# Income tax | Accounting homework help

[removed]e.None of these choices are correct.

Albert had a terminal illness which required almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of \$100,000. Albert had paid \$25,000 of premiums on the policy. The insurance company has offered to pay him \$80,000 to cancel the policy, although its cash surrender value was only \$55,000. Albert accepted the \$80,000. Albert used \$15,000 to pay his medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy:

[removed]a.Albert must recognize \$65,000 (\$80,000 – \$15,000) of gross income.

[removed]b.Albert must recognize \$55,000 of gross income, but he has \$15,000 of deductible medical expenses.

[removed]c.Albert is not required to recognize any gross income because of his terminal illness.

[removed]d.Albert must recognize \$40,000 (\$80,000 – \$25,000 – \$15,000) of gross income.

[removed]e.None of these choices are correct.

Tonya is a cash basis taxpayer. In 2016, she paid state income taxes of \$8,000. In early 2017, she filed her 2016 state income tax return and received a \$900 refund.

[removed]a.If Tonya itemized her deductions in 2016 on her Federal income tax return, she must amend her 2016 Federal income tax return and use the standard deduction.

[removed]b.If Tonya itemized her deductions in 2016 on her Federal income tax return and her itemized deductions exceeded the standard deduction by at least \$900, the refund will not affect her 2017 tax return.

[removed]c.If Tonya itemized her deductions in 2016 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than \$900, she must recognize \$900 income in 2017 under the tax benefit rule.

[removed]d.If Tonya itemized her deductions in 2016 on her Federal income tax return, she should amend her 2016 return and reduce her itemized deductions by \$900.

[removed]e.None of these choices are correct.

Marsha is single, had gross income of \$50,000, and incurred the following expenses:

 Charitable contribution \$2,000 Taxes and interest on home 7,000 Legal fees incurred in a tax dispute 1,000 Medical expenses 3,000 Penalty on early withdrawal of savings 250

Her AGI is:

[removed]a.\$49,750

[removed]b.\$39,700

[removed]c.\$39,750

[removed]d.\$40,000

[removed]e.None of these choices are correct.

During 2015, the first year of operations, Silver, Inc., pays salaries of \$175,000. At the end of the year, employees have earned salaries of \$20,000, which are not paid by Silver until early in 2016. What is the amount of the deduction for salary expense?

[removed]a.If Silver uses the cash method, \$0 in 2015 and \$195,000 in 2016.

[removed]b.If Silver uses the accrual method, \$175,000 in 2015 and \$20,000 in 2016.

[removed]c.If Silver uses the accrual method, \$195,000 in 2015 and \$0 in 2016.

[removed]d.If Silver uses the cash method, \$175,000 in 2015 and \$0 in 2016.

[removed]e.None of these choices are correct.

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.