What is Richard's adjusted gross income for 2004?

Richard, age 19, is a full-time student at State College and a candidate for a bachelor's degree. During 2004, he received the following payments: Wages: $2,000 State scholarship for ten months (tuition and books): $4000 Loan from college financial aid office: $1,750 Cash support from parents: $2,500 Cash dividends: 2,500 Cash prize awarded in a contest: 1,250 Total: $14,000 What is Richard's adjus... click for more

Judas is an executive for the Oak Furniture Manufacturing Company. Judas purchased furniture from the company for $1,500, the price Oak ordinarily charges a wholesaler. The retail price of the furniture was $3,000. The company also paid for Judas's parking space in a garage near the office. The parking fee was $2,000 for the year. Only highly compensated employees are allowed to buy furniture at the wholesaler’s price. In addition, the company does not pay other employees' parking fees.

Judas is an executive for the Oak Furniture Manufacturing Company. Judas purchased furniture from the company for $1,500, the price Oak ordinarily charges a wholesaler. The retail price of the furniture was $3,000. The company also paid for Judas's parking space in a garage near the office. The parking fee was $2,000 for the year. Only highly compensated employees are allowed to buy furniture at the wholesaler’s price. In addition, the company does not pay other employees' parking fees. Judas's gross income from the above is: a. $0. b. $1,500. c. $2,000. d. $3,500. e. None of the above.

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Chantell, an attorney, had the following income and expenses in her business: Commissions income $250,000 Expenses: Referral fees paid to non-attorneys for referrals (illegal under state law and subject to criminal penalties) $30,000 Referral fees paid to other attorneys for referral (not illegal under state law): $21,000 Travel and transportation $16,000 Supplies $5,000 Office and phone $4,000 Parking tickets $1,500 How much net income must Chantell report from this business? a. $172,500. b. $174,000. c. $204,000. d. $225,000. e. $250,000.

Assuming that the activity is deemed a hobby and that she cannot itemize this year, how should she report these items on her tax return?

Maxine pursued a hobby of knitting socks in her spare time. During the year she sold the socks for $ 2,250. She incurred expenses as follows: Supplies $2,200 Interest on loan to get business started 350 Advertising 475 Assuming that the activity is deemed a hobby and that she cannot itemize this year, how should she report these items on her tax return? a. Include $2,250 in income and deduct $3,025 for AGI. b. Ignore both income and expenses since hobby losses are disallowed. c. Include $2,250 in income and deduct nothing for AGI since hobby expenses must be itemized. d. Include $2,250 in income and deduct interest of $350 for AGI. e. None of the a... click for more

What amount of loss may Janine use for the current year?

Janine (not in the loan business) loaned Carly $30,000 two years ago. During the current year, Carly declared bankruptcy. The bankruptcy trustee informed the unsecured creditors that no assets are available for distribution from the bankruptcy estate. For the current year, Janine also had $18,000 of short-term capital gains. What amount of loss may Janine use for the current year? a. $30,000. b. $21,000. c. $9,000. d. $-0-. e. None of the above.