Chapter 4, Problem 53P

On December 27, 2019, Roberta purchased four tickets to a charity ball sponsoredby the city of San Diego for the benefit of underprivileged children.Each ticket cost $200 and had a fair market value of $35. On the same day as thepurchase, Roberta gave the tickets to the minister of her church for personal use byhis family. At the time of the gift of the tickets, Roberta pledged $4,000 to the buildingfund of her church. The pledge was satisfied by a check dated December 31,2019, but not mailed until January 3, 2020.a. Presuming that Roberta is a cash basis and calendar year taxpayer, how muchcan she deduct as a charitable contribution for 2019?b. Would the amount of the deduction be any different if Roberta was an accrualbasis taxpayer? Explain.

Determine the correct value for each of the following questions: 1. Assume that an individual gives cash to the following parties: $25,000 to a charitable organization, $15,000 to her grandson for his college tuition, $8,000 to her granddaughter to buy a car, and $14,000 to her spouse for a trip to France. What amount of gifts is considered taxable? 2. Assume that an individual has given $25,000 to each of his four grandchildren for each of the past three years and $50,000 to a charitable organization. If he wants to make a single gift to each of his four grandchildren, what would the maximum gift per grandchild be in order to avoid all gift tax? 3. Your client made the following gifts last year: $200,000 to each of her three children, $50,000 to her brother, and $10,000 to each of her eight grandchildren. Prior to that, your client made a single gift of $50,000 to each of her two nieces. If she made a gift of $5,348,000 to her sister in the current year, what amount of gift tax would…

While vacationing in Florida in November, Sally was seriously injured in an automobile accident (she died several days later). How are the following transactions handled for tax purposes?a. Bruce, Sally’s son and executor, incurred $6,200 in travel expenses in flying to Florida, retrieving the body, and returning it to Frankfort, Kentucky, for burial.b. Early in the year, Sally had pledged $50,000 to the building fund of her church. Bruce paid this pledge from the assets of the estate.c. Prior to her death, Sally had promised to give her nephew, Gary, $20,000 when he passed the bar exam. Gary passed the exam late in the year, and Bruce kept Sally’s promise by paying him $20,000 from estate assets.d. At the scene of the accident and before the ambulance arrived, someone took Sally’s jewelry (i.e., Rolex watch and wedding ring) and money. The property (valued at $33,000) was not insured and was never recovered.e. As a result of the accident, Sally’s auto was totally destroyed. The auto…

Sherry donates $5,000 to the university in exchange for the right to purchase tickets for the upcoming football season.  How should she treat the contributon.

Shuan is a huge college football fan. In the past, he has always bought football tickets on the street from ticket scalpers. This year he decided to join the university’s ticket program, which require a $2,000 contribution to the university for the “right” to purchase tickets. Shaun will then pay $400 per season ticket. He understands that the price paid for the season tickets is not tax deductible as a charitable contribution. However, contribution to a university is typically tax deductible. use an available tax service to determine how much, if any, of Shaun’s $2,000 contribution for the right to purchase ticket is tax deductible. Write a memo communicating the results of your research.

When Barry’s grandmother passed away, she gave Barry a diamond ring that was worth $6,000 at the time of death. Barry’s grandmother had purchased the ring for $5,400. What is Barry’s basis in the ring if he sells it for $7,000? What if he sells it for $5,000? What if he sells it for $5,800?

On January 1, 2018, Logan’s wife, Irma, died while giving birth to a child, but the child survived.  Logan took care of the child bringing him wherever he was assigned.  If Logan is a resident citizen, how much personal and additional exemptions could Logan avail of when he files his Income tax return for 2018 income? P25,000 P50,000 none P75,000 A taxpayer engaged in manufacturing operations bought a machine with a salvage value of P50,000 and estimated useful life of 5 years for P650,000. What is the carrying value of the machine after 2 years of operation under the sum-of-the-Year-Digit Method? P290,000 P240,000 P190,000 P250,000 Assuming Ana is a VAT-registered taxpayer, how much is her total income tax expense assuming she opted to be taxed at 8% income tax rate? P321,500 P342,500 P351,500 P358,000