Connect Access Card for Advanced Financial Accounting
12th Edition
ISBN: 9781260165098
Author: Christensen, Theodore E., COTTRELL, David
Publisher: McGraw-Hill Education
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Chapter 16, Problem 16.11.11AE
To determine
Concept introduction:
Personal financial statement:Each partner is required to furnish personal financial statements to determine each partner’s personal solvency. A personal financial statement consists of, a statement of financial condition or a personal balance, sheet, and statement of change in net worth, or personal income statement. ASC 274 gives guidelines for the preparation of personal financial statements.
To choose: Correct answer to determine the amount to be reported as an investment in life insurance at December 31, 20X3
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Interview Notes
• Luther, age 54, and Lexi, age 56, are married and file a joint return.
Lexi has family coverage through her High Deductible Health Plan (HDHP) at work. In 2023, Lexi contributed $2,350 to her
Health Savings Account (HSA). Luther made contributions totaling $3,000 to his HSA in 2023.
Luther's Form 1099-SA shows a distribution from his HSA of $3,000. They have receipts showing they paid:
o $300 for new eyeglasses for Lexi,
o $2,200 in copays for doctor visits and tests,
o $400 for over the counter medication, and
●
o $100 for Personal Protective Equipment (PPE) to prevent the spread of COVID-19 and home COVID-19 tests
• In April 2023, Luther was diagnosed by his physician with a terminal illness. In May, Luther and Lexi decided to take a luxury
vacation before his health deteriorated. They used a distribution from Luther's IRA to pay for it. They received a Form 1099-R
showing $15,000 in Box 1, and code 1 in Box 7.
Lexi sold a used handbag on an online marketplace. She…
Interview Notes
• Luther and Lexi are married and file a joint return.
Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of
2020. His monthly premiums are $300.
• In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax
through his employer's cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA
from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W.
• Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical
expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical.
• Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they
donated $250 by check to their local food bank. The food bank is a qualified organization and provided…
Interview Notes
Herb and Alice are married and file a joint return. Herb is 74 years old and Alice turns 72 in February 2023. Neither are blind.
•
•
.
Alice is confused about the Required Minimum Distribution rules, and wants to know when she should take her first
distribution from her IRA.
Both Herb and Alice are retired. Herb works part time as a greeter.
• Herb earned $12,000 in wages and has fully taxable pension income of $4,800. The couple also received Social Security
benefits of $46,000. They received no other income in 2023.
Herb and Alice's grandson, Stuart, lives with them while he attends the local university. Stuart is 20, a full-time student, and is
claimed as a dependent by his parents.
.
Herb, Alice and Stuart are U.S. citizens, lived in the United States all year, and have valid Social Security numbers.
1. What is Herb and Alice's standard deduction?
a. $27,700
Ob. $29,200
c. $29,550
d. $30,700
Chapter 16 Solutions
Connect Access Card for Advanced Financial Accounting
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11.1AECh. 16 - Prob. 16.11.2AECh. 16 - Prob. 16.11.3AECh. 16 - Prob. 16.11.4AECh. 16 - Prob. 16.11.5AECh. 16 - Prob. 16.11.6AECh. 16 - Prob. 16.11.7AECh. 16 - Prob. 16.11.8AECh. 16 - Prob. 16.11.9AECh. 16 - Prob. 16.11.10AECh. 16 - Prob. 16.11.11AECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
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