the collection and payment of employment taxes?
Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-a (Algo) a. Paylate Corporation wrote the check and put it in Clyde’s office mail slot on December 30 of this year, but Clyde did not bother to stop by the office to pick it up until after year-end. Amount to be included in gross income - _______
Record the journal entries for each of the following payroll transactions. If an amount box does not require, leave it blank. Apr. 2 Paid $600 and $310 cash to a federal depository for FICA Social Security and FICA Medicare, respectively. Apr. 4 Paid accumulated employee salaries of $16,220. Apr. 11 Issued checks in the amounts of $480 for federal income tax and $300 for state income tax to an IRS-approved bank. Apr. 14 Paid cash to health insurance carrier for total outstanding health insurance liability of $700. Apr. 22 Remitted cash payments for FUTA and SUTA to federal and state unemployment agencies in the amounts of $130 and $250, respectively. Apr. 2 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 Apr. 4 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 Apr. 11 fill in the blank 17 fill in the blank 18 fill in the blank 20…
For the corporation I need to record the payroll entries to accrue the payroll at the end of August for each of the following; Wage expense related to the three employees on August 31. Employer payroll taxes related to the three employees on August 31. Journalize the Corporations Transactions and adjusted enteries at the same time for August 2024 August 1/ Paid $836 cash for office supplies. August 2/ Purchased merchandise on account for $675 August 4/ Collected $5,655 cash from customers on account. August 7/ Received a $560 invoice for radio advertising on account. August 8/ Established a petty cash tund for $ /30. August 11/ Received $6,940 cash for performing coaching services. August 15/ Paid previous month's salaries August 17/ Collected $3,900 in advance for coaching services to be performed later. August 20/ Completed a large coaching job and billed the customer for $6,865 August 22/ Received the electric bill and cell phone bill for the business totaling $965. (Credit…
Hopper works as an independent contractor (self-employed sole proprietor) for local businesses on weekends, and he often provides services in exchange for property. All of the following happened during 2019: Hopper provided security services in exchange for $1,375 of car repair services, $2,500 of groceries, and cash of $5,250. The cash was mailed to Hopper in the form of a check on December 15, 2019. Hopper, however, was out of town for the entire month of December. When he checked his mail on January 1, 2020, the check was there. Hopper also received a gift card in exchange for services he provided that could only be used for $1,000 work of clothing at a local mall shop. During 2019, Hopper only redeemed $250 worth of clothing at a local mall shop. Hopper has a total of $6,300 worth of legitimate business expenses during 2019, none of which were considered Cost of Goods Sold. Determine Hopper’s gross income for 2019 assuming that he uses the cash basis of accounting.
Dog Alexi files her tax return 56 days after the due date. Along with the return, she remits a check for $18,900, which is the balance of the tax she owes. The failure to file is not is attributable to fraud. Assume 30 days in a month. If required, round your answers to nearest whole value. Disregarding any interest liabilities, Alexi’s total penalties are as follows: Failure to pay penalty: $.Failure to file penalty: $.
During 2020, Jackie sent her brother Junnie $2,500 via a telegraphic transfer through El Banco Prieto. The bank’s remittance clerk made a mistake and credited Junnie with $250,000 which he promptly withdrew. The bank demanded the return of the mistakenly credited excess, but Junnie refused to do so. The BIR entered the picture and investigated Junnie. Would the BIR be correct if it determines that he earned a taxable income under the facts? No, it was not her fault that the funds in excess of $2,500 were credited to him. Yes, income is a taxable income regardless of the source No, he had no income because he had no right to the mistakenly credited funds. No, the funds in excess of $2,500 were in effect donated to her.

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