Questions from Federal Taxation

Q: In 2017, Bear Corporation transfers 100 shares of its stock to

In 2017, Bear Corporation transfers 100 shares of its stock to its employee Patrick. The stock is valued at $10 per share on the issue date. The stock is subject to the following restrictions: • Patri...

Q: On February 15, 2018, Jamal, who is single and

On February 15, 2018, Jamal, who is single and age 30, establishes a traditional IRA and contributes $5,500 to the account. Jamal’s adjusted gross income is $68,000 in 2017 and $57,000 in 2018. Jamal...

Q: During the current year, Helen donates stock worth $50,

During the current year, Helen donates stock worth $50,000 to her local community college. Two years ago the stock cost Helen $40,000. Her AGI for the current year is $100,000. Beginning next year, th...

Q: Phil, age 30, is married and files a joint return

Phil, age 30, is married and files a joint return with his spouse. On February 15, 2018, Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a $11,000 contribution, $5...

Q: Chatham Mae is single, age 35, and wants to make

Chatham Mae is single, age 35, and wants to make a contribution to an IRA for the year ended December 31, 2017. She is an active participant in a qualified retirement plan sponsored by her employer. H...

Q: Jack and Katie have five grandchildren, ages 19, 16,

Jack and Katie have five grandchildren, ages 19, 16, 15, 12, and 10. They have established Coverdell Education Savings Accounts (CESA) for each of the grandchildren and would like to contribute the ma...

Q: Paula is a self-employed doctor and is considering whether to

Paula is a self-employed doctor and is considering whether to establish a defined contribution H.R. 10 plan. Paula’s only employee is a full-time nurse who has been employed by Paula for seven years....

Q: Bell Corporation grants an incentive stock option to Peggy, an employee

Bell Corporation grants an incentive stock option to Peggy, an employee, on January 1, 2017, when the option price and FMV of the Bell stock is $80. The option entitles Peggy to buy 10 shares of Bell...

Q: Bender Corporation grants a nonqualified stock option to Penny, an employee

Bender Corporation grants a nonqualified stock option to Penny, an employee, on January 1, 2017, that entitled Penny to acquire 1,000 shares of Bender stock at $80 per share. On this date, the stock h...

Q: Dan and Cheryl are married, file a joint return, and

Dan and Cheryl are married, file a joint return, and have no children. Dan, age 45, is a pharmaceutical salesman and Cheryl, age 42, is a nurse at a local hospital. Dan’s SSN is 400-20-1000 and Cheryl...