Tax USA Assignment 3
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Assignment3-ACCT422-forStudent.docx
College of Administration and Finance Sciences
Assignment (3)
Deadline: Saturday 27/11/2021 @ 23:59
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Course Name: Tax and Zakat Accounting |
Student’s Name: |
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Course Code: ACCT 422 |
Student’s ID Number: |
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Semester: 1st |
CRN: |
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Academic Year: 1443 H |
For Instructor’s Use only
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Instructor’s Name: Dr. Ashfaque Ahmed |
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Students’ Grade: /5 |
Level of Marks: High/Middle/Low |
Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
· Submissions without this cover page will NOT be accepted.
Assignment 3
Answer
Q.2- Mr. X and Mrs. Y are married and have two dependent children. P & Q They also fully support Mrs. Y’s mother who lives with them and has no income. Their 2014 tax and other related information is as follows: (2 marks)
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Particulars |
Amount in $ |
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Total salaries |
320,000 |
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Bank account interest income |
7,000 |
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Municipal bond interest income |
3,000 |
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Value of employer provided medical insurance |
11,000 |
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Value of premiums for $ 100000 of group term life insurance provided by employer |
1,000 |
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Gift from X’S parents |
30,000 |
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Gain from the sale of qualified small business stock acquired in 2008 |
30,000 |
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Total itemized deductions |
32,000 |
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Dividend income—from ABC stock, |
4,000 |
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Loan from X’S parents |
10,000 |
Required: Compute Mr. X and Mrs. Taxable income. (Show all calculations in proper /good form.)
Q.3- Ahmed’s medical expenses include the following: (1.5 mark)
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Particulars |
Amount in $ |
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Food for personal use (expenses) |
2,000 |
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Travel allowances |
5,000 |
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Visitors fees |
1,000 |
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Prescription drugs |
1,200 |
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Eyeglasses |
700 |
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General purpose vitamins |
200 |
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Medical premiums |
21,700 |
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Doctors’ fees |
4,000 |
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Hospital fees |
6,700 |
Ahmed’s AGI for the year is $66,000. He is single and age 59. Insurance company reimburses none of the medical costs and other related items. After considering the AGI floor,
Required - What will be Ahmed’s medical expense deduction?
