ACC 401 Week 1 Assignment Chapter 2 Problems/ acc401tutordotcom

ACC 401 Week 1 Assignment Chapter 2 Problems 32, 33 & 38 (UOP)
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32-33-and-38
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32) List the five types of filing status and briefly explain the requirements for the use of each one.
33) In which of the following cases may the taxpayer claim head of household filing status?
a. The taxpayer is single and maintains a household which is the principal place of abode of her
infant son.
b. The taxpayer is single and maintains a household for herself and maintains a separate
household which is the principal place of abode of her dependent widowed mother.
c. The taxpayer is married from January to October and lived with his spouse from January to
May. From June 1 to December 31, the taxpayer maintained a household that was the principal
place of abode of his married son and daughter-in-law whom the taxpayer can claim as
dependents.
Same as (c) except the taxpayer lived with his ex-spouse until August and maintained the
household for his married son and daughter-in-law from September 1 to the end of the year
38) Julio and Martina are engaged and are planning to travel to Las Vegas during the 2009
Christmas season and get married around the end of the year. In 2009, Julio expects to earn
$45,000 and Martina expects to earn $15,000. Their employers have deducted the appropriate
amount of withholding from their paychecks throughout the year. Neither Julio nor Martina has
any itemized deductions. They are trying to decide whether they should get married on December
31, 2009 or on January 1, 2010. What do you recommend? Explain your answer (disregard the
making work pay credit).
Chapter 3: Problems 35, 36, & 42
35) Determine the amount of taxable income that should be reported by a cash-basis taxpayer in
2009 in each of the following independent cases.
A taxpayer completes $500 of accounting services in December 2009 for a client who pays for
the accounting work in January 2010.
A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2009,
she rents a computer for a $200 rental fee and receives a $500 deposit. The customer returns the
computer and is refunded the deposit on December 20, 2009.
Same facts as (b) except that the computer is returned on January 5, 2010.
On December 18, 2009, a landlord rents an apartment for $700 per month and collects the first
and last month’s rent up front. It is customary that tenants apply the deposit to their last month’s
rent upon moving out.
An accountant agrees to perform $500 of tax services for an auto mechanic who has agreed to

perform repairs on the car of the wife of the accountant. The mechanic repairs the car in
December 2009 and the accountant starts and completes the tax work in March 2010.
36. A taxpayer who purchases a Series EE U.S. Savings Bond must report the interest income
(i.e., increase in value) on the bond on the date the bond is redeemed or the taxpayer can elect to
report the interest currently in income. Under what circumstances should a taxpayer report
income at maturity? Under what circumstances is it more advantageous to report income
currently?
42. Sean, who is single, received social security benefits of $8,000, dividend income of $13,000,
and interest income of $2,000. Except as noted, those income items are reasonably consistent
from year to year. At the end of 2009, Sean is considering selling stock which would result in an
immediate gain of $10,000, a reduction in future dividends of $1,000, and an increase in future
interest income of $1,500. He has asked you for advice. What course of action do you
recommend