REG 1

The Clarks have a 21-year-old son, Alex, who is a full-time student at the state university. Alex received $10,000 in scholarships this year for academ achievement. He also works part time at the university bookstore and earned $5,400 this year. Alex's grandparents paid $7,000 to support Alex this year. Alex was home with his parents for two months in the summer and at school for the rest of the year. Alex used the scholarship, the earnings from the part-time job, and the money from his grandparents as his only source of support this year. Which of the following definitions does Alex meet for the Clarks?

Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year?

With regard to S corporations and their stockholders, the "at risk" rules applicable to losses:

Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of the following costs should be capitalized with respect to inventory if no exceptions have been met?

With regard to the inclusion of social security benefits in gross income, for the Year 8 tax year, which of the following statements is correct?

Which of the following items must be separately stated on Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule K-1?

Which payment(s) is (are) included in a recipient's gross income? I. Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a requirement toward obtaining the degree. II. A grant to a Ph.D. candidate for his participation in a university sponsored research project for the benefit of the university.

Freeman, a single individual, reported the following income in the current year: Guaranteed payment from services rendered to a partnership $ 50,000 Ordinary income from an S corporation 20,000 What amount of Freeman's income is subject to self-employment tax?

In a tax year where the taxpayer pays qualified education expenses, interest income on the redemption of qualified U.S. Series EE Bonds may be excluded from gross income. The exclusion is subject to a modified gross income limitation and a limit of aggregate bond proceeds in excess of qualified higher-education expenses. Which of the following is (are) true? II The exclusion applies for education expenses incurred by the taxpayer, the taxpayer's spouse, or any person whom the taxpayer may claim as a dependent for the year. II. "Otherwise qualified higher-education expenses" must be reduced by qualified scholarships not includible in gross income.

Robert Corp. granted an incentive stock option for 200 shares to Beverly, an employee, on March 14, Year 12. The option price and FMV on the date of grant was $150. Beverly exercised the option on August 2, Year 14, when the FMV was $180 per share. She sold the stock on September 20, Year 15, for $250 per share. How much gross income did Beverly recognize in Year 15?