ACCT 224 DeVry All Week Homework and You Decide

Prepare the Erbs Form 1040 tax return using .equella.ecollege.com/file/33659931-e9a7-4513-84f0-
0cfe7d784d83/1/images--acct224_w2.gif">Jackson's W-2. Click .equella.ecollege.com/file/33659931-e9a7-4513-84f0-
0cfe7d784d83/1/documents--YouDecide_wk21040.pdf">here for a fillable Form 1040.
Prepare a two- to three-page paper (approximately 350 words per page) explaining the following to the Erbs.
Why can't you give them a refund?
How were their refund and taxes due calculated?
Why are they or why are they not subject to the AMT?
Grading Rubric
Category Points Description
Comprehension 10
Analysis 15
Execution 5
Total 30
Demonstrate a strong grasp of the problem at hand. Demonstrate an understanding
of how the course concepts apply to the problem.
Apply original thought to solving the business problem. Correctly apply concepts
from the course material toward solving the business problem.
Write your answer clearly and succinctly using strong organization and proper
grammar. Use citations correctly.
A quality paper will meet or exceed all of the above requirements.
ACCT 224 DeVry Week 3 Homework Assignment
Please complete the below problems and submit your answers in the Week 3 Drop Box.
See "Syllabus/Due Dates for Assignments & Exams" for due date information.
1. Compare and contrast being an employee and an independent contractor. Which one would you rather have as a
business owner? Which one would you rather be as a worker? Why?
2. What is the passive activity loss limitation? Are rental activies passive activities? Why or why not?
ACCT 224 DeVry Week 4 Homework Assignment
Please complete the below problems and submit your answers in the Week 4 Drop Box.
See "Syllabus/Due Dates for Assignments & Exams" for due date information.
1. Nancy gave her grandson, Sean, twenty acres of land. Her tax basis in the land was $25,000. Nancy's marginal tax
rate for the current year is 45%; her grandson's is 25%.Its fair market value was $575,000 at the date of the transfer. If
the gift tax rate is 40% and she has never made a gift in excess of $10,000 before this, what amount of gift tax will she
pay? What is their net tax savings percentage as a family unit if Sean sells the land?
2. Tom and Judy Bell, who file jointly, collected $6,000 of Social Security benefits, $18,000 in fully taxable pension
payments and $10,000 of tax-exempt interest. How much of their Social Security is included in gross income? How
would this change if they had received $20,000 in tax-exempt interest?