Posted on

Tax Questions Cristine’s boss gave her two tickets to the Justin Beaber concert Answer

Tax Questions Cristine’s boss gave her two tickets to the Justin Beaber concert Answer

Tax Questions Cristine’s boss gave her two tickets to the Justin Beaber concert Answer

41. Cristine’s boss gave her two tickets to the Justin Beaber concert because she met her sales quota. At the time Cristine received the two tickets, they had a face value of $100 each and were selling on eBay for $300 each (which equaled the fair market value of the tickets). On the date of the concert, the tickets were selling for $300 each. Cristine and her daughter (Jeanette) attended the concert. How much gross income should Cristine report as a result of the tickets?

a. $0
b. $200
c. $400
d. $600

42. Sagi was a professional soccer player before a career-ending injury caused by a grossly negligent driver. Sagi sued the driver and collected $1 million as compensation for lost estimated future income and $2 million for punitive damages. How much gross income should Sagi report as a result of the damages he received?

a. $0
b. $1 million
c. $2 million
d. $3 million

43. Which of the following is a deduction FROM AGI?

a. Ellice paid alimony to a former spouse
b. Pamela invested $3,000 in a Roth IRA
c. Stephanie paid real estate taxes levied by the county on her personal residence
d. Monica paid property taxes levied by the county on her car used exclusively for business

44. Compute the casualty loss on Amy’s uninsured rental property under the following facts:

Adjusted basis $100,000
FMV before the loss $75,000
FMV after the loss $0

a. N/A (we need to know Amy’s AGI to answer this question)
b. $100,000
c. $75,000
d. $25,000

45. Crucilena Corporation acquired new computer equipment on March 13, 2014, for $50,000. Crucilena did not elect immediate expensing under Section 179. Determine Crucilena’s cost recovery for 2014.

a. $50,000
b. $20,000
c. $10,000
d. $0

46. On August 5, 2014, Kathryn purchased a new office building for $5
million. On October 3, 2014, she began to rent out office space in the building. What is Kathryn’s cost recovery for 2014?

a. $0
b. $26,750
c. $128,200
d. $5,000,000

47. Assume the same facts as in the previous problem. Assume further that Kathryn sells the office building on July 12, 2018. What is Kathryn’s cost recovery for 2018?

a. $0
b. $69,442
c. $128,200
d. $1,000,000

48. Jeff performs services for Nova Corporation. In determining whether Jeff is an employee or an independent contractor, which factor is MOST likely to suggest that Jeff is an employee?

a. Nova Corporation determines the details of HOW Jeff performs the applicable work
b. Jeff uses his own tools
c. Jeff sets his own schedule
d. Jeff performs the services from his home

BACKGROUND INFORMATION FOR QUESTIONS 49-50
Yessenia and Olga recently formed a corporation named YO! Inc. (or “YO!”). On December 31, 2012, YO! issued 800,000 shares of common stock to Olga and 800,000 shares of common stock to Yessenia. Olga and Yessenia each paid $0.01 per share for their stock ($0.01 equaled the per share fair market value on December 31, 2012). Their stock is subject to a 4-year “repurchase option” (at cost) in favor of YO!. Each YO! repurchase option will “lapse” over time so that on December 31 (of 2013, 2014, 2015 and 2016), 200,000 shares will be released from the repurchase option. For example, if Olga quits YO! before December 31, 2016, YO! can repurchase Olga’s “unvested shares” for $0.01 per share (no matter what the fair market value is on that date).

49. Assume that Tim DID NOT file a timely “83(b) election.” On December 31, 2014, Tim is still working at TJ and thus 200,000 of Tim’s 800,000 shares are “released” from the TJ repurchase option (i.e., 200,000 of Tim’s shares “vest” on December 31, 2014). On that same day, the fair market value of the TJ stock equals $10.01 per share. What 2014income, if any, must Tim report as a result of these events?

a. $8,000,000
b. $2,002,000
c. $2,000,000
d. $0

50. Assume that Jonathan DID file a timely “83(b) election.” On December 31, 2014, Jonathan is also still working at TJ and thus 200,000 of Jonathan’s 800,000 shares are also “released” from the TJ repurchase option (i.e., 200,000 of Jonathan’s shares “vest” on December 31, 2014). On that same day, the fair market value of the TJ stock equals $10.01 per share. What 2014 income, if any, must Jonathan report as a result of these events?

a. $8,000,000
b. $2,002,000
c. $2,000,000
d. $0

For getting the instant digital download solution, Please click on the “PURCHASE” link below to get Tax Questions Cristine’s boss gave her two tickets to the Justin Beaber concert Answer

Please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link. Please note that in case of technical glitch, the solutions will be emailed to you within 24 hours.

In case you find any problem in getting the download link or downloading the tutorial, please send us an email on mail@genietutorial.com

Tax Questions Cristine’s boss gave her two tickets to the Justin Beaber concert Answer