Solutions of Taxation | Assignment

Running head: TAXATION
Taxation
Name of the Student:
Name of the University:
Authors Note:

TAXATION
1
Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................2
Answer 3:.........................................................................................................................................2
Answer 4:.........................................................................................................................................2
Answer 5:.........................................................................................................................................2
Answer 6:.........................................................................................................................................3
Answer 7:.........................................................................................................................................3
Answer 8:.........................................................................................................................................4
Answer 9:.........................................................................................................................................5
Answer 10:.......................................................................................................................................5
Answer 11:.......................................................................................................................................6
Answer 12:.......................................................................................................................................6
Answer 13:.......................................................................................................................................6
Answer 14:.......................................................................................................................................7
Answer 15:.......................................................................................................................................7
Answer 16:.......................................................................................................................................7
Answer 17:.......................................................................................................................................7
Answer 18:.......................................................................................................................................8
Answer 19:.......................................................................................................................................8

TAXATION
2
Answer 20:.......................................................................................................................................8
Answer 21:.......................................................................................................................................9
Answer 22:.......................................................................................................................................9
Answer 23:.......................................................................................................................................9
Answer 24:.......................................................................................................................................9
References:....................................................................................................................................11

TAXATION
3
Answer 1:
Amount of Medicare for Mr. A with 2.9% of wages is $1,740, i.e. (60,000 x 2.9%).
Answer 2:
Self-employment tax in this case $3,749.
Answer 3:
Social security on annual income of $175,000 will be $16,480, i.e. 12.4% on first $132,900 and
Medicare of $4,687 @2.9% on income of $175,000 are responsibility of Mr. C.
Answer 4:
Calculation of basis in the partnership is shown below:
Basis in the partnership
Mr D Mr E
Contribution 5,000.00 5,000.00
Borrowed capital 30,000.00 30,000.00
Basis in the partnership 35,000.00 35,000.00
Answer 5:
Particulars Amount ($)
Contribution 60,000.00