6 $15,000. The rate is: ndrea is single and has a 2018 taxable income of $199,80

Question

6 $15,000. The rate is: ndrea is single and has a 2018 taxable income of $199,800. She also had tax-evempt interest of e amount of tax Andrea will pay on her taxable income is $45,625.80. Andrea's average tax a. 21.2% b. 22.0% . 22.8% d. 32.0% e. 33.2% ip sold 100 shares of ABC Corporation stock for $10,000 but he only recognized S2,000 as income a. Ability to Pay Concept. b. Administrative Convenience Concept. c. Arm's-Length Transaction Concept. d. Capital Recovery Concept. e. Business Purpose Concept. 7. Phill because the original purchase price was $8,000. This is due to the 8. Thomas purchased a plot of land in 1975 for $30,000. On June 1, 2018, the fair market value of the land was $575,000. Thomas has to recognize a gain on the land for 2018. a. True b. False 9. On April 1s, Connie is given $15,000 worth of City of Denver bonds for her 18th birthday. On June 30, she receives the $500 annual interest payment on the bonds. How much income does Connie recognize from these two transactions? a. S0 b. $500 c. $15,000 d. $15,500 10. Sarena invests $100,000 for a 20% interest in Downtown Partnership. In the first year of operations, Downtown reports net income from operations of $150,000. That same year, Downtown makes a $15,000 cash distribution to Monika. How much gross income must Monika recognize from her investment in Downtown? a. $20,000 b. $30,000 c. $45,000 d. $150,000

Explanation / Answer

6. 45625.80/199800 = 22.8%

7. Capital recovery

8. True

9. $ 0 . Interest on state and local bonds for state, district, and tribal governments and political subdivisions is exempt from federal tax

10. $ 30,000

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